By Rob Colville on September 14, 2017 in
You want to trade. There is a feeling inside of you that makes you think you could be good at this. No – you will be good at this. And so you go ahead and do it. You put your money where your mouth, your head, and your heart are. Yet you do badly. So you change strategies because something is still telling you that trading is the way to go.
Still nothing. Or worse than nothing; you’ve lost it all. Is it time to give up altogether and accept that you just can’t be good at everything?
The feeling that you want to trade doesn’t automatically mean that you should trade. You really do need to weigh up all the pros and cons of the decision before spending any of your hard earned and hard saved money. Equally, however, just because you keep losing, it doesn’t mean you’re no good at trading – it could just mean that you’ve not yet found the ideal way for you to trade well. Everyone is different, and trading strategies and techniques that work for one person could spell disaster for the next. This is why research and patience are key ingredients in getting the most out of each and every trade.
If you haven’t been having much success with trading and you feel as though you might want to give it all up and move on to something else, it’s a good idea to remember why you wanted to trade in the first place. Remember what drew you to the trading life – the idea of not having to answer to a boss, of having freedom to go and do whatever you want, of enjoying the perfect work/life balance, of having potentially unlimited income… These things are incredible, and achievable, and only if you are truly happy to give up this ideal should you give up on trading entirely.
If you waver between continuing your trading journey and giving up, you need to remind yourself with you want to trade. One way to do this is to read up on successful traders. This will prove to you that others have found a way to achieve that financial freedom, and will motivate you to find your own way of doing that through the markets. It’s a good idea to step back from trading while you are doing this research. Give it a bit of a break, recharge, get inspiration from those who have been there before, and then go back to it when you know again why you want to trade.
Okay, we don’t mean forget about all the money. We just mean forget about using trading as a get rich quick scheme, because it’s not. That’s just not how it works, and if you do into it with that in your mind, you will find yourself becoming jaded when you lose money. And you will lose money – everyone does. If you are trying to make a lot of money in a short amount of time through trading then you will likely trade too often using too much money. This will not end well.
One of the most important pieces of advice anyone can give or receive when it comes to trading is to make a trading plan. No matter how much you want to trade, without a good, stable plan winning and losing will all be down to luck.