This article was written in partnership with IG,the world’s No. 1 CFD provider (by revenue excluding FX, February 2018). All opinions expressed in the article are the independent opinion of DollarsAndSense.sg
Trading and investing are two different ways to make money from the financial markets. While the investor aims to profit by investing in the assets that any increase in value with the passage of time or the payment of normal earnings, distributions or benefits, traders usually aim to profit by taking advantage of short-term price volatility in the assets actively trade.
Most of the traders also their sites to increase trading volume and thus exposure. Leverage is a double-edged sword: it can be used to significantly increase the returns good pages or it can translate into bigger losses on the bad trades.
As trading is generally considered more dangerous, requires more time and skills, the returns to Successful Traders also tend to be higher. This makes it both profitable and potentially dangerous at the same time, especially if the trader is not able to manage the risk.
In order to understand the journey of what it takes to become a Successful Trader, DollarsAndSense.sg talked Rainer “Teo”. Rainer independent following ex support the following and founder of the blog TradingwithRayner. It is also the most follow the trader in Singapore, with more than 75,000 Trade read the blog every month.
Rainer has been trading since the days of the University. Graduated from the University of London (UOL) with first class honours in banking and finance and was the valedictorian of her graduation in 2012.
DollarsAndSense (DNS): a lot of people are fascinated on what it is like to be next. Can you share with us how a typical day looks like for you?
Rayner Teo (RT): a normal day for me is to survey the market every morning to search for a trading setup. This takes me about an hour. Then it will monitor trade positions every few hours to make sure she’s okay, and that any risk I face well.
I also spend some time each day to write down my thoughts on my website TradingwithRayner. Since I work from home, I also get to spend some time with my wife and child if they were at home.
DNS: what you started in trading?
It started when the broker Inn to the university to organize contests forex. Then you are clueless about trading only idea I have about the financial market was knowing how to read financial reports and calculate financial ratios. I said to myself that trading was just a copy of an accelerated pace of investment – how difficult it can be.
You are wrong.
I participated in the contest and in a matter of days, blew my account and was kicked out of the competition. This is how I started.
This is basically how I started trading.
DNS: graduated with first class honours and was valedictorian, so you obviously did well in school. Why don’t you get a career in the corporate world like most of your colleagues?
During national service, he was enlisted in the 1 commando battalion. I went from being humble all my life to be placed in a elite fighting unit. For two years we were constantly reminded that nothing is impossible and that many times, the difference between achieving and not achieving something simply depends on how we want it.
During my time in the army, I also read a book called the secret of Self-Made Millionaire Adam Khoo. From this book, I learned that there is more to life than just working for someone more to life than just being modest.
These two things shaped my belief.
Needless to say, I’m not interested in pursuing a career in the corporate world. People work half their lives to retire at 65. I didn’t want it. I wanted the freedom to do the things that I love today. The thing that struck me is that I’m in need of a professional. A skill that can help put food on the table for me and my family.
I didn’t want to be trapped in a work environment that didn’t like me just because of my skills not to. I didn’t want to climb the wrong corporate ladder. This is why I choose to go to trading, starting out in prop trading.
DNS: as before you decide to strike your own independent next? What prompted the decision?
As a prop trader you are in the company for a few years. Being short-term the next day, long hours. Although the skills that she picked me to keep he was still a slave to the market as it was to watch the market for long hours.
I didn’t feel that was possible if I wanted to time my family and other personal matters. I started trading on my own and moved at the end of trading.
DNS: as an independent trader, the lack of stability of the fixed income should be daunting. What did you do in order to manage these risks?
It’s not really risky if you know how to manage your risk.
I was alone at that stage my father was very supportive. I didn’t have any student loan credit card debt or a car loan. I can survive on $ 500 a month then you just need to put food on the table myself to make sure I didn’t go hungry.
After working for several years, also had some savings. You know I’ll be fine the next few years even if I didn’t make any money from trading.
DNS: how long does it take before you become profitable?
It took me about four years to become profitable certainly wasn’t an easy journey. I started at the University and spent a lot of time searching for information, products and tips and read many business books. I’ve tried many different strategies and it took me some time before I realized that there are many ways to skin a cat, and that you need to find the way that suits you.
In the first phase, my trip was just about the losses. However, there was one particular moment when I caught the direction and ran all the way up. This successful experience to cover all previous losses. I had aha moment, as I realized that it’s okay for me to make as many small losses as long as I can fishing and riding, profitable direction.
I’m still learning. This is always a continuous journey.
DNS: what are some misconceptions that I realized after that I started trading?
One of the biggest misconception is that traders believe they need to predict the market in order to earn money. This is not true.
Think of it from a casino standpoint. Casinos deal with statistics and requirements all the time and this is quite similar to trading. At any point in time, the casino has no idea about the outcome of the roulette or blackjack table next five or 10 rounds of play. I don’t know if they will make or lose money. And do not care.
However, what casinos did you know that given enough time, the edge will play out and deliver profits.
Similarly, as a trader, you don’t have to be concerned about where the market is heading. Every time I put my trades, I don’t have any idea about any of my trades on winners.
If a trading setup presents itself, I take it. If the trade goes against cutting losses. If it moves in my direction, I’m riding this trend until it hits my trailing stop loss. That’s about it. Don’t predict the market.
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DNS: besides to do your trades, what are you involved in today?
Apart from trading, I also participate in the management of trading education site TradingwithRayner. Do not cover the topics such as trading, risk management, trading psychology. And recently co-authored a book entitled trade scheme with three of the other traders.
DNS: what is the motivation to start some of these initiatives?
When other traders leave a comment to thank me for my advice really motivates me to continue sharing knowing I have made a difference to someone out there who I’ve never met, and maybe never.
This is the most powerful ruler.
DNS: a lot of people think it’s cool to be independent following. You can get your own experience in the timing of the entertainment. What I have to say that this system has people. Is it accurate?
The part about having the freedom to do what you want minutes, but struggle during the flight is very real.
If you want to trade, I don’t recommend you just quit your job trading full time. This is because you will always be facing the loss of weeks or even months. Instead, keep your day job and trade on the side. This could be additional income which does not require a lot of your time. Hours a day should be enough if you know what you are doing.
DNS: any regrets that may have being a trader?
One thing I realize that there is a whole world out there. When started for the first time I got stuck in the tunnel vision of thinking that trading is all there is.
But when you have a website, and you can interact with others, you realize there is much more than just trading. There is philanthropy, marketing, business and create value for others, make a difference to others.
It’s not really a regret but I wish I knew earlier on that there is more to life than trading.
Learn how to trade…is a journey
After having listened to Rainer, one of the things that hit the United States to learn how to trade a long and often arduous journey that can take years.
Rainer began his journey by learning how to manage risk while trying out different trading strategies. During this time, he focused on keeping his losses small while constantly improving my trading strategy. After some time, he found the trading strategies that worked well for him.
If you are new to trading and especially if you started it as a side hustle, we strongly recommend that you start with a demo account first. A demo account allows you to become familiar with the different available tools and strategies that you may want to use. IG allows you to hone your trading skills with $ 200,000 value of the virtual money first , before you put actual money in your craft.
Learning is also a never-ending journey when it comes to trading. Aside from reading articles or join online courses, webinars, seminars on the IG Academy to learn more, the IG community is another good way to exchange ideas, discover new products and discuss market opportunities with the business understanding and learning them.