Question:
How are you? What do I do to be a successful trader. I have many losses and I have lost much money. My account is nothing to write home about. Please enlighten me.
Vikkyfamous from Lollywood
Answer:
Vikky, let me first say, I’m doing well, thank you. Now let me say, what the heck are you doing trading when you are losing “much” money? When you are losing, as in anything in life, there comes a point when you stop what you are doing, reassess your approach, and adjust to fit the situation. One possible adjustment is to decide you are not cut out to do that thing, whatever it might be.
Now, permit me to “enlighten” you. You should immediately stop your trading. You should reassess your abilities, and you should decide if you should trade at all.
Reassessing your abilities means looking at your trading approach. Successful traders are objective about their trades, carry their losses emotionally well, and are always looking to sharpen their edge. As well, successful traders are always learning (especially in the early stages of becoming a trader), they stay abreast of the news in the world and in their markets, and they have a strategy. Ask yourself if you behave as I just described above. If you don’t, you should be. If you can’t, then you should not trade.
Okay folks, I will say this again, trading is no magic bullet for making money. Just because “money” is both the product and the tool of trading, it does not mean you will end up with any of it. Seriously, many people who see trading as a way to improve their bank accounts would be better off getting a second job with a steady paycheck. At least that way, your risk is your personal time, not your money.
Vikky, I am not saying you are not or could not become a trader; you just have to make that choice carefully and soon. Get some books on the fundamentals of trading. Talk with some traders. Paper trade until you feel comfortable with trading and you are trading successfully. Define and develop a strategy.
Good luck, although luck has little to do with all of this …
Trade in the day; invest in your life …
