In my last blog post, I talked about what is the most important skill that a trader needs to have in order to be successful. Well in this post, I’m gonna talk about the biggest reason why traders fail. Before I tell you what is that reason, let me share with you my story and how I’ve become a trader for the last 17 years. Many of you may know my story so I will get straight to the point. I started trading in 1999 and I made money right away. In fact, it was during the dot com economy and you couldn’t lose any money buying any technology or dot com stock. So I didn’t slowly ease my money into the stock market, I plunged right in and I made a lot of money in a very short period. I quit my job and became a full-time day trader. However, the crash came in 2000 and I lost more than half my capital. I was devastated but I refused to give up. Perhaps it had to do with ego but I was determined to make back the money I lost. I didn’t. I ended up losing more money and was very inconsistent in my trading results. I was in a financial mess as my trading capital kept getting smaller and I had no income coming in as well. This lasted for 3 YEARS. In fact, I remember one week in particular, I contemplated giving up and told myself, “Mike, you tried hard enough and you’re just not a good trader. Just go back to the corporate world and get yourself a full-time job. Trading is not for you.”. I thought about how much work and trading courses that I took and it was a shame that I put all this effort in and give up. But the biggest question I asked myself is if I really enjoyed trading and it took me only a day to realize that I LOVED TRADING. It would always be a passion of mine irregardless of whether I made money or not. That day, I told myself. “Don’t give up on trading. Focus on what you love to do and keep improving on it. The results will come if you get good at what you enjoy doing.” After reading my story, I’m sure you now know what is the biggest reason why you aren’t a successful trader yet. If you have given up on trading, you will never be a SUCCESSFUL TRADER.
Many traders try to justify many reasons why they give up on trading. The THREE most common ones are:
- You lose all your capital in your trading account. If this is the case, go back to trading a demo account and build back your funds through your income sources.
- You are afraid of trading and losing more money. This is normal especially if you are on a losing streak. Take a break from trading and focus on minimizing your losses when a trade doesn’t go your way.
- You lose interest in trading and thought it was a get rich quick way. I hope this isn’t the main reason why you got yourself into trading. Trading could be a potentially lucrative career for you over the long term. Ask yourself “Do you give up on your career if you face some obstacles along the day?”
My simple quote to end this article, “Trading is a journey. It’s not about how fast it takes for you to achieve success. It’s all about reaching your final destination no matter how long it takes.”