How To Be A Grown Up Trader

How To Be  A Grown Up Trader

How To Be  A Grown Up Trader

                                                                                                                                                                                                                                                                                                        I do not think traders really start making money until they really mature as traders and understand the big picture. I have been on this journey myself and went through the wild excitement of the the internet bubble, day trading and the experience of making a few hundred dollars in a few minutes the first time and the delusion of the get rich quit trading scheme and the expectations of multiplying an account within a year. The game of trading has large amounts of money flowing through our accounts and can give rise to emotions that make us act immature. We can easily become deluded and go down the wrong road, let’s stay on the right road.

How To Be  A Grown Up Trader:

  1. Quit believing all the BS of people promising you will be rich if you just sign up for their newsletter, seminar, or join their premium service. Look for realistic resources to learn. The more hype the more the probability of it being BS.

  2. Quit thinking you are going to double your account in less than a year, even if you do that just means in almost all situations you are taking on too much risk. If you can achieve a 20%-25% annual return then you are among the best traders in the world, Soros, Buffet, Paul Tudor Jones, and even Bernie Madoff.

  3. If you do not know what your edge is then you do not have one, do not trade until you figure it out.

  4. If you have to ask others what they think you should do on a trade stop trading and develop a trading plan. A great way to be in the 90% of traders that lose money is to just trade your opinion.

  5. If your search is for “Hot Stock Tips”  then stop looking for tips and start learning a trading methodology.  Silly trader tips are for waiters, entry signals are for serious traders.

  6. Stop getting so excited about one winning trade, you may give back the profits on your next trade. You should be trading a positions size where every trade is just one of the next 100 and has little impact on the big picture. If you see a trader celebrating after one winning trade like they just won the super bowl they either don’t have very many winning trades or they are trading way too big and risking too much.

  7. Stop thinking you can trade for a living with a small five figure account. Think multiple six figures if you want to maintain a decent lifestyle.

  8. If you are more concerned with making money than risk management and managing your emotions you will eventually be in trouble.

  9. Stop confusing one good stock pick or a bull market with being a great trader, we don;t know if we are really good and able to execute our method until we are tested in bull, bear, and sideways markets. Also we have to see if we can come back from a drawdown and survive a 1987 Black Monday or a fall of 2008. Then we might be able to pat ourselves on the back.

  10. If we are not willing to put in the serious work of learning how to trade we simply won’t make it. We will only get back in profits what we put in with effort and that could still take awhile.