Trading is not for everyone – strategies are learned, but not everyone has the right mindset for it
I know this will sound very awkward; trading is not for everyone. I will not mince words; I will be brutally honest with you here. Trading is not for everyone, it is for those who develop the right mindset. Trading will require a lot of discipline and hard work. I know many think trading is the easiest way to make money but it’s not. For the perfectionists who prefer a clean sheet, this is not your place. There will be losses and there will be gains along the way.
Trading is not the place to invest $20 and expect to be earning thousands of dollars. You have to invest $ 10,000 and above to make a decent return without risking a lot. The amount invested should be an amount that you can comfortably afford to lose. Before jumping into the real market, please demo for about three months. Test your system and discipline, when you have seen consistent results in Demo open a trading account and begin small.
If you are successful in trading a demo trading account, the same may not apply to the areal account. It is easy to succeed in demo account and fail in real account. One of the reasons why people fail to show the same results on a real account is because dealing with money comes with emotions. You are very much attached to your money; therefore, your performance may vary. Secondly, dealing with a demo has no risk. If one demo is blown, you simply open another. Thirdly, when a stop loss is about to be hit on a demo account, you will just leave it without tampering. But with real money, we the humans will tend to drag it away hoping things will get better.
When beginning, trade a single item at a go. Avoid being in different markets until you have enough skills. If you are speculating on sugar futures, then work with that only. It allows you to concentrate in one area which is easier for beginners. Being in different markets at the same time will confuse you and slow your learning process.
Statistics indicate that only 10% of traders make it in trading and about 15% in options and stock. Trading, in general, is for the ones who are willing to do the extraordinary. If you are 50/50, please leave trading. Trading will require a lot of hard work, dedication, adaptation and continuous learning. It is a rewarding career that gives those who succeeded in it freedom and returns.
Having said that, do not be so quick to quit. By saying that forex is not for everyone doesn’t mean you should quit at your first challenge. I know sometimes we can be pushed to a point where we just want to abandon the whole thing and try something else. There is a famous story of a miner who gave up when he was a few inches from striking gold. Success is for those who don’t easily give up. When you are about to quit prematurely, remember the following:
- Why in the first place you got into trading, what attracted you that you had to make that decision? Remembering that will likely ignite the fire you initially had.
- Have a mentor, read their stories and what they went through to be where they are. The encouragement derived can work a long way in achieving your dreams.
- Remind yourself that trading is not a get rich scheme. It will require time and skills.