How to be a Professional Trader
Isn’t this the ultimate goal? Chances are if you are reading this, the answer is a resounding YES! There are thousands of traders who dream about one day waking up, grabbing the morning cup of coffee and walking down the hall to their home office to start their trading day. More still question if it is even possible. I myself have been sitting at home, having blown out my third trading account and asking myself, “Can I really do this?”
The answer by the way is “yes”. But it all depends on how you approach your trading. Do you have a blueprint for success? Do you have a plan? Have you laid the groundwork both professionally and personally, technically and emotionally that will allow you to be successful.
With these thoughts in mind I thought I’d take some time over the next several weeks and go through some details about how you should go about the process of becoming a professional trader. We’ll be attacking this subject in detail, taking on a different topic each week. This week we’ll be talking about Decision Making.
Decision Time
As is the case with most anything we decide to do, if you want to be successful (and I mean really successful) the first step is to make a commitment. Decide to succeed. It sounds simple but you’d be surprised how many traders I work with who have not taken this very simple step. So take a minute and answer in your own mind this simple question, “Do I want to be a professional trader”?
What was your answer? Was it, “I’d like too” or “That’s the hope”? Or did you say, “Yes! Without a doubt. I don’t care what it takes or how long or how hard I have to work. I am committed to success.”
In my work with traders what I have noticed is that those who could not answer that question with confidence fell into one of two categories.
1. They had not truly made a commitment to succeed (because they lacked a belief in themselves or in the very idea that someone could become successful) or…
2. They don’t really want to be professional traders.
If after some soul searching and honest reflection you find you don’t truly want to be a professional trader, great! You can stop reading and move onto something far more productive. For everyone else, read on.
If you’re still reading I want you to get out a piece of paper and write down this very simple affirmation:
I will be a professional trader.
That’s it. Simple isn’t it. Keep it in your wallet, on your desk, wherever. Look at it every day. Say it out loud. Why take this seemingly simple step? Three reasons.
1. Because those that actually write down their goals are 10 times more likely to achieve them than those who don’t.
2. Because you’ve probably never done it before.
3. And three because that’s what professionals do.
Keep this little nugget in the back of your brain. 90% of traders who open a live account will close that account with less money than they started with. You may find yourself part of the 90% more than once on your way to ultimate success. Most traders will stop trying before they reach their goal. You will not.
Trading has what is referred to as a “low bar for entry”. You don’t need an education. You don’t need skills, you don’t need a personality. All you need is enough money to open an account. (And brokers are making it easier and easier to do that.) Subsequently there is a very high attrition rate. Most people get started with grandiose dreams but no real idea what it takes to succeed. Over the next several weeks we’ll attempt to fix that.
Contrary to popular belief trading is not easy. It takes a long time to LEARN to do well. But make no mistake. Trading is a SKILL. It can be TAUGHT and it can be LEARNED. So commit right now. Decide to be a success. If you haven’t done it yet, stop reading and WRITE IT DOWN! Tell your wife, husband, close friend, anyone who will keep you accountable to your new goal.
Now that you’ve made your commitment we’re going to talk strictly in terms of professionalism. You may not be a professional trader yet, but you CAN be a Trading Professional. This might seem like semantics but I assure you it is not.
“When you start looking like Marines you’ll start feeling like Marines, and pretty soon…..you’ll start acting like Marines.”
-Clint Eastwood, Heartbreak Ridge-
Just because you don’t trade professionally yet, doesn’t mean you can’t conduct yourself as a trader who does. So from now on I want you to think of yourself as a professional. Stop referring to yourself as a novice or a “newbie”. Those titles are self-limiting and destructive. The sooner you start viewing yourself a professional the sooner you will start acting like one, and pretty soon…..you’ll actually be one.
We’re not going to go into goal setting to any great length although we will talk about expectations when we cover Trade Plan Development, but I would highly suggest you take some time and write down your goals. Not just your trading goals but your personal, emotional and spiritual ones as well. When times get tough and you begin to question yourself, they will help to uplift you and keep you focused.
That’s all for this week. Next week we’re going to talk about Trade Plan Development. It has been my experience that 99% of new and novice traders have not taken the time to write out a Trading plan. This is not an option. It is a necessity. Next week we’ll talk about what needs to be in it and how to get started.
Until next week, Good Luck, and Good Trading,
Jason Stapleton (FOREX GUY)
4xTradersLive.com
How to be a Professional Trader (Part 1)
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