We discussed the issue of choosing a trading strategy wisely, based on the trader’s psychotype. Now, in continuation of the topic, let's see what happens if you do nothing of this, but trade everything and everyone, without taking into account your own psychological characteristics.

Typical beginner's path

It’s a little sad to write about this because most people go this way. And this despite the fact that tons of materials have already been written on this topic. Probably many of you also followed this path, being firmly convinced that this time everything would be different. If you are just starting to master the profession of a trader, I hope that after reading this article you will be able to achieve success in an easier way.

So, you hate your job, you've been sleeping for a long time and see an opportunity to get rid of the need to work from dawn to dusk, and suddenly you open the stock exchange.

Office. Monday morning. You are sitting at your workplace. “My life sucks,” you tell yourself, and start surfing the Internet in search of an opportunity to break this vicious circle of routine. What options do people usually consider in this situation?

• Real estate investing,
• Stock trading,
• Forex,
• Online marketing,
• Futures,
• Creating videos on YouTube,
• Launching your own Telegram channel
• and so on.

However, if you are reading this text now, then most likely you have chosen stock trading, that is, you have decided to become a trader. You are excited and eager to start your “trading journey” as soon as possible, so you are in a hurry.

Here's what happens next

You register on a bunch of trading forums or join trading groups on social networks. More often than not, both at once. Now that you are determined to become a billionaire, you begin to learn the basics of the profession in these free communities. These are really great places to start.. You can learn trading jargon and get help setting up the software. The most important thing is that it's free!

You follow a few of the most active groups of forum members and try out some trading systems. Forums can help you get started, but they can also be really confusing. For the most part, blind people here work as guides for the blind.

Some say one thing, others say the exact opposite. And it's starting to get annoying. You begin to realize that you are slowly degenerating along with the whole crowd.

You start looking for an opportunity to learn something new and move forward and decide to buy your first trading course. Next, you start Googling to find a reputable mentor, choose a course based on how financially profitable it is, how famous the author of the method is, whether he trades professionally himself, and, if so, how successful.

We chose and bought. Everything goes well for a while. You are glad that you were able to learn this proven trading system. Learning the system is quite simple, and you start using it on a real account that you have just opened.

You earn your first money

The trading system works quite well and you have your first profitable week! You think that this is it – happiness and life is a success! Everything turned out to be much simpler than what was written on the forums and what different, experienced guys said.

So instead of risking 1% on a trade as your mentor recommends, you start risking more volume. Maybe 5% on some deals. But you only risk 10% on trades in which you are truly confident. It’s only a matter of time for you to turn 500 dollars into 100,000, and soon!

The Big Bang Theory"

And then THIS happens. You open a trade that is too risky and forget to set a stop loss. At the same time, you are at work, and you do not have the opportunity to continuously monitor what is happening on the monitor. But you are sure that now your trading account is systematically increasing there, and you will soon get rid of the need to deal with all sorts of stupid nonsense in the office every day.

You are brought back to reality by receiving an SMS message from the broker stating that you urgently need to top up your trading deposit in order to avoid account closure. All your trading capital is drained. There is no point in describing in detail the whole gamut of experiences here. Those who have gone through this will understand this way, and those who have not will understand later when they experience it on their own skin.

So what now? After getting over your worries, the search for a trading robot or automatic trading system begins.

You are funding your trading account again, but this time you will definitely be “smarter”.

Since you cannot control your transactions while at work, you will entrust this mission to a trading robot.

So you dive back into the internet, looking for a couple of advisors that look extremely promising. You buy them and install them in full accordance with the attached instructions.

Guess what's happening?

They actually start making money. First week. Now that your trading is on autopilot, thanks to trading robots, you are thinking about where you can invest your excess profits. At this moment, you tell your friends and family that you have finally mastered this damn trading.

But you also do something else. Remember those money-making opportunities you considered at the office? Why not explore them too! You start going to real estate investing meetings and even try your hand at internet marketing. This distracts you from trading and you lose focus.

I call these actions “diamond smoke floating in the janitor’s room,” by analogy with the wonderful novel by I. Ilf and E. Petrov. It tends to dissipate as suddenly as it formed. Because around this very time, your advisors are unanimously draining your deposit. This usually starts when the market goes flat. Several trades with a slight minus, then several trades with a slight plus, then minus again. Gradually the losses become greater.

Now you finally understand that unless you wrote the robot and know how it works, you will never understand why it stopped working. Thus, you come to the understanding that automated trading is not the answer either, and you again begin to consider options for learning to trade for yourself.

Welcome to the search team

This is how a new stage in your professional development begins, which I conventionally call “the search for the Grail.” You move from course to course, from trading system to trading system in search of your “holy grail”. This phase can last for months or even years.

Every time you lose money using another trading system, you think that it is a mistake in the trading system. You keep paying for courses, hoping that the next one will finally take you to the promised land.

The very bottom

After a while, the endless jumping gets tiring. At this moment you realize that you have come to a complete standstill and have sunk to the bottom. What can't you do when you hit rock bottom? That's right, you can't dig. The thought comes that trading is not your path. It is at this stage that most people quit the race. From start to finish, as a rule, this journey takes from nine months to two years, and takes with it from one to three deposits.

Now you are faced with a difficult choice: admit defeat and accept the office routine for the rest of your life, or continue to fight and go towards your dream? You remember that you are not used to retreating and always achieve success. Therefore, we need to keep moving forward.

Financial Manager

What if you use the experience and knowledge of a professional trader? He will supply you with his trading signals, and you will simply need to copy them. And that's it! Instead of trusting your hard-earned money to a soulless machine, some robot, isn't it better to find a person? Yes, definitely this is the way out!

Thus, you divided your rather shabby, but still existing risk capital between two traders - Vasya and Petya. Literally it immediately became clear that Vasya turned out to be a swindler, about whom they had already written on the Internet, but for some reason you did not stumble upon this information in time.

But Petya is actually a really good trader. But the technology that copies his trades to your terminal for some reason works poorly, constantly crashes, and in the end you lose money, instead of making the 10% that Petya made last month. You decide that the practice of following other people's trading signals also does not always work and does not work for everyone.

Return. You find a mentor again

Having decided to understand everything thoroughly, you sit down to sum up the results. At this point, you've tried a lot of different things and have come a long way. If by this moment you still have free funds for trading, and, most importantly, the desire to become a trader, then congratulations. You will become a trader.

So what remains? Start training again. Now you look around for the most successful trader you can find and book a private mentoring session. It costs a lot of money, but you think it's worth it.

The first mentor doesn't help, so you try to find another one. Then again. You have returned to the path of searching for the “Grail” again, only this time such a search costs much more. What else do you have left? At this moment, sometimes there may be a feeling of complete powerlessness and moral devastation.

But, according to some unknown laws and rules, it is at this moment that a miracle happens. You understand that the proverbial “Grail” was actually with you all along. More precisely, inside you.

You turn to face yourself and begin to learn to understand yourself so that you can finally learn to use this magic cup for its intended purpose. This is how you come to determine your psychotype and begin to trade what is comfortable for you. Just when you are about to give up, it is as if you receive an electric shock. It works. Do you understand? It just works and that's it. Sometimes you can't even explain how it works.

You suddenly realize that there are trading systems that you absolutely hate trading, and there are others that you have confidence in and that you can figure out if you put in enough time. Now you are re-reading all the notes you have collected over the years. Review training courses and mentor lessons. Which ones did you like best? You start learning and testing trading systems again. You figure out which ones fit your personality and lifestyle.

This is also a search for the “Grail”, but this is a completely different search! If only you had realized this earlier! How much time, nerves, effort and money (I especially feel sorry for money) could be saved!

Conclusion

As you probably already understood, if you start by understanding your personality, and not just studying trading systems, you can have a huge bonus. But most traders don't do this. But I hope that now that you have read all this, it will help you quickly reach your dream of freedom.

The book “The Trader’s Way” was written by a very young author. Is it worth listening to his opinion and attempts to teach trading? In order to find out whether the reader will find anything useful in this work of literary trading art, it is worth carefully studying its contents.

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A certified specialist in the field of global economics, he has worked in the Otkritie brokerage structure since 2007 as a consultant, and by the end of 2008 he became the head of the trader training department. In 2010, Dmitry became the founder of one of the largest organizations of this kind, the Helius Group company, which actively provides training and investment services.

The main motivating factor for reading his book was the information that Cheryomushkin was able to achieve a profitability of 1200% in just three months in 2008, and in 2013 one of Dmitry’s students managed to earn 18 million rubles. This means that the author can still teach something.

For reference! At the age of 30, Cheryomushkin is known as a winner of the “Best Private Investor” competition and a silver medalist of the “Battle of Traders.”

How is the textbook useful for traders?

The textbook was published in 2015 by Alpina, but in free access appeared only at the beginning of 2017. Contains 110 pages, including 10 illustrations.

The full title of the book is “The Trader’s Way. How to become a millionaire by trading in financial markets” encourages you to read it from cover to cover. Who doesn't want to become financially independent? Indeed, beginners who are just planning to become traders will learn a lot of useful things from the textbook. This is not just a description of the thorny path from a student to a successful trader from Dmitry Cheryomushkin, but also an explanation in simple language the most common terms.

Throughout the entire story, the idea slips through that you should never give up, especially in trading. As an example, Dmitry describes the first 2 years of his history, during which he suffered significant losses.

After a short introduction about how trading is a good option for earning a living, the reader is treated to 8 chapters on market economics. They will help you learn the basics of trading and choose a specific strategy that is optimal for each person personally.

Each chapter ends with a list of practical tasks for the student. And the textbook ends with Cheryomushkin’s motivating monologue about how you should never stop learning.

Where can I buy the book?

It is difficult to find a trading textbook in bookstores, but sometimes sellers agree to order the publication. In this case, its cost will be on average from 700 rubles.

It is much easier to order home delivery of a book from one of the online stores. In addition, there is an option to purchase a textbook with the autograph of Cheryomushkin himself on the Helius Group service, but the cost then will be twice as much, from 1,200 rubles.

You can download the electronic version of the book for a certain price in the following formats:

• Word;
• Epub.

There are also zipped files and versions adapted for small gadget screens.

Some stores provide the opportunity to read a textbook even from a push-button telephone using the java program.

There is an option to study the book for free - some services offer to read “The Trader’s Way” online.

“The Trader’s Way” is unlikely to be suitable for experienced users: everything that is presented in the book is already known to them. But for beginners, the textbook is a godsend; it will allow you not only to learn the basics of trading, choose the optimal strategies for successful trading, but also to find the strength not to give up when you fail.

Dmitry Cheryomushkin

The Trader's Path: How to become a millionaire by trading the financial markets

Project Manager A. Efimov

Corrector I. Astapkina

Computer layout A. Abramov

© Cheremushkin Dmitry, 2015

© XELIUS TRADING LLC, 2015

All rights reserved. The work is intended exclusively for private use. No part of the electronic copy of this book may be reproduced in any form or by any means, including posting on the Internet or corporate networks, for public or collective use without the written permission of the copyright owner. For violation of copyright, the law provides for payment of compensation to the copyright holder in the amount of up to 5 million rubles (Article 49 of the Code of Administrative Offenses), as well as criminal liability in the form of imprisonment for up to 6 years (Article 146 of the Criminal Code of the Russian Federation).

Dedicated to my mother, who always believed in me and helped me become who I am today

Instead of an introduction

Every person has the opportunity to change their life beyond recognition. Stock trading is a great way to do this. I chose the path of a trader. And he leads me from one goal to another, helps me turn dreams into reality. But don’t rush to delude yourself. Trading is hard work that requires time, money, persistence and faith.

The book you are holding in your hands is my attempt to change the balance of financial victories and defeats in favor of private traders. According to various experts, about 97% of exchange players ultimately lose money in the market. Sometimes they lack the patience and endurance to become successful, but most often the path in the world of trading ends due to the lack of basic knowledge in the field of stock trading.

I have been teaching traders for more than seven years. During this time, more than a thousand people have passed through me, and I can definitely name the reasons why this or that trader works out in the red. This book was written precisely to help you avoid most mistakes and achieve success with minimal losses. I tried to make the presentation easy and simple, so that even a beginner could understand the fundamental rules by which professional trading in financial markets is built.

At one time I dreamed of such a book, but successful traders do not strive to share their experience with others. Often books are written by failed traders. And as a result, their trading advice is just as bad. As for me, my career has had both ups and downs, each of which has enriched me with valuable experience. And today I make money on financial markets! I earn good and stable money. I think I have the right to give advice.

In this book, I will tell you how to make trading a job that your friends and acquaintances will dream about. I have already walked this path, and now I am ready to show it to you.

Frustrated expectations

Why do you need an exchange

Let's ask ourselves: why do people come to financial markets? Most novice traders believe that this is the easiest way to achieve material wealth. You don't need to invent new ones marketing gimmicks to attract clients, negotiate with counterparties, keep accounting records, control your employees - nothing that an ordinary entrepreneur has to worry about. At first glance, the life of a trader is like a fairy tale: you can press one key on your computer to buy some assets cheaper, and after some time you sell them at a higher price, earning tens, hundreds, and even millions of dollars! At the same time, you are not tied to a specific place. Today you trade from Moscow, and tomorrow from Paris. Tired of big cities? And now you are somewhere on the paradise islands conducting multi-million dollar transactions using a brand new ultra-thin MacBook. Not life, but a fairy tale! And what’s most surprising is that for some very rare market participants, this is reality. I have good friend, who lives exactly as I just described. Often when I call him to arrange lunch in one of the cozy Moscow cafes, it turns out that he is now with his family in Singapore or crossing the American continent from east to west. In general, he lives where he wants and makes financial transactions when he finds time for it. However, I personally know few people who live such a life - you can count them on the fingers of one hand.

We often hear names like George Soros and Warren Buffett. They made fabulous fortunes in the financial markets. For example, in 1992, George Soros made several billion dollars by shorting the British pound. This financial transaction went down in history, but there were other large, albeit less public transactions. Most of George Soros's transactions were speculative in nature, which cannot be said about one of the greatest investors of our time - Warren Buffett. At one time I studied his biography. 800 pages of fine print chronicling his journey into the world of investing. What surprised me most was that he still doesn’t use a computer. He doesn't need access to the World Wide Web to view financial statements. The famous investor analyzes it on paper and makes his own calculations using a calculator and a regular ballpoint pen.

When people start looking for information about these two prominent personalities on the Internet, they are faced with a huge stream of advertising that promises easy and quick money by trading currency pairs or stocks. And so, tempted by one of the offers, a person opens his first brokerage account and makes his first transactions on the market. Online trading truly makes stock trading accessible to everyone. But who are these “everyone”?

I have extensive experience in training traders. Over the past years, I have clearly defined my clients. As a rule, these are men over 30. All of them can be divided into two categories. The first is people who already earn good money. These are either businessmen or senior managers. They have enough money to deny themselves almost nothing. They drive expensive cars and fly to warm countries three to four times a year. Their children study in the best schools and universities. Why do they need trading? Usually these people come to the market because they are terribly tired of their usual work. Yes, dear reader, not everything is measured by money. Sometimes a person wants variety, more emotions, excitement, a sense of life! And stock trading provides all this. Sometimes, however, you can meet those who want to diversify their sources of income. Good idea, but you just need to understand from the very beginning what exactly should generate alternative income: investing or trading. Can you afford to monitor quotes 8–10 hours a day? If yes, then you are welcome to become traders. Otherwise, only the path of an investor opens before you. Of course, you can try long-term trading, making transactions once a week or a month, but according to my observations, if a person does not strive to become a professional, then he has nothing to catch on the stock exchange. As in any business, amateurs are quickly washed out of the market. Only those who really invest time and money in trading are able to make money from it.

But I did not describe the second category of my students. These are people with modest incomes, which are brought to them by boring and time-consuming work. By the age of 35, they had achieved a low-level position. Further growth seems unlikely. Youth is in the past, dullness and despondency lie ahead. Some people come to terms with the fact that they will have to live this kind of life for the rest of their lives, while others begin to struggle. He wants to live a completely different life, full of colors and happiness! And the only way is to make a quantum leap! Someone opens a business, and someone goes into the world of trading.

If you consider yourself to be in this category of people, then you should not make the following mistakes.

The first mistake. Never quit your job until you have a stable income. Try to combine work and trading in financial markets. This is what I did at one time when I got a job at a brokerage company. I killed two birds with one stone - I had a permanent salary, which allowed me to pay the bills and not be in need. At the same time, I could safely trade and improve in the financial markets, because my job was precisely to monitor these markets.

Error two. Don't lose more than 10% of your monthly income on the market. I knew a trader who consistently lost more than 50% of his income from his main activity in the market. He took the remaining amount home to his wife and children. Since he earned little, the family could barely make ends meet. Remember: until there are stable positive results, you cannot bring a lot of money to the market. I started trading with $100 at the beginning of my career. And my main mistake was that I took $10 from my parents and lost half! Then I went back to the $100 deposit and turned it into $500,000 in two years!

Dmitry Cheryomushkin

The Trader's Path: How to become a millionaire by trading the financial markets

Project Manager A. Efimov

Corrector I. Astapkina

Computer layout A. Abramov

© Cheremushkin Dmitry, 2015

© XELIUS TRADING LLC, 2015

All rights reserved. The work is intended exclusively for private use. No part of the electronic copy of this book may be reproduced in any form or by any means, including posting on the Internet or corporate networks, for public or collective use without the written permission of the copyright owner. For violation of copyright, the law provides for payment of compensation to the copyright holder in the amount of up to 5 million rubles (Article 49 of the Code of Administrative Offenses), as well as criminal liability in the form of imprisonment for up to 6 years (Article 146 of the Criminal Code of the Russian Federation).

Dedicated to my mother, who always believed in me and helped me become who I am today

Instead of an introduction

Every person has the opportunity to change their life beyond recognition. Stock trading is a great way to do this. I chose the path of a trader. And he leads me from one goal to another, helps me turn dreams into reality. But don’t rush to delude yourself. Trading is hard work that requires time, money, persistence and faith.

The book you are holding in your hands is my attempt to change the balance of financial victories and defeats in favor of private traders. According to various experts, about 97% of exchange players ultimately lose money in the market. Sometimes they lack the patience and endurance to become successful, but most often the path in the world of trading ends due to the lack of basic knowledge in the field of stock trading.

I have been teaching traders for more than seven years. During this time, more than a thousand people have passed through me, and I can definitely name the reasons why this or that trader works out in the red. This book was written precisely to help you avoid most mistakes and achieve success with minimal losses. I tried to make the presentation easy and simple, so that even a beginner could understand the fundamental rules by which professional trading in financial markets is built.

At one time I dreamed of such a book, but successful traders do not strive to share their experience with others. Often books are written by failed traders. And as a result, their trading advice is just as bad. As for me, my career has had both ups and downs, each of which has enriched me with valuable experience. And today I make money on financial markets! I earn good and stable money. I think I have the right to give advice.

In this book, I will tell you how to make trading a job that your friends and acquaintances will dream about. I have already walked this path, and now I am ready to show it to you.

Frustrated expectations

Why do you need an exchange

Let's ask ourselves: why do people come to financial markets? Most novice traders believe that this is the easiest way to achieve material wealth. You don’t need to come up with new marketing tricks to attract customers, negotiate with counterparties, keep accounting records, control your employees - nothing that an ordinary entrepreneur has to worry about. At first glance, the life of a trader is like a fairy tale: you can press one key on your computer to buy some assets cheaper, and after some time you sell them at a higher price, earning tens, hundreds, and even millions of dollars! At the same time, you are not tied to a specific place. Today you trade from Moscow, and tomorrow from Paris. Tired of big cities? And now you are somewhere on the paradise islands conducting multi-million dollar transactions using a brand new ultra-thin MacBook. Not life, but a fairy tale! And what’s most surprising is that for some very rare market participants, this is reality. I have a good friend who lives exactly as I just described. Often when I call him to arrange lunch in one of the cozy Moscow cafes, it turns out that he is now with his family in Singapore or crossing the American continent from east to west. In general, he lives where he wants and makes financial transactions when he finds time for it. However, I personally know few people who live such a life - you can count them on the fingers of one hand.

We often hear names like George Soros and Warren Buffett. They made fabulous fortunes in the financial markets. For example, in 1992, George Soros made several billion dollars by shorting the British pound. This financial transaction went down in history, but there were other large, albeit less public transactions. Most of George Soros's transactions were speculative in nature, which cannot be said about one of the greatest investors of our time - Warren Buffett. At one time I studied his biography. 800 pages of fine print chronicling his journey into the world of investing. What surprised me most was that he still doesn’t use a computer. He doesn't need access to the World Wide Web to view financial statements. The famous investor analyzes it on paper and makes his own calculations using a calculator and a regular ballpoint pen.

A trader works in harsh conditions that require him to have special skills and specific knowledge of the theory of stock trading. He can get knowledge from different sources, but he will have to develop skills on his own.

Conditions for entering via Sell:

1. The blue line (MACD Combo) is crossed by a red line above the zero level.
2. The Parabolic dotted curve is above the price (signal of a trend change).

By various reasons the same trading strategy leaves some with a profit, while others fall to a loss. Don’t be fooled by intuitive trading as a system – it doesn’t exist. Look for your strategy that matches your psychology.

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The best in the line of analytical trading systems and easy to use, in 1 month it will increase your deposit by more than 57%. Remember that the market is a dynamic organism. You need to change your trading strategies regularly to keep up with the successes and financial victories of other market players.

5. Technical analysis

To conduct technical analysis, a trader has a huge number of indicators in his arsenal. They are used in combination and independently to determine or confirm various market conditions.

Dmitry Cheremushkin is convinced that technical analysis is a method of qualitative research of the market situation to identify entry points. He warns that trading with complex indicators is better left to robots. A lot of material in the book is devoted to technical analysis, its classic figures and testing their signals on “historical data” - old charts.

The author recommends trading “with the trend” as the simplest trading method. The entry point for a trade is considered to be a rebound of the chart curve from the trend line or its breakthrough:

Uptrend – buy (“Buy”) until the trend is broken. If the curve breaks the resistance line, we buy the predicted number of points. When a rebound occurs from the support line, we continue to hold open Buy positions or open new, short-term ones. Breaking the support line signals a likely change in trend. If the market reversal is confirmed, you can open sell positions (“Sell”).

Cheryomushkin introduces the reader to the types of markets, their features and their main players. He tells you how to choose a market, decide on leverage and starting capital. From the book you will learn more about trading strategies, risk management systems, diversification, and much other useful information.

Let's sum it up

The market reacts to new technologies, and its movement reflects the activity of its participants. A trader should not be afraid to master new trading technologies, methods and approaches in market analysis. Robots are replacing humans in various areas of their activity, displacing them in stock trading. Robots are devoid of emotions; they calculate the market with lightning speed and instantly react to its changes. The human task is to understand the entire exchange trading system and write new effective robots.