8 Reasons why you should not become a full-time trader?

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I want to be full-time trader one day” – this is one of the most common goals you hear people say these days.

People have this rosy, happy, and Utopian picture painted of their goal of having a trading room with a beautiful view and multiple screens and show off on social media. I wonder does anyone ever see the other side?

While everyone desires to be a full-time trader, the source of this goal is not passion, most of the times is their job or the manager they hate.

#1: Is it really your passion?

Many people confuse interest with passion. Checking stock market apps every 2 minutes is not passion. Being super active on social media & writing 100s of tweets on market gyaan is not passion.

If this describes “You” right now, then you need to spend more time to understand what passion really means.

For me the definition of passion is very simple – It is that energy that pulls you up every time you hit the rock bottom in your life. Passion is realized when you are at your absolute nadir and have nothing to lose. Standing by your passion when nothing is going your way is the most difficult task.

# 2: Passion is one thing, skill is another

While it is good that you found your passion, but, unfortunately, it is not enough. You have to develop skills to accompany your passion to achieve great results. And skills don’t come in short time.

Skills, real skills, take time to develop. Do not live in illusion that you will know it all ever.

#3: Desire to prove others

I see so many traders, technical analysts who spend day and night on WhatsApp and Twitter posting charts after charts, then embedding those charts to show – I TOLD YOU!

What is the need to prove it to the society that you are good?

If you are good, let your trading account speak for it. Why do you need to get paid subscriptions, money management etc when you know you haven’t really spend enough time in markets?

This is biggest mistake new traders do – the endless desire to be in limelight and always say – I TOLD YOU!

#4: Disconnected with reality

The reality of a full-time trade is very different. It is not how you see on Twitter or YouTube.

Successful full-time traders are either ex-professional traders or ones who have gone through insurmountable losses in the past that has taught the reality of trading world very early on.

Market never stays on high or low. Most of the traders are LONG only. Some are LONG + SHORT, but very few know how to trade CONSOLIDATING market as well. It comes with experience, PERIOD.

If you are new to trading, or have been trading part-time for sometime already, I strongly advice to spend more time and do not rush to become full-time trader.

#5: No idea of capital management

Many traders usually talk about flashy words such as – Price Action, Virgin Price Action, Market Sentiments, and so on. When you speak such words, others see you highly knowledgeable and start following you. Perhaps, this one such way to get people follow you.

But, why is that nobody talks of capital management, risk management, or even risk adjusted consistency in returns?

Nobody talks or teaches how to size your trade positions, why?

#6: Thinking highly of yourself

This happens often. As trader’s technical and observational skills grow, he/she starts to think extremely highly of himself/herself. People start to gloat. Their tone and language change suddenly.

This results in arrogance and know it all syndrome. This also results in over confidence which is biggest enemy of any trader.

#7: Mixing trading & investing

A genuine trader knows when is the time to buy and hold something for sometime. Similarly, a he/she also knows when is time to trade. Bottom fishing, swing trading, scalping – so many names given to confuse people. The successful trader is one who does not let noise come in and focuses on trends.

At the same time, he/she also knows that I cannot be right always and there is a high chances of going wrong. This attitude helps trader to stay grounded and change positions within flash when something goes wrong. This agility is a virtue of a great trader.

#8: Wrong reasons

Let us accept this for once – Rarely anyone loves his/her job in India. People hate to commute to work in traffic, people hate their managers, basically, people hate their professional lives. Of course, there are exceptions everywhere.

Many want to become full-time trader because they don’t want to see their managers or don’t want to commute to work. I know or have known some of the great traders here in India and abroad who travel 2 hours one way to get to office/trade desks and love it. Do you have a better excuse?

Summary

Market is a great illusionist. It makes you believe in things that are not real. Trading educators, who post 100s of videos on YouTube etc., haven’t made any great money themselves trading.

Rarely such educators keep audited records of their traders which should be SINGLE SOURCE of truth to decide whether this educator is eligible to teach or not.

Have you ever thought why is there a need to be so active on Twitter, trying to prove your worth to the world? What is the need to disclose your strategies on YouTube videos if those strategies work really well? What is the need to price a seminar or course so expensive that people feel the pinch while paying you for trading knowledge?

Why the hell are you not making enough money already from trading that you are forced to do so many things?

Answer is very simple – It is very easy to preach, but extremely difficult to practice and practice consistently and then master the trade.

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1 Comment

  1. Dr Rajesh Luhana
    1st June 2020

    Your flair for writing matches your knowledge of the market. Its a pleasure to read your views on any platform – WA, Twitter, etc. You are my role model!!

    Reply

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