Recently Trading, specifically Forex has been a new trend that everyone wants to try, and seems to be the most convenient business to riches. Surely Trading Forex is a convenient business due to its accessibility, where you can literally start with no any whatsoever of qualifications rather than an id & proof of residence. Once most traders begin trading Forex for a couple of months, they now realize its surely not as such convenient to riches as thought to be.
Believe me or not, Trading won’t give you anything good in return, if you’re a person who really can’t comprehend this issue in a positive manner, for them to work in favor of you.
You’re a beginner Trader and trying to make a living out of trading full time,
Whoosh! Before you jump out of your pants, here is the truth and how it is. To succeed at this game of trading you should be able to treat it as an investment not as a daily business to make you a quick buck. Believe me I have seen a lot of people in my career of trading struggling because of this. At the beginning where you lack experience with trading and you are under capitalized, Trading should be a secondary source of income to you because, one you will not be as profitable as much since your still learning also due to your under capitalization status you will not be able to facilitate living with the small profit you get. Failure to take this seriously and just jump into trading with no a primary source of income as a beginner here will be your challenges that will land you to failure.
You will definitely over trade, you will do this because you have to achieve a certain amount of cash to facilitate living with your full-time trading. Trading should be treated as an investment a long-term thing where you will invest your money take good opportunities when they are available and make money out of them and not just trade because you need to pay rent or buy groceries.
You will definitely over leverage, Trading should be slow and steady meaning the strict use of risk management, now for an under capitalized full time beginner trader to make returns that will make sense to facilitate living he or she will have to use intensive leverage (take huge risks/risk more on their account) to get such returns which will be a reason for his/her failure.
Now before you get confused and think that you should stop trading completely here is the solution that has worked for me until to the point, I become a successful full-time trader. Firstly, get a side hustle that will pay your daily living expenses, then invest time into learning and becoming a profitable trader, manage your money grow it, while also increasing capital on your accounts from your side hustles too. Eventually in time your capital will grow through the profits you made together with the small deposits you where adding from the side hustle.
At this point ‘as the old saying goes’ success speak louder than words, Friends, Family and other people will get attracted to your trading performance you can then leverage your skills through money management and earn yourself extra cash from commissions you get through trading their accounts.
Disclaimer to money management ‘its not for the inexperienced trader who hasn’t proved to himself that he/she can grow his/her own money for at least one year successful, at first.
It’s a good extra source of income for the experienced traders with a clean track record of at least one year being profitable trading the specific assets of which he/she wants to manage money on.
Now when should take into consideration Trading live full time is until when your Trading business can provide for your daily living expenses, with proper risk management.
For example; Your living expenses are around $1000 per month. And with good proper risk management you can earn around 10% to 20% ROI per month with your trading.
You wont think trading full time until you account size is around $20,000 meaning if you get a profit of 10% ($2000) that month half of the profit will be equals to your living expenses and half of the profit will be left on your account to grow.
As I said earlier failure to that most traders try to force their small accounts to earn them a living leading to blow outs. Keep learning Get a side hustle to give you income to fund your account and provide you with living, grow slowly eventually you will enjoy the Trading business, “Trading is a marathon not a sprint” take things slowly.
You can’t withstand Losing Money.
I get a lot of whining from new traders complaining that there losing money and want to quit Trading. When I get such kind of complains they do irritate me a lot because, generally how do you think your going to be better at anything without losing.
In trading if you make mistakes you lose money there is where you learn and become better. I myself until to today I still lose money on some of my Trades, what sets me apart from losing traders is my trading has a systematic approach (methodology), my losers are well defined and my gains are way bigger than my defined losers. Click here to learn how I approach the Forex market, and make money consistently.
Generally, in my Trading career I have loosed thousands of dollars and made a lot more, so when I lose money now a days on a trade, I just understand it’s like I am paying rent of my business, I embrace it and try to learn from it. Never take the loses too personal.
Your Too Focused and Think of the money Only.
Obviously, you’re into trading to make money, the dream is always to earn money and live the lifestyle of our choosing and enjoy the freedom trading brings. I know those are some of the things that lured me to trading in the beginning of my career.
Almost 100% of people coming into trading are drawn in by the desire to make money and improve their lifestyle. Whether you want to admit it or not, Its even probably why you are reading this article now its because you think you can make a lot of money trading or you think trading can bring you an amazing lifestyle change. Hey, there’s nothing wrong with those kinds of thoughts and feelings because they ARE obtainable goals if you study hard, perfect your craft and manage to keep your bankroll intact long enough to live to trade another day and come out the other side profitable.
I’m certainly not hear to squash the dreams and ambitions of newbie traders (I was once one myself), but what I am here to do is help you achieve those dreams, and in order to do that we first must put these life-changing dreams and goals to one side and look at what’s actually going to get us there, we need to get smart, we need to be real and cut through the noise. You will only make money as a trader if you’re in this game for the right reasons and for most traders, at least in the beginning, they are not trading for the right reasons…
Do you love the money or the process?
Let me ask you this, do you REALLY LOVE THE PROCESS of learning about markets, studying and looking at charts and trading in general? Do you TRULY enjoy it? Or, are you just sort of slugging along because you think you can make fast money? For most traders, especially beginning traders, the honest answer is the latter.
In trading, as with any business Endeavor and life in general, if you aren’t IN LOVE with the process you are VERY RARELY (if ever) going to achieve the goal. Read that last sentence 3 times before you continue.
How can you make an honest assessment of whether you are in love with money or the process of trading?
Here are some signs that prove you’re trading for the wrong reasons
⦁ You’re trading money you can’t afford to lose. If you’re doing this, it’ because you’re too focused on the money. People who risk money they really cannot afford to lose are doing so because they want to make money fast and they are only thinking about the prize, not the possibility of losing that money. Bottom line, don’t trade with money you really cannot afford to lose.
⦁ You’re thinking only of money, not enough about trading or your trading plan or strategy. Trading really shouldn’t be all about ‘money’ to you. The money is just a way to keep score in a game that tests your ability to remain disciplined and patient in a world of constant temptation. If you are trading properly and focused on the process and excited about the process, you will make money and that money is like the score, if you’re score is going up, you’re winning, if it’s going down you are losing. Ironically, when you focus too much on the score (money) you end up losing
⦁ You’re already making plans of what you’ll do after you make XYZ money in the market, you only think about the rewards and not the risks. Like the last point, but a bit more specific; I know a lot of amateur traders who get super excited about the possibilities of what they will do with the money they make from trading. It’s great to have ambitions and goals, don’t get me wrong, but this cannot consume your thoughts. If you’re making plans of how you will spend money you haven’t made, your trading mindset is not right yet.
⦁ You trade for no good reason, even late at night before bed, pressing some buttons for the gambler’s endorphin release, you need to be in a trade. If you end up trading all the time, entering one as another one closes out, you don’t want to trade anymore, you NEED it. This is trading addiction and I can promise you that it will very quickly drain your bank account.
⦁ You get enthralled by the next biggest trading thing (Like crypto currencies, which by the way, I think bitcoin and the like is basically a Ponzi-scheme and I encourage people to stay away). Stick to major markets, major Forex pairs and major stock indices and commodities, don’t trade every market under the sun, this will cause you to over-analyse and over-trade and lose money.
Generally If you want to get fit and healthy and achieve your optimal body composition, you must fall in love with the process of working out and eating healthy, because if you don’t fall in love with it all, you will never continue to do the little things day in and day out that lead to the type of body you want. Same thing in trading. To get the money and the cars and houses and the life you want, the life that IS possible from trading, you have to love the process, the little things, the details, otherwise you’ll never stay committed to the discipline that is required. As they say, the devil is in the details.
Trading needs commitment before you think of trading understand the process of learning how to trade successful is hard and challenging so better be ready of the hurdles. Nevertheless, thank you for taking your time to Read this article please if you find it helpful comment your view below, share to friends, family and your social groups. Until next time Bye.