I’m the best trader in the world! Ha-ha, ok, I’m a good trader, always hustling.
This blog is designed for people who are new to the markets or interested in starting, it’s my opinion and not created to influence you.
That’s the point, each person is an individual and should trade so, uniquely. It’s not an exact science for sure.
We live in the age of conspiracy theories, too many to mention.
The world is changing fast, like the rate of internet speeds. One theory that I just don’t buy is, “you can’t make money trading”.
You can, I do and the reason why, is that I do it my way.
Yes, all investments carry risk, I won’t try to disguise that. After a long career, I’ve seen it all, big winners & big losers.
What do I mean?
The biggest reasons, new traders fail in trading, are the seven deadly sins.
pride, greed, lust, envy, gluttony, wrath, and sloth.
This is an easy one, by the way, I’m going in the order the sins are listed in the Book.
I’m new to trading, I know it all and I will trade and make money. Some may do but most don’t.
Pride and ego will stop you from getting valuable information from experienced traders & investors. There is a learning curve to success, no short cuts, so, curtail your pride and adapt. Eventually you will find your style.
Yeah, sure! (scam advert)
I recall a new trader, making numerous gains daily, couldn’t do no wrong, but, as he kept upping his stakes, he took bigger risks and then, bang, the market corrected overnight. Wipe out.
Trading for pleasure, if you have funds to speculate that’s great, but a common mistake of newbies is that they stick to the same things, win, or lose they don’t take stock, revisit their ideas, strategies. So trade like it’s your business not your hobby.
Emotions cloud judgment - why start trading? to make money, obvious. What are your realistic expectations ? that’s the hard thing to comprehend.
You can’t invest $250 and expect to make big returns if any returns. People who want to trade to make fast money will lose, people who learn will earn. Even if they lose at times, adapting and revisiting mistakes is important but the emotion or sin of greed, often derails the trader. There is a simple strategy that successful traders follow, make 1% return and be happy. If you can make 1% per day by 5 trading days x 48 weeks, that equates to a 240% return per year, not bad, right!
Another emotion to overcome, we are all different, we all have different knowledge and experience, and we all have different wealth. A new trader may be tempted by some outrageous headlines, usually endorsed by the unregulated brokers out there.
Become a millionaire trading Crypto! Get 100% Bonus. Free signals with 100% success. Don’t be tempted by these, the biggest killer of any trading account, reference Forex, is leverage. The bigger the leverage the higher the risk. So, understand leverage before you consider increasing it.
By the way, if you see an add from a famous person endorsing things like crypto’s, they are fake, beware!!!
I recently wrote that if you invested in Tesla stock ten years ago, for the sum of $5,800, it would be worth a million today. I didn’t, I am envious? For sure, but not every stock will rise like that, so, for a trader, he doesn’t get jealous, he gets even. Perhaps by shorting the stock and making gains in the future. Opportunities come, so patience is the virtue, seeing mates, make a lot of money on Bitcoin, for an example, doesn’t mean everyone has or will, entering at the top may be a big mistake.. Curtail resentment and start using informed decisions to achieve your personal goals.
Ok, this is like greed, but in the context of some new trader’s, the more they win the more they risk. Many newbies get so hooked on the trades that they don’t take a break and burn out. I recently spoke to an old client of mine and she said that she eventually stopped trading because it started to impinge on her career and she couldn’t control the addiction. Like overeating, overtrading has big risks, the market will be their tomorrow. Take a break.
We can put this in many contexts, anger at losing, anger at missing an opportunity are two points.
When you read comments on social media about scams etc.… a lot of the people have lost money. Naturally you would be angry, however, if they traded with a reputable regulate broker, who didn’t seek to manipulate them, then usually the losses are incurred because of lack of knowledge about trading, or patience, with reference to taking big risks to get big gains fast.
Trading without a plan is risky, especially in leveraged trading, where a small mistake can wipe out previous gains quickly.
Finally, my favourite, I’m sitting on my desk in my underwear, knowing I need to exercise and do some work. Yes, I’m often lazy, but not when it comes to money. With reference to a new trader, there is legwork to do to become successful. From practicing, understanding a platform. It often makes me laugh when I recall one trader, who invested big, didn’t know what stop loss/ take profit is until I pointed it out, he was actually lucky because he let a trade ride for a few weeks and made big gains. Conversely if the market had gone against him, he would have wiped out the account.
Yeah mate, likely!
So, like any new venture, to begin to trade needs a commitment to learn the nuts and bolts. It’s impossible to learn every aspect of the markets and guess correctly each time but avoiding the basic mistakes at the beginning gives a new trader a fighting chance.
Ok, sounds like I’m preaching, the moral of the story is that if we can overcome basic sins in trading, success improves dramatically. Each person is unique and so are traders, try to find out who you are in terms of emotions and strategies. It’s a bit like marmite, you either love it or hate it, but don’t overindulge.