This article is to anyone who is just starting off their investing journey. This is for anyone who is curious by the market and is eager to learn how become an successful investor. This is also for the individual who has been trading for quite some time and is looking for some friendly suggestions on how to turn the table and start seeing some success.
Trading the market is not for everyone and certainly takes a great deal of mental strength to be able to see any results. The key element to keep in mind is to have patience.
The Media if it may be via the Television, YouTube or even on Instagram or Facebook when they tell stories of investors they only show the tales of wonder and excitement. They share the stories of the 16 year old boy who turned his $50 investment into $30k, or they talk about the warren buffets of the world who have $80 billion dollar accounts. They share the stories of glamour and fast and sudden success. They talk about the single trade or investment that was made that earned incredible returns, but they more often than not fail to mention the hundreds of dollars that were lost on the way to seeing those profits.
I am here to break the sad news and share with you something that the media often fails to acknowledge when they share stories of incredible financial success that comes from the market. Failure is necessary. It is not optional, it is not avoidable it is vital for any individual to become a successful investor. The key decision that separates successful investor vs those who do not succeed is those who succeed make the decision based on their losses to take their losses as lesson.
Embracing the rejection and failure as part of the process is vital if you ever plan on seeing any success as an investor. I remember when I first learned a few things about the market I was really excited! I couldn’t keep it together I had just finished a webinar showing me what was possible and unable to contain my excitement I call up my best friend to share my excitement.
So I pick up the phone and just start talking at a thousands words a minute throwing ideas like trading the Foreign Exchange market and being able to earn incredible returns on my investment. I start going on about how I am going to buy my first jet now with the profits from my trading and as I am just completely bombarding my friend with my excitement his reply back was something along the lines of “yea sure man, let me know when you buy that jet….”
I didn’t give up then, just as excited I decide to call my mother and tell her all about how I found the answers I was looking for and how I would be the one to bring our family to fortunes through my investing. Her reply was to just save my money save in a savings account and to not waste my money on “Risky” investing and to stick with something more “realistic”. My idea of becoming a successful investor was dismissed by the first two individuals I spoke with but I chose not to let that affect my choice.
I understood that I was embarking on a journey that neither of them have experienced and that just like becoming an investor scared me it scared them as well. I had to find it in myself to understand that learning this skill would be incredible difficult and although I will face rejection socially in the beginning my hard work will pay off eventually.
My first 6 months of investing I didn’t see a single penny in profits being I was only paper trading. My first year in investing I blew 2 accounts of $100 each. The second year of my investing I fell asleep at my computer late at night trading the London session and woke up to $800 in losses in just a few hours. I thought it was a nightmare and I tried going back to sleep only to realize it was in fact true. It was that day I had to make a choice, I could have decided to close the account, pull out the few dollars that were left in the account and buy a beer and accept that trading was not for me. I decided to start again as if from scratch.
I understood that I needed to learn patience and trust. I traded with my ego leading the way and made investments based on emotion and felt panicked if I didn’t see results instantly. I learned the hard way that trading involves being able to read the data that is present and not putting your emotional bias in the lead. I learned to have patience and understanding that it takes time to not just close a trade but most importantly enter a trade.
I went back to my mentors and became a student of new strategies. I devoted 1 hour every day to education myself in different trading strategies and techniques. I made a ritual of surrounding myself around other traders and understanding what makes them tick and how they go about making their decisions in the market. I restructured my approach in how I view and analyze trades which gave me new perspective to old charts.
Achieving Success in the Market is not an easy task, stop pretending that it is. Becoming a successful investor requires incredible skill that is built through experience and repetition. Becoming a successful investor require failure. Through the failure you are given valuable lesson that you must take to prevent repeating losses in the future.
3 years later I can finally say now I am getting better and I have much more to improve. The process to becoming an investor is a long one but you don’t have to do it alone. There are many individuals who are just starting off and in the same place as you are. There are others who can speak from experience and provide you valuable insight on tips to help your game.
Yes, trading is a game and only those who never quit ever play long enough to see the points on the scoreboard. Do not quit now, even if you are 5, 10, 20 years in. Find the right teachers, mentors, coaches, or team and plug yourself in to those who are making it. I am in the process of building a community of investors looking to connect with other investors to share trade ideas and strategies, if this is something that would interest you click the link below and leave your info and we will be in touch.