Trading isn’t easy, especially if you’re trading for a living.
No matter how simple, powerful, and proven a great trading system is, there are always going to be times when your fortitude is tested. There are always going to be times when the market chews you up and spits you out.
At such times, you have to make a decision regarding just how determined you truly are to succeed at trading. You have to ask yourself, “How much can I take and keep moving forward?” You have to look in the mirror and ask, “Do I want to quit?”
And that’s the way it should be! If it was always easy, everyone would be doing it.
It’s no secret that MOST of the greatest traders throughout history hit rock bottom before they became millionaires and billionaires. Everyone from Nicolas Darvas to Richard Dennis to Paul Tudor Jones have had moments where their accounts dwindled to the brink of despair and these traders had to ask themselves, “Can I go on or should I throw in the towel and move on to something else?”
Trading, like life, is all about perseverance. How driven are you? How focused are you? What are you willing to go through in order to succeed?
Throughout the November , the market has been frustrating to Trend traders due to its choppiness. Right when the market has shown signs of an uptrend, it has quickly reversed and humbled many traders.
This is nothing new, of course. Trend traders have been dealing with these choppy periods for more than 100 years and the data continues to show that, in the long run, the frustration endured during choppy markets is well worth it due to the huge rewards achieved during a trending market.
Of course, knowing this fact doesn’t always make it easier when you’re dealing with a roller-coaster market and getting stopped out of “by the book” trades.
But this is where we separate the successes from the failures. Most people will let their frustration get the best of them. They’ll throw in the towel and conclude that trading is just too difficult of a path to wealth.
But a few traders will persevere.
People like Nicolas Darvas, who endured nearly seven years of devastating setbacks when first trying to conquer Wall Street, will continue the game because they’re determined to win it. They won’t give up because they’ve seen how other traders traded their way to millions and, in some cases, billions. They’ll conclude, “If they can do it, why not me?”
That is the mentality it takes to achieve anything great in life.
When the going gets tough and the market gets rocky, I think it’s a good idea to reevaluate your goals.
Why do you want to be a trader? Why are you determined to win at this game?
Here’s a quick list on why I love trading and why I choose the world of trading as a profession. Perhaps you’ll agree with me on several of these points.
– The stock market is the ultimate vehicle for freedom and independence. ANYONE who works hard enough and smart enough can achieve financial and personal freedom in the stock market.
– The stock market is a place where no one can tell you that you can’t buy this or aren’t allowed to buy that; everyone has complete freedom to exercise their choices and take their shot at conquering the market.
– ANYONE with a brokerage account and a little cash can play their hand at the stock market and achieve unlimited success from virtually anywhere in the world. It doesn’t matter who you know, what color your skin is, what language you speak, what kind of education you have, what kind of financial background you have, what kind of neighborhood you grew up in, or what kind of family history you have. None of that matters! The stock market gives everyone the same opportunity to make their fortune and have their dreams come true.
– In the stock market, there’s no one way to make your fortune. Warren Buffett can make a fortune holding stocks for decades. Nicolas Darvas can make a fortune holding stocks for months. Buzzy Schwartz can make a fortune holding stocks for minutes. The stock market offers fantastic opportunity for speculators of all types to make their fortune.
– The stock market is a libertarian oasis. It is the great frontier on the grandest scale imaginable. It is an ongoing competition for the pursuit of dreams and total freedom. Everyone has an equal shot at making billions in the stock market. And there is nothing but willpower and perseverance standing in the way of anyone’s potential to do so.
– Trading offers the ultimate independence. YOU are the only one responsible for your success or failure. Every decision you make is solely up to you.
– Not only are all decisions up to you, but your potential success is unlimited. There is no cap whatsoever on how far you can go and how high you can climb!
– As a trader, you live a completely independent lifestyle. You can go anywhere, anytime, and live anywhere you want. You are in no way restricted by anything. As long as you have computer access, you’re good to go!
– And finally, trading is also the ultimate never-ending learning process. The hunt for the next great trade never ends! The more you read, research, and study, the better trader you will become. Trading rewards continuous intelligence expansion.
Anything I’ve left off? Anything you disagree with?
Every trader needs to ponder these questions to determine if they really have what it takes to make it as a trader.