The PATH to Trading Profits

 

 

 

 

 

Trading is not a path to easy money, only about 10% of traders are profitable in the long term and I assure you that you will be playing against professionals and they know how to win. No one goes up to Michael Jordan and asks him how they can make some quick money in basketball but rich traders are endlessly asked for some tips on making easy money. The vast majority of rich traders have spent a decade learning how to make money in trading, this is not an easy path. However once you have the skills, the knowledge, the capital resources, and desire to trade for income or capital appreciation then you can make more money than your day job ever provided. But unlike your day job you can be paid on Friday and have the market take those profits back Monday. Trading is not for sissies, you have to handle losses and roll with punches. You have to learn how to lose a little and make a lot. It is the most rewarding career on earth if you put in the work.

There is no elevator to success in trading, you have to take the stairs.  Homework, Discipline, Passion, and Perseverance wins in the long term.

Homework: study, read, research, contact winning traders, look at why the amateurs lose. Discover what really makes money int he markets. Learn what style you are comfortable with. Learn how much ‘heat’ you can take on losses. Never stop learning, your best competition never stops.

Discipline: Once you have the right method, a system that fits you, and a trading plan then you have to follow it as you decided to before the trading day begins. Do not under estimate the difficulty of this part of the process. Your emotions do not want to feel the pain of losses and your ego does not want to be wrong about a trade.

Passion: You have to love trading and the markets, you have to have a very strong desire to be in this business. If you do not have love for trading then you will quit early because that is what anyone with common sense would do when they take their first long string of losses and really understand the the cost of effort and pain to get to the top 10% of all traders. The top 10%  know they will be the winners when they start trading, time is their only barrier to entry.

Perseverance: There will be many times your family, friends, your own common sense, your ego, and your emotions will tell you to quit, it is impossible, no one really makes money trading, it is gambling, or you will grow worried in the early years that you are just wasting your time. If you really want to be a successful trader then listen to your hope, dreams, and vision when they say in a soft voice “Let’s keep going, we can do this”.