If you truly are serious about being a trader then there are seven things that you will have to accept.
- You will have to accept that over the long term at best only 60% of your trades will be winners. It will be much less with some strategies.
- Accept that the key to being a successful trader is having big wins and small losses, not big bets paying off. Big bets can lead quickly to you being out of the game after a string of losses.
- Accept that the best traders are also the best risk managers, even the best traders do not have crystal balls so they ALWAYS manage their capital at risk on EVERY trade.
- If you want to be a better trader then you need to accept that trading smaller and risking less is a key to your success. Risking 1% to 2% of your capital on any single trade is the first step to winning at trading. Use stops and position sizing to limit your losses and get out when your losses grow to these levels.
- You must accept that you will have 10 trading losses in a row a few times each year. The question is what your account will look like when they happen.
- You have to accept that you will be wrong, a lot. The sooner you accept you are wrong and change your mind the better off you will be.
- If you really want to be a trader then you are going to have to accept the fact that trading is not easy money. It is a profession like any other and requires much work and effort and even years to become proficient. Expect to work for free and pay tuition to the markets through losses until you learn to trade consistently and profitably.
Trading is about math, ego control, risk management, psychology, focus, perseverance, passion, and dedication. If you are missing one, you may not make it. Trade wisely my friends.