Making a living trading on the stock exchange is quite a worthy desire of many motivated, talented and hardworking people. But before diving headlong into trading, honestly answer yourself 2 questions:
- Why do you choose the profession of a trader?
- What do you expect from stock trading?
In order to cut off the most commonplace and well-known answers at the start, I want to dispel two myths about trading.
Fast millions with minimal investment
Adult uncles and aunts also believe in fairy tales! Especially when they read on the Internet stories about how someone with 100 made 1,000,000 “green”. Why don’t we try to repeat their success? The option to get rich quickly, turning a small amount into huge capital, excites the minds and gives a new influx of “cannon fodder” for professional speculators.
I do not argue, purely theoretically and mathematically, this is possible by accelerating the deposit, capitalizing profits, pyramiding. Put in one deal a car, an apartment and your favorite dog in addition (to put it in a simple way to burst into the market for “the whole cutlet”), catch the recoilless movement of the market at 500-1000 points, and here it is!
On paper, all your calculations may look very convincing, but there is one big BUT! It is necessary that all the stars converge here and now. Are you sure that they will meet with you?
Do not flatter yourself! In the market, things work quite differently. Only those who have a sufficient initial deposit, tightly control their risks and hone their trading strategy of earning over a long distance earn a lot and stable.
Look at the results of the survey “How Much Can You Make in Forex?” And I think you will stop harboring illusions about getting rich quick from stock trading.
Complete freedom and independence
This sweet word is FREEDOM! Who among us has not dreamed of sending a hated job to hell with a boss, career intrigues and office squabbles?
How wonderful it is to get up in the morning whenever you want, knowing that you don’t have to go anywhere. Slowly have a cup of coffee or tea and sit down at the computer in a dressing gown and slippers. There is no need to prove anything to your boss or worry that your business will be covered with a copper basin if you lose all your clients. You are your own commander and boss. Your success depends only on you. Beauty!
Such a wonderful prospect of “freedom from trading” is undeniable. But I would not be I if I had not added a fly in the ointment to the barrel of happiness:
Before you start trading, remember that this work carries a crazy emotional and psychological load. Especially at the initial stage of your formation as a trader and with a large initial deposit. Are you ready for this? I assure you, it will take a long time until you polish your trading system, learn to adhere to the established risks, and eventually start trading like a robot, removing emotions from your trading.
The second unpleasant moment on the way to complete freedom is the presence of communications. In commercials and posters, you often see a trader sitting on a deck chair, laptop in hand, aboard his own yacht. It is good if there is satellite Internet that can be used everywhere and always. But if he also disappears? End of work and trade. This is another beautiful fairy tale about the fact that you can trade lying on the beach. It is my deep conviction that it is necessary to trade in a work environment and rest on vacation. As they say cutlets separately, flies separately Have you heard of such a thing as the “Trolleybus Effect”? When the whole business is tied to one specific person, it creates additional risk. There is a high probability that the onset of a random critical event (whether it be an illness or a trolley bus rushing towards you) in one second will endanger your entire business. If you do not have an autonomous trading robot that trades on its own, then the results of your trading activities and financial well-being are entirely up to you. To avoid the “trolleybus effect”, it is desirable to have a financial airbag for six months in advance, and even better to have alternative sources of income not related to trade.
Instead of a conclusion Freedom and money are cool! But in order to choose trading as your profession, this will not be enough If you look at the path of legendary traders, then one message can be read between the lines one must love stock trading, one must burn with it. All these people were attracted by trading primarily because they saw in it a great intellectual game and a competition with the best minds in the world.
If you are not afraid of my horror stories and are attracted by the prospect of “working not 12 hours a day, but with your head”, earning a living with your intellect, then welcome to the fascinating world of trading!