So you want to be a trader! Many people have tried, but very few people have succeeded. When you think about it, who wouldn’t want to be a trader? Here are just a few of the positives of being a trader.
- A trader can wake up and just go to their desk when the market opens and start to make money.
- He or she can work from anywhere with a computer and an internet connection.
- You can set your own hours and schedule.
- There is no limit on the amount of money you can make.
It seems like the perfect profession, doesn’t it? Well… if only it was that simple!
If you consider what it takes to be a doctor you must think of all the years of school and postgraduate training that they must complete, not to mention the cost. It will often take 10 years or more to be a doctor. I highly doubt someone is doing heart surgery after four years of college. The point here is that it takes time to become a true professional. Other professions such as lawyers, accountants, engineers and others all take time before you make the so-called “big money.” Although most people don’t seem to recognize this for face value, the same concept applies when trying to become a professional trader. There is an immense amount to learn in this business and it will take time. I still shake my head at how many people enter the trading business expecting to make millions of dollars in one year when they have no clue what they are doing.
Here is one thing that you must have in order to survive the first year as a trader, capital or money. Like tuition for an education, you need to have enough capital to survive the learning curve. It will take about a year to really figure out what type of trader you are comfortable being. So often, I see people entering the trading world not having enough capital on hand to last more than a few months in this business. In the first year, if you lose only a little bit that is a major accomplishment. Just like the heart surgeon has to learn his trade before cutting into a human body… a new trader should spend money getting educated in the understanding of chart reading BEFORE trading! When you learn to read and understand the charts, you will start to have an advantage in the market when placing a trade. The better the odds are the more success you will have as a trader – placing the odds in your favor is everything in the trading business. Next, when placing a trade as a new trader you must use small share size. If you do this you will not become emotional over a loss or holding a position that might be going against you (hopefully before it goes in your expected direction). I have seen a big loss take the heart out of many novice traders. Big losses are the kiss of death in this business. This again is the reason why a trader needs to get educated.
When I first entered this business I had to have a second job. I simply needed a steady dependable income to keep me afloat while I went through the learning curve. This also allowed me a chance to enter new trades and to to not stress out about my losing trades. I knew in my heart that I would eventually figure this business out and become successful, but it sure took more capital and time than I originally thought. The moral of the story is this, do not take the stock market lightly. You can certainly make millions from the opportunity that is in front of you when you begin to trade. However, if you do not educate yourself on what it takes, you can lose your money faster than it came in. Be smart and do not become a statistic.
> Bullseye Trading has now booked 17 consecutive winning trades without a loss. Check it out here!