I’ll admit that day trading is the hardest thing I have ever done, but is it really possible to make a profitable and consistent living? So many people ask me if they could quit their jobs and trade full time. It’s not an easy “yes” or “no” question because there are so many parts to the equation. Everyone is different so how can I possibly tell someone they can handle the most contradictory, uncertain, risky environment on a daily basis AND keep their sanity? I know that might sound scary, but it CAN all be accomplished with a level headed mind and extreme discipline.
Do you think you have what it takes?
So many people fall into the “I want to be a millionaire overnight” and start following other successful traders who drive flashy expensive cars and go on exotic vacations to prove they are living a lavish lifestyle from trading. This drives many people to buy books on how to trade, like “Trading for Dummies” or the thousands of other trading books available on Amazon.com. Most people overlook the most important part of trading, the psychology behind it. Top Google searches of day trading show most people are asking “How to Day Trade”, “How much money can I make?”, or “How much money do I need?” Most people are more concerned with the how and not focusing on if they can handle the variably uncertain, not guaranteed, boundary-less working environment on a daily basis?
That should be everyones main focus first, that is what leads most people to failure. The PSYCHOLOGY of trading. The first books everyone should be reading “Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude” and/or ” The Disciplined Trader” both by Mark Douglas. Those books have truly spoken to me and I wish they were the first books that I read, not the numerous, how to get rich trading stocks books.
Books based on the Psychology of trading will give you a reality check, help you find and deal with YOURSELF first, the biggest hurdle to trading in my opinion. Trading with emotion, or punch in the gut type of trading, that has led me to make really poor decisions over the last few years. It’s helped me overcome dealing with insane anxiety, stress, sleepless nights and FOMO(Fear of missing out).
Once you see this aspect of trading it will help you take the next step, faster than most others starting out could ever imagine. This is how you beat the statistic that approximately 90% fail at day trading. The worse part about that statistic is that failing at day trading in most cases meant those people lost all of their money! That’s horrible and nothing to joke about or make fun of.
I like to compare day trading to going to the gym. So many people are afraid or intimidated to go to the gym, they may sign up but don’t follow through. If you do follow through and show up you’re doing more than many others. It takes great discipline, dedication, and commitment. It doesn’t matter what shape you’re in or if you’re obese, everyone has to start from somewhere. In fact you’re there doing more than many others! And the hardest part is only you are responsible for your own SUCCESS. Its all up to you and no one else. If you are the person who signed up for a gym membership and stopped showing up after the first month, YOU WON’T MAKE IT AS A DAY TRADER. Just forget it right now, close this page. I’m saving you from losing all of your money.
If you’re still here reading, congrats! Did you expect that this article would be talking about your mental state as your ability to be a successful day trader? It’s true, I hope you take my advice, read the right books, invest in yourself, take your time and study. I’ve said this many times over the years, TRADING IS THE ULTIMATE FREEDOM, but are you capable of changing from your structured, boring day job that pays you a consistent paycheck no matter how little you work? Or can you handle working an entire week and possibly losing money? Yea thats always a possibility, its happened to me many times. But over time it won’t matter because you will continue to follow the same rules everyday that could eventually give you the freedom and money to a live a life you always dreamed of…waking up and working in your sweat pants!
Do you have the ‘Psychology of Trading’ part down? Then check out all the other tools I use on a daily basis that helped me make over $225k in 2016.