Are you really ready to make a living trading?
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Thread: Are you really ready to make a living trading?

  1. #1

    Are you really ready to make a living trading?

    In this post I will share with you some interesting thoughts and statistics basing of information from my last webinar named Self-coaching for traders

    Trading is performance oriented discipline like individual sports, chess or music. There are great traders (like great athletes), but also there are plenty of struggling people in trading – people who lose money, people who struggle to breakeven and finally, people who know how to earn money, but can’t be consistent with it.
    Researchers were interested in uncovering laws of performance long ago. Why one is capable to keep performance at high level while others can’t? Motivation and persistence probably are not the only keys. We know a lot of examples of hard working people never achieving remarkable success in chosen field. So, it’s not just about hard work. So, what is it about?

    Your trading niche

    First of all, top performers have found niche that fully captures their talents and interests. For example, Michael Jordan is a basketball, not tennis or golf player. Famous musicians are also great achievers (although there are multi-instrumentalists) only in a single field. For example, there are great bass-guitar players like Stanley Clarke, Marcus Miller, there are also great guitar players like Joe Satriani, Carlos Santana.
    Why trading should be different?

    Dr. Brett Steenbarger, one of world well-know trading psychologists, notes that every top trader is operating in very particular niche. For example, there are long term traders, that employ weekly charts (Peter Brandt) to capture significant movements, there are short-term traders, that work inside 1-3 days timeframe. There are also scalpers that need frequent action to succeed.

    When trader finds his niche, his learning curve accelerates and he finds himself in the right place in the right time.
    You can attend a formal education, when somebody tries to teach you his trading system. But I will tell you, that odds are pretty low that you will be capable to trade in the same way like your teacher. Formal education can lead you to some level of skills but if it’s not your niche, your results unlikely will be outstanding even if your mentor is a top trader.
    We know many examples, when trader, who was looking over the shoulder of a supertrader, was absolutely unable to do anything similar on his account.

    So, finding your niche is first and essential step for success.

    I would recommend you to try as many trading styles as you can, if you are just starting.
    To be more specific, you can try short-term price action trading, swing trading on daily charts and other styles. Journal your feelings and observations. What trading style seems to have «your name on it»?

    Finding your niche can be elongated but it also can be shortened if you are not sabotaging yourself. According to statistics, it takes 1-3 years to identify your niche.
    Last edited by Value trader; 12-25-2013 at 06:58 PM.

  2. #2
    Competent trader

    After you have trading niche that gives you motivation and calls for you, you already can request for formal education. You can address the right mentor. Search through the web – who trades in your preferred style? In this phase you already will be interested in studying specific steps, nuances and features of your preferred trading system. But beware of scam that is wide spreaded through the Internet.
    In the phase of building competence, you will expect to gain specific habits and skills that will allow you to at least be able to cover your costs (achieve breakeven point). Some will arrogantly note that «it’s not that we want to achieve».
    Yes, but remember famous quote of Mario Puso’s Godfarther, «First survive then prosper». Trader must learn to control risk and cover his losses.

    In this phase, you will need to learn to manage your capital, to avoid overtrading and doing popular mistakes, to keep your losses small and your stops reasonable and many, many other things.

    Primary focus of this phase is your behavior.

    Only after you will master all required habits, you will be ready to enter the expert performance league.
    It will take 3-5 years to develop competence.

    Expert trader

    Decision making process of expert trader becomes mostly unconscious. In this phase, trader automatically and intuitively knows where good opportunities occur and trade-off them.

    Expert trader starts to feel market and to read market sentiment much better that competent trader.

    Primary focus of this field is working with psychological states.

    Expert trader no longer struggles to follow his trading style, but he already can anticipate – what the market will likely do? Connection between trader and the market is much deeper in this phase.

    There is interesting example from life of George Soros, when he was feeling pain in his neck, if market was ready to something messy. This level of connection is unconscious and it’s not uncommon for expert traders. They may even not be able to explain their best trades – you can’t explain your unconscious decision in 1-2-3 steps.
    But you should first build competence before ever considering being an expert.

    And remember, that you have much greater odds to be an expert in your personal trading niche. You can’t be «market expert» in whole.

    I think, building and sustaining expertise is a lifetime process.

    Bottom line:

    So, before intending to trade for living, be honest with yourself and estimate – what phase you are operating within?

  3. #3
    Already Every beginner should be preparing himself well in the beginning on the demo account before it opens real account because the forex needs to be experienced enough at first because the proportion of risk may be very high in a lot of times in the market

  4. #4
    I am trading about 6 years, and i like any other trader in the beginning thought that I can be profitable and that i can be full time trader and live from incom form forex, after just one year. But actually the truth is that maybe 99 percent off all traders in his first two or even 4 years are non profitable.

  5. #5
    Very true, indeed trading performance is influenced by discipline i know this from experience. I was once a trader who could not keep profits, but i could make them but not keep them. But from further studies i got to know that being disciplined in trading with small lot size will give me consistent and constant profit. So i am indeed ready to make profits because i am now more disciplined and not greedy.
    Last edited by jonking; 09-29-2013 at 07:07 PM.

  6. #6
    Join Date
    Sep 2013
    Sure i am ready, sir. I traded more than 3 years and found out forex is really good for my living income here. There is no matter how hard to achieve success but i will fight till the end and it is difficult for me to give it up. Sometime i feel forex is just like addiction there.

  7. #7
    Quote Originally Posted by topman View Post
    Sure i am ready, sir. I traded more than 3 years and found out forex is really good for my living income here. There is no matter how hard to achieve success but i will fight till the end and it is difficult for me to give it up. Sometime i feel forex is just like addiction there.
    What I am sure that in first year of trading it is not possible to make consistent profit. But one of the turning point for any trader is actually loss. Loss is force every trader to invest more time in learning and changing bad traders habit. Trading for a living is the last phase for every trader, and it is not easy to achieve that level of successfull trading, and for sure for that we need a lot of experience.

  8. #8
    I have been trading for last 2 year. And i am getting profit. Now i am ready to make my living trading. i did a lot of struggle to become good trader. My first year of trading was good because it was learning year i lost a lot money but i learnt from demo account. And now i am successful trader. Patience play important rule in success of Forex. If we are not greedy and and everyone can trade with patience then we will also ready to make living trading.

  9. #9
    Join Date
    Sep 2013
    This is a very good lecture our educator. One thing i use to tell all new forex traders that comes across my way is that they should start from the beginning and pretend that they do not still know anything, rather than starting from the middles and still argue with the experienced traders. In other words, forex trading takes steps, and it will be bad of nay traders to jump nay step to become great in the market.

  10. #10
    Trader dkarev's Avatar
    Join Date
    Aug 2013
    personally for me,i am ready to take Forex trading as mine full time job,the good thing about Forex trading is that one can surely make big profit in the market if you are having the right attitude to the market.though i have being making little profit from the market and i hope to make more big profit as well when trading the market.

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