Ok, so let’s talk…
You’ve gotten quite a few emails from me over the last month. Given the open rates of my emails, arguably too many.
That said, some of you have consistently opened my messages and even watched the videos.
It’s you that I’m talking to now.
I assume that your consistency suggests that you’re not only interested in trading, but you developing a taste for my specialty…
Day trading.
That’s awesome and I’m glad to see it.
But a bid of a reality check.
Maybe you are not cut out for this…
Not everyone can be a surgeon, a dancer, or a baker.
And not everyone can be a trader.
All of these occupations require skill.
High level skills, but skills nonetheless.
They can be developed… but they take time. And effort. Lots of effort.
So the question to ask… Is day trading really for you?
We (both you and I) need to know if you’re really cut out for this. If you find that you’re not, the best advice I can give you is to delete this email and stop opening any additional emails that come from me (my email responder is set to automatically delete subscribers after a certain number unopened emails, so I’ll certainly stop bothering you after too long). Taking this track will be far better for your wallet and, more important, for your mental health.
So how does one know if they have the right “stuff” to become a trader? I can only tell you what I think makes a good trader... then you can judge for yourself if this fits you or not… Or if I’m right for that matter.
I think the most important thing that I have seen in successful traders is an ability to accept the unpredictability of markets… and that as traders, we’ll be wrong a lot more than we’re right.
We never have enough contracts on (or left) on the winning trades. We have too many contracts on losing trades... We should have opened the trade earlier and/or closed it later… You get the point.
This is not a business for perfectionists. For people who need to “always be right.”
The business of trading has two primary parts to it... the first is intellectual... you must study and figure out what works (for you) in trading. There are many different approaches to trading and almost all of them CAN be profitable.
If you execute them properly.
The second leg of trading is emotional. I call this Emotional Capital. If you get this right, you have a better than 50% chance of becoming a profitable trader.
Just because you understand the markets at an intellectual level doesn't mean you’ll be profitable. When I have a trade go against me, I get annoyed. When I mistake, I get really annoyed at myself. You will too. You have to have the ability to manage your emotions to succeed.
There seem to be two critical elements. The first is your ability to focus and do what needs to be done. Can you stay on task? Can you handle basic steps and processes without getting distracted? If you answer yes to those, you can probably handle the day-to-day dealings in the market.
Maybe…
And unless…
Unless you’re too emotional and neurotic. Do your emotions run from hot to cold? Do your emotions bounce all over the place? Do people tell you that you fly off the handle or do you have large emotional swings.
If so, I don't think you should be trading.
A good trader must be able to handle his emotions, not letting them take control. If that happens your emotions will make you do things that you don’t plan to do… or even think that you would.
A final point here on emotions is that I think you must thoroughly enjoy what you do. It doesn't matter what it is. If you thoroughly enjoy trading then there’s a good chance you should be a trader.
Also, do you have an unrealistic expectation that you can make $1,000,000 in a year starting with $10,000 by just attending a seminar? Then please… don’t become a trader. This is not an easy business; the highs are wonderful but it also has lows. All the money in the world is not worth making yourself a basket case.
What I love about this business is that our opportunities to the upside are unlimited. My grandfather went to work at a brick yard every day of his life knowing his income would not exceed a certain level. I know why he did that… but how he did it is beyond my comprehension. When I was in my last years on Wall Street, my admiration for him skyrocketed (again) when I realized just what he went through.
As a trader you can create a profitable business, on a full or part-time basis. Best of all it can be done without any employees, without a boss, without a commute and not even any customers! That's what attracted me to this business years ago... and if you have what it takes, I hope it attracts you as well.
