When you first listen about trading for a living, you simply imagine that a very luxurious life with quite less work and making money everyday is what defines trading for a living. This often happens with many people who just have read somewhere or listened to few acquaintances talking about trading for a living scenario. I have come across persons who leave their well paid government jobs for trading for a living lifestyle and are very frustrated of themselves of not knowing truth before and falling for the easy money available on the table myth.On the contrary I have also come across people who never took any jobs as they were already determined for achieving their goal of trading for a living and they are doing it successfully day after day & year after year.
There are some very realistic facts which one should keep in mind while deciding to making futures trading , stock trading, forex trading or commodities trading as their main source of income for handling the payments of recurring bills through this income generated.
Assess yourself
Before getting all out for the trading career as a full time job, a very basic exercise for assessing oneself should be carried out. Trading involves the whole personality of an individual and therefore it is very important to make an assessment that how one could handle the various ups & downs of trading. This could be achieved by doing paper trading. In this way you do not put real money at stake and take positions. You just take trades on paper and follow all what happens after taking the trade. Analyse every aspect of the paper trade in the context of real time scenario. Think over of what could have gone through your mind if this was a real position. Try this thing for several days & several paper trades. You will surely be able to test your patience and aggressiveness through this exercise.
Losses Are Inevitable
A very bitter reality in trading for a living situation is that no one can evade losses while trading. Anyone who claims that he/she has never faced a loss while trading that person is just trying to act over smart. Losses are a part & parcel of trading and every trader has to accept this fact respectfully. No matter how much study you do and put in your 100% efforts, one thing which cannot be lied is that you will have to face losses. So be prepared for accepting losses in your trading.
Discipline Is Absolute Must
The foremost attribute required for successful trading career is discipline. Even a bit of deviation from discipline can have lasting effects on the overall performance of a Trader. Trading for a living is based on the foundation of absolute discipline. A Trader who is not disciplined is merely acting as a gambler. To put your money on the table you need stone carved rules to be followed and that too very religiously.
This is a slow process
Some people are of the view that as they start trading they will make money from day one and then they will have a cruising luxurious life. This is the biggest myth one can rely on. Learning to trade and achieving the stage of a Trader who could proudly say that he is successfully trading for a living consistently is a very slow and gradual process. The learning curve involved in trading takes several thousands of hours. To perfectly carve a niche in trading a good amount of patience is required. Before jumping on the assumption of easy money one should clearly give a thought about the process involved.
No Short Cuts Allowed
Amateur traders often have a tendency to find shortcuts for achieving success. This is absolutely not possible, trading in itself means following a proper path for the achievement of success. You will have to do the homework each and every day regularly to execute your plan. Different stages have to be followed which involve the creation of a plan, following the plan and executing it. Keeping a trading journal is one such task which helps in analysing the before and after of an executed trade. Taking positions in the share market is the last thing in the whole process of trading preparation. Before this stage a rigorous homework is required to come to the conclusion of what positions have to be taking. So one should be really ready to accept the truth that trading everyday is just like a full-time job.
Don't Go On Rumours
If you are in a dilemma of whether trading for a living is possible or not, never rely on narratives. Do not pay much attention to what others have to say. There are always a lot of rumours floating around about the success stories of big traders. Many people will say that a Trader has lot of free time on his hands because in very few hours he can make a lot of money and then enjoy the whole day relaxing. This can be possible but only for those who have dedicated lot of time in grasping the in and out of the whole game of trading. This lot of time means rarely around thousands of hours of study, of ups and downs of emotions, of frustration, of losses and disbelief.
If one could accept these six facts and then test his/her personality as per the rigorous requirements needed for trading and then finds that he/she will be able to overcome all the difficulties then only he/she should finally think about accepting the prospects of trading for a living.
Assess yourself
Before getting all out for the trading career as a full time job, a very basic exercise for assessing oneself should be carried out. Trading involves the whole personality of an individual and therefore it is very important to make an assessment that how one could handle the various ups & downs of trading. This could be achieved by doing paper trading. In this way you do not put real money at stake and take positions. You just take trades on paper and follow all what happens after taking the trade. Analyse every aspect of the paper trade in the context of real time scenario. Think over of what could have gone through your mind if this was a real position. Try this thing for several days & several paper trades. You will surely be able to test your patience and aggressiveness through this exercise.
Losses Are Inevitable
A very bitter reality in trading for a living situation is that no one can evade losses while trading. Anyone who claims that he/she has never faced a loss while trading that person is just trying to act over smart. Losses are a part & parcel of trading and every trader has to accept this fact respectfully. No matter how much study you do and put in your 100% efforts, one thing which cannot be lied is that you will have to face losses. So be prepared for accepting losses in your trading.
Discipline Is Absolute Must
The foremost attribute required for successful trading career is discipline. Even a bit of deviation from discipline can have lasting effects on the overall performance of a Trader. Trading for a living is based on the foundation of absolute discipline. A Trader who is not disciplined is merely acting as a gambler. To put your money on the table you need stone carved rules to be followed and that too very religiously.
This is a slow process
Some people are of the view that as they start trading they will make money from day one and then they will have a cruising luxurious life. This is the biggest myth one can rely on. Learning to trade and achieving the stage of a Trader who could proudly say that he is successfully trading for a living consistently is a very slow and gradual process. The learning curve involved in trading takes several thousands of hours. To perfectly carve a niche in trading a good amount of patience is required. Before jumping on the assumption of easy money one should clearly give a thought about the process involved.
No Short Cuts Allowed
Amateur traders often have a tendency to find shortcuts for achieving success. This is absolutely not possible, trading in itself means following a proper path for the achievement of success. You will have to do the homework each and every day regularly to execute your plan. Different stages have to be followed which involve the creation of a plan, following the plan and executing it. Keeping a trading journal is one such task which helps in analysing the before and after of an executed trade. Taking positions in the share market is the last thing in the whole process of trading preparation. Before this stage a rigorous homework is required to come to the conclusion of what positions have to be taking. So one should be really ready to accept the truth that trading everyday is just like a full-time job.
Don't Go On Rumours
If you are in a dilemma of whether trading for a living is possible or not, never rely on narratives. Do not pay much attention to what others have to say. There are always a lot of rumours floating around about the success stories of big traders. Many people will say that a Trader has lot of free time on his hands because in very few hours he can make a lot of money and then enjoy the whole day relaxing. This can be possible but only for those who have dedicated lot of time in grasping the in and out of the whole game of trading. This lot of time means rarely around thousands of hours of study, of ups and downs of emotions, of frustration, of losses and disbelief.
If one could accept these six facts and then test his/her personality as per the rigorous requirements needed for trading and then finds that he/she will be able to overcome all the difficulties then only he/she should finally think about accepting the prospects of trading for a living.
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