Making money as a trader can be one of the most lucrative business you will ever have the good fortune of being involved in; after all I’m living proof. But some people, even with blueprint in hand, just can’t get it to work. In fact it never ceases to amaze me at the number of people that start of trading the markets fantastically only to break the rules for no reason whatsoever and go on to lose money.
How to make money from trading is actually not difficult to learn. Fortunately for my student’s, they can email me for first hand advice if they are unsure about anything. For many though, they have no choice to but learn the hard and expensive way. And what’s worse, that’s after they have bought into some type of unproven, here today, gone tomorrow system.
But why is it that the same winning strategy given to a group of students produces spectacular results for some but not others?
Some of my students have made serious incomes from trading my system. I’m talking 6 and 7 figures yearly. Yet others just will not follow the rules!
Human error in trading
We all have unique personalities, but new traders tend to have certain traits within their personalities that come to the fore. And it’s these traits that dictate the way they trade.
You could give them the simplest trading system on the planet to profit from; but as soon as their personalities and traits take over the trading decisions, the problems soon begin.
I have been teaching students to trade the markets for nearly 20 years. I’ve seen a lot in those years. I’m not going to say I’ve seen it all but I’ve witnessed some crazy stuff that traders have done. From these personal experiences, this is what I have continually noticed from new traders. And this is what you do not want to do if you are serious about making money trading.
Far too many traders become impatient as soon as the going gets good. Logic and rules are replaced with greed and speed. The desire to make more and more money as quick as possible starts to rule the brain; and from there on in things start to go wrong.
Trading is a waiting game, and that’s where the money is truly made. Some people just can’t wait. The surprising thing is that longer term trend trading and day trading both involve waiting to make profits.
But for the trader that can’t stand waiting, day trading becomes far more appealing for some reason? Problem is that they soon become impatient with waiting when day trading. So once again they break every trading rule they have. This time though they can at least lose their money faster so there’s less waiting.
I want more and I want it now.
For those new traders that are capable of handling the waiting, another bright idea always seems to enter the mind. This is the, I want everything now trader, I want it all; I want more bang for my buck if I’m going to have to wait for it.
So to quench this hunger the stakes must be raised. Ultimately the stakes are doubled, trebled, quadrupled. And… It’s bye bye bank. I have seen traders blow their entire bank on a single trade. It’s all gone on a dead cert. That’s gambling not trading.
Trading is a serious business, or at least it is if you want to make any money. But for many traders, trading is more some sort of elaborate game. They get on the forums and chat rooms to talk big [or small] it’s play time for them.
Even though they think they are trying to trade to make a profit, they are actually trading to make a social life in many instances. This is never admitted though. But there is an entertainment value for many traders.
Some of these entertainment traders actually have all the right attributes to go on to become fantastic traders. They are naturally patient, can follow a system, but the wealth plan is often flawed with these traders.
There is no ambition to make more, to compound their banks and no real drive in them. Trading to them is just better than watching TV.
If something’s simple, it’s obviously too simple to work; if there’s effort involved, it’s far too complicated. There’s no winning with this group, instead of progress they find problems. Financial spread betting is often a total waste of time here.
Wrong way round
A golden rule of trading is cut your losses short and let your profits run. But this type of trader always takes a profit to soon. Instead of letting their profits run they fear losing the profit that they have made so they take the profit to early. To add to this losing strategy, they are also unable to take a loss. They just can’t accept a small loss so they keep their losing trade open in the hope that the trade turns round. When it doesn’t they end up taking an even bigger loss. They just have it all round the wrong way.
When you are learning something new, it’s not always plain sailing. You will find some things incredibly difficult to do. Then one day you will look back and find the situation comical because it’s now become so easy.
It is exactly the same with trading. You may find it really difficult to accept losing money on a trade in the beginning. But with practice you gain confidence and you learn to trust what you have read and been told to do.
Trading is not difficult at all to do and make great profit’s from. As long as you can follow some simple rules and avoid becoming emotionally attached to your trades, the winners will far outrun the losers. You will get losing trades, but using the Vince Stanzione course you will learn to cut them short and let the winners run and run.