There are quite a number of trading “cons” floating around the internet and people are rightly concerned about getting sucked into one of them. The Forex market seems to have a high number of “can’t miss” trading systems and the most aggressive marketing
While these trading “cons” are so good they can part even the most intelligent person from their money, those cons are not what those looking to learn to trade should be concerned with.
The biggest and most threatening “CON” to any potential traders success is: the Commitment Of Newbies.
Why Do You Trade?
Newbies tend to come in looking for a trading system or trading method to trade rather than to learn and hone their skills. With such an easy parallel drawn between the outcome of single events being winners and losers, new traders frequently get sucked into the “well this doesn’t work” line of thinking when things aren’t going so well.
The fact that they’re usually day trading or swing trading either to make money or to conquer the markets, motivates them to discard whatever system they’re currently looking at and go on the hunt for another. Their drive and short-term results-based conclusions demand them to do so in order to find success – to find the key to unlock untold riches that the markets promise.
The trouble is, often people don’t understand the root causes of failure and because of this, their commitment isn’t always on point.
You’re Probably Blaming The Wrong Thing
What a new trader tends to do when they try a trading system and lose money, is blame the methods and systems they’ve utilized instead of asking questions about their level of applying that trading strategy to the live markets.
In fact, there’s definitely a type of trader who actively seeks trading solutions in order to ignore their own responsibilities – of course this is unlikely to be an intentional thing, but it’s certainly not uncommon.
Over time and having spent lots of money, they can become bitter over having had their money taken from them by “unscrupulous vendors” and this only serves to further mask the real issues they face.
Trading As A Hobby Is A Mistake
The way some people go about learning to trade could be best described as hobbyist in nature. These people may actually achieve a high level of knowledge, understanding and expertise in the trading world.
But all too often, you’ll also find a lack of professional business-like approach to trading that’s needed to be successful in the long run.
How a newbie starts out in their trading is indicative of whether they have a chance of success in this business. A new trader who is organized, motivated and committed is clearly going to have a much better chance of making it than someone who is not.
Someone who has a desire to be a success, but fails to get to grips with measurable performance is always likely to struggle.
The hobbyist newbie traders have other traits that make them stand out too.
- They want to learn and tend to use the time they have for trading to investigate new methods, strategies, indicators and innovative software platforms.
- They spend less time on what they themselves are doing and more on what everyone else is doing.
- They give over some of the time they have available to trading, rather than making time for trading.
- When they face set-backs, they take some time away from the markets instead of redoubling their efforts.
- They frequently trade based on subjective opinions rather than facts.
- They fail to define and work to a structure – i.e. they haven’t got a trade plan.
The Words You Use Matter
The language a newbie trader uses in their self-talk is usually non-committal too. When they want to do something, they “try” or “have a go” rather than “do” or “assess”. They figure that the market “should” do something but when it looks like it might not, they “hope” or “wish” that the market will turn around and not hand them a loss.
What about the professional trader
They are more likely to readily accept the loss and use the valuable information the market is giving them relative to their original expectations. This allows the professional trader to determine what, if anything, they could have done to either avoid the loss or at least mitigate it. Sometimes, a loss is just a loss in the random distribution of wins and losses.
The type of chatter that goes on inside a trader’s head can have a huge influence on whether they are successful or not. In fact, the same can be said about success and failure in any walk of life.
Using non-committal language breeds non-committal actions. Focus more on the action words that breed a stronger mindset to really have a go at reaching your trading goals.
No Commitment. No Success.
The biggest trading CON out there is the commitment of newbies. It is not the slick marketer, it is you and your level of trading commitment. However enthusiastic an individual is, if they don’t have the commitment needed to act in a professional way, they are likely doomed to failure.
But it’s about being committed to the right things.
So ask yourself whether you avoid spending time on the most important aspect of all – your personal trading. If you do, there’s a danger that you’ll become a hobbyist trader.
The traders that form our Inner Circle have already shown they have the level of commitment that is needed to find any long lasting success.
From showing up every single day in our trading room to using the support system provided to them, these traders have a better chance of finding a level of trading success that the “trading as a hobby” crowd can only dream about.
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