I did reply earlier then deleted it as I thought better of wading into this one, but to inject a slightly positive note into what must by necessity be a largely negative set of responses:- Yes, of course.
But knowing that it is possible is probably less help than would be expected. In fact, (and part of the reason I pulled my earlier post) it may actually convince some that were on the verge of getting out with their shirts, or of not going into in the first place, to charge right on in. So I many be doing some a disservice. C’est la Vie.
The vast majority of those starting out trading do not turn a profit, or even end up flat. This one has been done to death and this thread may end up being another one that goes through all the convictions, assertions, beliefs and myths regarding the percentage of profitable to non-profitable traders. In which case, it’ll be all new to the newbies and fun for the older hands to sit back and watch all over again.
I’ve had my views modified over the years by hard data and I now realise there are approximately as many profitable as non-profitable traders at any given time. I’m specifically discussing independent retail traders only. The pros can talk for themselves, but what I’m going to say next may well strike a chord with them too.
What does change though from moment to moment is the composition of these two distinct sets. Take a snapshot 6 months later (maybe a couple of years for you pros) few of the profitable traders will be the same profitable traders from 6 months back because some of the previously profitable traders will now no longer be. And few of the non-profitable traders from 6 months back will still be in the game. A ‘fresh’ set of non-profitable traders come in to replace the old guard of blown accounts and crushed dreams. LOL.
However, a few do make it and make a living from it. And a very few of those few manage through either fluke or luck or divine providence or whatever (if ever I find out I’ll bottle it and sell it – trust me on this) get to go the extra mile and make enough to make me blush. I don’t have the answers. Any of them. All I can do is provide is the occasional insight as they occur to me in what made the difference for me. I notice others in this position struggle with this just the same so I guess it’s a problem of identifying sensible and valid distinctions rather than intelligence, eloquence or intent.
Having got to a comfortable position with my trading, I got into a comfortable position with the money. Many think it is going to be or should be the other way round. I spent a small fortune learning the hard way, but luckily had sufficient disposable through other income streams to stay in the game. But I blew up big time, a number of times, before finally finding my groove. I guess apart from having the capital, you also need the willingness to get back in and do it again. That’s not just each time you blow up, but even down to (especially down to) those tiny blow ups which are the losing trades. You need to keep on keeping on. You need to find what’s working and what isn’t. Developing and utilising the former while checking what you can salvage from the latter before ditching it. It’s an on-going process. Until finally, you find yourself back where you started and you kick yourself hard for being such a derrière. But how to get there? For the couple of others I know personally in the same position, we all share a passion for the art of the trade and the hours we put in, then and now, are not under duress or pressure or force, but out of the pleasure of doing what we do. I guess that’s a big part. Vocation. Passion. Capital. Intelligence. Perseverance. And ultimately, Basic Simplicity.
