There Is No Santa Claus For Traders

There Is No Santa Claus For Traders

I have good news and bad news for new traders and new investors. 

First the bad news:

  1. There is no Santa Claus for traders. 
  2. There is no kid with a fancy sports cars that can show you an easy way to trade penny stocks or crypto for millions. 
  3. There is no Holy Grail trading system that wins every time. 
  4. There is no best way to trade only the best way for you to trade or invest. 
  5. About 90% of active traders lose money. 
  6. You can’t trade for a living with a few thousand dollars. 
  7. 20% annual returns is near the best for most traders and investors. 
  8. You have drawdowns in capital as well as returns. 
  9. You can have losing days ,weeks, months, and even losing years. 
  10. You can’t expect to start trading and instantly make money it is usually a big learning curve. 

Now the good news:

  1. There are trading systems that are profitable over the long term.
  2. There are many successful traders you can learn from on social media for free. 
  3. There are many ways to make money in the markets. 
  4. Your search is for the best way for you to make money in the market. 
  5. About 10% of traders make life changing money, eventually.
  6. You can reach financial independence from trading if you have enough capital and/or keep your living expenses low enough. 
  7. Compounding 20% returns doubles your money every 3.6 years. 
  8. You can minimize your drawdowns through proper position sizing and risk management. 
  9. You can have a losing day but a profitable week, You can having a losing week but a profitable month, You can have a losing month but a profitable year. Long term results are what are most important. 
  10. You can overcome the learning curve of trading by doing the right homework and creating a trading system with an edge that fits your personality and beliefs and then trade it with discipline and perseverance over the long term for life changing success. 

There is no Santa Claus that will give you huge success with little effort but there are financial markets that contain huge opportunities for those willing to do the work.