THE DAY TRADERS BEAUTIFUL PICTURE
At some point in time you were first exposed to Day Trading. Maybe you read about it or saw a post somewhere that got you curious or a friend or family member was doing it. So wondering what this Day Trading thing is all about, you began to google around.
For me, google wasn’t really a big thing yet and the internet was just getting off the ground. But there was still plenty of information about Day Trading that got me more than just curious. It got me really intrigued and I began to think what my life would be like if I could make some money day trading. The more I researched, the more information seemed that to point to how easy and profitable day trading could be. Suddenly, I felt I found an out from the trap of my current life circumstances. There is so much information and so many people willing to help me, how could this not be the easiest money ever?
Next step, watch some videos. Find something simple that will be immediately successful. Then, find a program to use to place some practice trades so you can spend a few days perfecting what you learned in the videos. That’s right… A FEW DAYS!
First trade… winner. Next trade… winner. OH MY GOD… I’m going to do this for a living forever and ever and be rich. This is SO EASY. The intrigue I felt about trading now turned to excitement. Incredible excitement that I could change my life in what I just knew would be a relatively short period of time.
If you went down a path anything like this, then you’re like most traders. If you avoided that story and started with our program, congratulations you have probably just saved yourself a lot of time, money, and heartaches.
Let’s look at the most obvious reasons that people want to become professional day traders. For most people, several of these will apply.
• You want the freedom of working for yourself
• You want to quit working for the man that keeps all the profits of your labors
• You want to quit working with or for some pinhead in the office, which you find intolerable sometimes or most times.
• You want the option of earning unlimited income which is not possible now
• You don’t want to have to sit in traffic every day
• You want to spend more time with your family
• You want to work from home
• You want to work fewer hours
• You want to take vacations whenever you want to
• Did I mention unlimited income?
• You need to be closer to home to take care of a loved one.
Why not some other business? Well, it is obvious being a day trader has a pretty low barrier to entry. You just need a laptop and connection to the internet and you’re ready to start practicing trading. Add a few bucks to a trading account, and you’re now a day trader. This is an immensely appealing way to start generating an income without having the burdens associated to running a traditional business.
So, we immediately begin to fantasize about what life will be like once we learn what we need to know to place nothing but profitable trades. We paint a beautiful picture for ourselves. We fall in love with this picture. The picture has taken over our thoughts, feelings, and emotions. The picture has become a driving force. The picture becomes the foundation upon which we attempt to build our new day trading life.
Problems start to pop up pretty soon. Those wins that make you feel SO GOOD seem to be few and far between now. You search for answers and find out most day traders fail. You know you wont though because you have a very clear mental image of what day trading is going to be for you. No matter what negative information you hear, you will disagree with it because it doesn’t match your beautiful picture. You eagerly accept information that promises your picture is perfect and beautiful and just within your grasp. You ignore or even get angry when you receive information that tries to change the beautiful picture.
If you can’t relate to anything I’ve talked about here, congratulations. You’ve avoided some of the most typical and critical problems facing nearly every day trader. If you DO recognize yourself, ALSO congratulations. You’ve begun to let go of the pretty picture and instead opened yourself up to taking a look at day trading from a different perspective. To push that pretty picture aside and instead take a look at reality. It’s not nearly as pretty as your picture, to be sure. But that’s how you’re going to become a better trader in the long run. And we have to start with painting a new picture. A realistic picture that has you doing things you didn’t think was necessary to be a day trader.
What is in this new picture?
• Acquiring experience to earn confidence. Without confidence, you’re doomed. It’s the number one priority.
• Accepting Losing Trades
• Daily Study
• Daily Practice which is NOT simulation or paper trading. That’s something else.
• Did I mention accepting losses?
• Emotion Control
• Trade Plans
• Accepting draw downs and have a plan in place to deal with them
• Accepting that time required will likely be MORE than the time previously devoted to your job.
• Accepting that this will NEVER be easy money. You’ve got to stay sharper than the next guy.
So, with all this enlightening news about this new picture you have to paint for yourself, where do you start? Maybe it will help to start where I started so you can better understand the process. Keep an eye out right here for our next post.
The Intentional Trader