David Materazzi is the CEO of Galileo FX.
Like any serious profession, trading demands real preparation, emotional resilience and practical tools. Yet too often, people approach trading with blind optimism or a get-rich-quick mindset. They confuse access with readiness. The internet has made it easy to open a trading account, but that doesn’t mean success is equally accessible. Just like I can’t wake up tomorrow and become an NBA player at 36, most people won’t succeed in trading without the right foundation of basic knowledge.
Emotional Control Is The Price Of Admission
One of the biggest myths I’ve seen is that you need a high IQ to be a good trader. That couldn’t be further from the truth. What matters is temperament. Can you stay calm when your positions are turning against you? Can you admit you’re wrong and cut your losses?
The reality is, you don’t win in trading by being the smartest person in the room. You win by being the most disciplined. You need to be proactive, not reactive. Before you enter a trade, you need to know how and when you’ll exit, win or lose. The traders who lose the most money are the ones who go in with hope instead of a plan. They say, “Let’s see what happens,” and they get wrecked.
Emotional discipline isn’t optional. If you’re trying to force your beliefs on the market or can’t handle being wrong, this probably isn’t the right path for you.
Trading Is A Meritocracy
In trading, you either perform or you don’t. That’s why I love it. You’re not rewarded for who you know, how many followers you have or what school you went to. You’re rewarded for doing the work and making the right calls.
Some critics argue that traders don’t create value. I disagree. We bring liquidity and price transparency to the market. The more traders in the game, the narrower the spreads get, and the easier it becomes for everyone to participate.
And let’s be clear, trading ethically is not a contradiction. If you’ve done your research, taken your own risk and made a profit based on your analysis, you’ve earned it. There’s nothing unethical about that.
Educate Yourself (And Not Just On Social Media)
Would you go to a doctor who learned everything from YouTube shorts? Then why would you trust your life savings to someone selling you “signals” on Instagram?
Professional education matters. You need to learn from people doing it, not just talking about it. That means looking for traders who have real experience, who’ve been through tough markets and who explain things clearly because they truly understand them.
Too many people follow influencers who don’t make their money trading; they make it selling courses. That’s a red flag. Ask yourself: How is this person making money? Are they helping you, or selling you a dream?
Also, study history. Markets don’t repeat exactly, but they do rhyme. Crashes, bubbles, greed, fear—it’s all been done before. The DNA hasn’t changed. If you understand what happened in 1929 or 2008, you’re better prepared to navigate what’s coming next.
Tools And Infrastructure Matter More Than You Think
Trading is a game of milliseconds. The difference between profit and loss often comes down to the quality of your tools.
This isn’t something you can do on hotel Wi-Fi or from your phone on the beach. Professional traders pay hundreds of thousands (sometimes millions) for direct data cables and premium terminals. Why? Because faster data and deeper visibility give you a real edge.
Even at a more basic level, a business-grade internet line, a desktop computer with a wired Ethernet connection and access to real-time market data should be the minimum. Free charts are often delayed by several seconds or more. That delay can cost you.
You also want access to order book depth (level 2 data), not just the last trade price. Knowing what large institutions are doing in real time before the news breaks is invaluable. That’s why professionals pay for platforms. They’re not buying data. They’re buying speed.
Automation Helps Take Emotions Out Of The Equation
Automation is no longer just for institutions. Smart retail traders are now using algorithmic tools to execute their strategies faster and with more discipline.
The beauty of automation is that it removes emotion. You’re not buying just because it’s a “green day” or selling out of panic. You’re acting on a plan. That’s the difference between gambling and trading.
But let me be clear: Automation isn’t magic. You still need to do the analysis, define the rules and monitor performance. The software is just an extension of your thinking.
Manage Risk Or Prepare To Lose
If I had to give just one piece of advice, it’s this: Focus on limiting your losses. That’s it.
Don’t chase home runs. Don’t fall in love with a stock. And definitely don’t let pride override your strategy.
The traders who succeed are the ones who keep their losses small and let their winners run. When a trade starts going against you, the best move is often to get out fast and reevaluate. If you’re wrong, you’re wrong. Don’t double down. Don’t look for reasons to justify it after the fact. That’s how people lose everything.
Be Ruthlessly Selective About Who You Listen To
This might sound harsh, but it’s true: Most people in trading lose money. So if you’re listening to “most people,” you’re listening to losers—statistically speaking.
Instead, find the top 1%. Learn from people who’ve been through the fire and come out better for it. That’s what I did. When I started my company, I didn’t listen to random voices online. I studied what the best visionary leaders were doing, people who had wrestled with the same questions I had, just on a much bigger scale.
In trading, success is possible. But only if you treat it with the seriousness it deserves.
The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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