Trading as a Way of Life Is it the way to financial freedom? By Mo2

Trading for Life
A lot people think that traders have a really easy life. First, a trader is someone that buys and sells securities on shorter time frames (sometime less than a minute) seeking profits. Sounds great eh? Imagine, you could be at home all day and just watch the computer screen and be free.

It isn’t that Easy
Trading actually, is probably one of the hardest professions around. Not only are you on your own, but also you’re up against financial institutions, hedge funds, national banks, and other large players. It’s like going to the golf course and playing against Tiger Woods, only there are many more like him and you’re only an amateur.

Show Me the Money
Oh yeah, that’s what people want to see. You’re a trader? Then you must be rich right? Possibly, if you’re one of the successful traders that is. The greatest traders that come to mind are George Soros and Bruce Kovner, both multi-billionaires that are self-made and both traders. But the reality is, only a handful can make it. They say 95% of traders fail, and even among the 5% that survive I bet less than 1% can be considered successful.

Experience can help but You’re Never Safe
Some traders can trade all their life and blow out their entire account in one day. It’s happened before and it can happen to someone tomorrow. Sure if they do that, they would be pretty dumb and be trading with too much risk, but it still happens. Trading is unforgiving to those that aren’t on top of their game at all times.

 

Mo2 Thinks
Trading as a way of life is great, if you know what you’re doing and have enough capital to be playing with. I probably will never be able to be a pure trader. Why? Because when I’m in a trade I still look at dollar figures, which kills you when you start trading with bigger amounts. Ideally, I would like to trade with money that I don’t have to worry about losing too much, they say that’s the best way, don’t trade scared or worried money.

The pure traders are truly smart people. By solely having luck you cannot succeed in this profession. You have to be able to continuously come up with new ideas and then adapt to the ever-changing world of markets. If you’re losing thousands, (millions for some) and you can sit there and be calm, then maybe trading is for you. You really start to learn more about yourself when you trade, I know I have.

So, my advice to those that are thinking about moving into trading. If you’re about to quit a job for this, don’t. Try it out part time first, and then decide if it is for you. Because remember only 5% actually survive this cruel game. If this didn’t scare you off, good luck!

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If you would like to comment on this article or anything on this website, please feel free to e-mail Mo2. He can be reached at Mo2@Mo2Thinks.com. Thank you for visiting!