How easy will it be to replace it?
What else would you do?
Will you try to replace it with another financial related job/profession or you would look elsewhere?
These are questions that traders are seldom asking themselves. They usually don’t come naturally and only occur once you have a certain amount of trading years under the belt.
Should I stop trading even if I am consistently profitable?
I have been asking myself this question and I find it quite hard to find an answer. Trading has been with me since 2003 and I feel that although trends are changing and money is always changing hands, the business is always the same.
Why you should stop trading if it is profitable for you?
If you were to choose again, would you have chosen trading as your job/hobby?
I have found out that the right answer for me is to try to help other traders with my knowledge. I have found a balance between trading and sharing my experience with others keen to learn.
I would choose trading again and again over anything else.
Being probably the most challenging discipline, trading is also the easiest to quit. Traders come and go; rise and fall every year, month, week…
What sticks to the Wall after the trading decisions have been made and “thrown” against are only the most disciplined amongst the traders.
Losing is one of the major reasons that lead traders to quit so soon… And I don’t blame them.
I like to believe that it is my persistence and consistent results in trading (especially in the later years), but must say that luck has had its role, too.
Not the type of luck that you are thinking of, but the luck of my personal circumstances, time and character.
I have been lucky enough to be given a chance to trade in some of the leading prop trading houses in London.
I have been lucky enough to have met some great traders in my life who helped me a lot in growing as a professional player in the markets.
Not so lucky are others…
Would I have stopped trading if I was not that “lucky”?
I strongly believe that traders are built and not born. If I did not have the chance to be in the right place surrounded by the right people, I might have chosen the “quitters path”.
In the end, we are all just human.
On the other side, I would not say that luck has been the driving force for my consistency in trading and why I have not stopped trading.
I might have been lucky according to some or not so lucky according to others, but one thing is certain- I have never taken any shortcuts in trading.
Indeed, shortcuts in trading equal mistakes and usually lead people to stop trading.
Therefore, it seems to me like I might not have quit trading even if I was not “that lucky”.
Why some successful traders stop trading after a while?
I still have not met a trader who has been consistently beating the street and quit once of a sudden.
With age, some of the professional traders I know tend to reduce trading but don’t completely stop it.
Profitable traders usually want to help other traders learn. I must say that it is not that easy and although a lot of people want to make you believe it is, successful trading takes time and dedication.
Therefore, successful traders don’t stop trading- they either reduce trading with the years or start helping others… or they do both.
Should I stop trading if I am not successful?
Or maybe you should not.
It really depends on your personal circumstances. Ideally, you would have another job and try to develop your trading skills in parallel. If you see that you start to be consistent for a few months, you should probably continue trading.
If your trading results are fluctuating wildly, you might need to work on your money management skills and try to improve the general understanding of risk.
If you are consistently losing money, you should try to stay away from trading. It is probably not for you.
One statistic says that over 95% of retail traders are failing. If that is right and if 100 people are reading this article right now, chances are that only 5 of you guys will be profitable in the long run…
If you stick to the rules of course that led you to where you are when you are successful.
So, would you stop trading?
If you had to stop trading tomorrow how much would you miss it?
If you are part of the 95% or you just don’t feel that trading is right for you, you should probably consider your other options.
What else are you good at?
Why would you miss trading if you stop trading?
If you stop trading, what other challenging projects can you find? Maybe you can improve your skills at coding or learn a new language. Maybe you can take a gap year and travel the world…
The possibilities are immense and you have the final word!
In case you want to join the 5%, you need to be ready for a lot of sacrifices, sleepless nights, persistence and no guarantee that it will all work out.
Are you ready for it?
For more articles by Colibri Trader check him out here on ColibriTrader.com and follow him on twitter @Priceinaction.