The number one question I receive on a constant basis from stock traders is “How do I become successful trader?”
The reality is 95 % of stock traders fail. You can make a winning trade now and then, but over the long haul, most of traders end up blowing there account.
The good news however is that the reason most traders fail can be avoided. The question really boils down to are you willing to do what needs to be done in order to separate yourself from the rest and succeed?
I believe it is a safe assumption to make that 99 out of 100 traders would answer that question with, Yes! I am willing to do whatever needs to be done to succeed! The problem is, due to human psychology, it is not as easy to do as it may seem.
The Thought Process of a Amaterur Stock Trader
You make a trade and score a big winner. At this point, you feel on top of the world and like you have this trading thing all figured out. This is totally understandable given that is a natural human emotion. Your thought process is going to follow along these lines:
Made Money >>> I Know What I Am Doing >>> In Order to Make More Money, Must Spend Money >>> Enter Into New Trade
For the Trades where you lose money thought process be like I need to make it back” -ugh! That is a cruel cruel mind trick as more often times than not, it causes us to make even more bad decisions with our money.
Lost Money >>> Need to Get Money Back >>> In Order to Get Money Back, Must Spend More Money >>> Enter Into New Trade
While you may think the first thought process is correct, I’m here to tell you that neither of them are correct. These two thought processes are what I like to refer to as the Viscous Cycle of Failure.
The Viscous Cycle of Failure in Trading
Let start with Basic What do you think an Engineer, Doctor have in common?
They have developed Skill Set be getting Formal Training before getting a Job
How can be a Stock trader
There is no barrier to become a stock trader besides having money to trade,broking account and your probablity of Winning at 50%
Do you think it would be wise to allow a lawyer, doctor to start a career in one of those fields without any kind of education or training? Imaging being treated by a Doctor who has not gone through any formal education.
So then… why in the world do people think they can just open an online trading account and have consistent success with no training or education!?!?!? (Keyword: consistent)
Your Strategy Should Not Be Scattered and Confused
- My strategy feels very random.
- I don’t have confidence.
- My strategy lacks a unified plan of attack.
- I am looking to transition to something new.
- I struggle to follow my disorderly rules.
- My strategy seems muddy and unclear.
- I have good ideas but can’t turn them into profits.
- I have drifted from my trade plan due to emotions.
- I am having trouble getting consistent results.