Do you still consider trading as a hobby?
There are many traps in the Internet directly or indirectly connected with trading and people are rightly anxious not to fall in one of them. The so-called Forex market is especially aggressively promoted and a big number of readymade trading systems are offered.
Even rather intellectual people often get caught into such marketing nets. Nevertheless, you shouldn’t worry about it if you really want to study trading. In this article:
- Why do you trade?
- What the reasons of failures of the majority of traders are?
- It is a mistake to consider trading as a hobby.
- Every word you use in respect of trading matters.
- Forget about success without personal commitment to trading.
Why do you trade?
Beginners usually try to find a trading system or method in order to start trading immediately instead of passing a high-quality training and starting to improve their skills. A trader with such an approach often believes that his failures are connected with inefficiency of the trading system he uses.
The fact that such traders usually trade with the aim to quickly make money or ‘defeat the market’ results in changing trading approaches like socks. The desire to make quick money and conclusions based on short-term results make them constantly look for the Grail which promises the overwhelming wealth.
The problem is that quite often these people do not understand the main reasons of their failures.
What the reasons of failures of the majority of traders are?
Beginner traders often try to explain the loss of money in the market by the incapacity of the trading system instead of looking for the reasons of failures in their own inability to apply it in practice.
In fact, they actively look at readymade trading systems in order to relieve themselves of responsibility. Such an attitude to trading often is unintentional.
After some time, such traders could become angry with their trading teachers to whom they paid money for training. And this would only conceal and aggravate their problems.
It is a mistake to consider trading as a hobby
A big number of traders consider trading as a hobby. They could achieve a high level of knowledge and acquire some experience in trading but quite often they do not achieve a long-term success due to the absence of a professional business approach to trading.
The way by which beginners start their trading career predetermines their chances of success in this business. A motivated and dedicated beginner trader has a higher probability to become successful than the one who didn’t develop these important qualities in himself.
However, the wish to be successful by itself is insufficient. Trading requires consistency to have a possibility to measure own efficiency.
Amatuer traders, who consider trading as a hobby, have certain specific features:
- They do not practice much and devote too much time to the study of new methods, strategies and innovative indicators.
- They do not spend enough time to analyze what they themselves do but spend too much time to analyze what others do.
- When they face difficulties they step aside and do not trade at all for some time instead of analyzing their mistakes.
- They often trade on the basis of subjective opinions rather than on facts.
- They trade inconsistently since they usually do not have a trading plan.
Every word you use in respect of trading matters
The words a trader, who considers trading as a hobby, uses when speaking about trading usually express a complete uncertainty. Traders ‘intend’ or ‘try’ rather than ‘do’ and ‘analyze’. They believe that the market ‘should’ move in a certain direction and if something went wrong they ‘hope’ or ‘wish’ that the market would reverse.
So, what do professionals do in such cases? They readily accept losses and analyze that valuable information which was provided by the market in respect of initial expectations. This allows them to identify what they could have done to avoid losses (if that was possible at all) or, at least, to ‘smooth’ them down. In some cases losses could be a part of the trading system rather than mistakes.
Your internal dialogue could have a great influence on your success in trading. In fact, the same could be said in respect of successes or failures in any other sphere of activity.
The use of words that assume uncertainty results in non-specific actions. Concentrate on words of action. It would help you to develop psychological stability and bring your success in trading closer.
Forget about success without personal commitment to trading
The biggest problem of the majority of beginner traders is insufficient devotion to this complex business. You and only you are responsible for your actions. Independent of how full of enthusiasm you are, you will never become a professional trader and foredoom yourself to failure if you do not take liability and responsibility for your decisions.