Just Because You Succeed In Other Areas…
Just Because You Succeed In Other Areas, Doesn’t Mean You Will Succeed in Trading
I was talking with a gentleman one time who is wildly successful in his business.
Over the years, he has
caught a couple of good moves in a few markets and now he
thinks he is a trading genius and has found the holy grail.
In my conversations with him, he could not believe that so
many traders were unsuccessful.
He used words like “easy” and “consistent” to describe his success thus far.
When I asked him what he was doing, he explained it generally and I assured him that if he was not careful and did not prepare for the draw downs to come, he was going to find himself in trouble.
I also assured him that what he has experienced the past couple of years was abnormal as the markets simply do not make the kind of moves some of the markets have made in recent years.
Basically, I didn’t want to see him turn around and lose everything gained over the past few years.
He wouldn’t listen though.
He passed me off like a cheap bottle of wine in Buckingham Palace.
What he had fallen into is a common, common trap, and one that
should be avoided at all costs.
Success in one area of life does not automatically mean success in another area in life.
I have said this many times, and it is worth saying again.
If you are a successful doctor, attorney, businessman, engineer, accountant, real-estate investor, or whatever you are successful at…
…does NOT mean you can just waltz into the trading industry and success is going to welcome you with open arms…
That is, not without applying the same principles that lead to
success in other areas.
There are three basic ways to success in trading:
- Do what other successful traders are doing.
- Allow other successful traders to trade for you.
- Take the time to learn what it takes for you to trade successfully.
I did a combination of 1 & 3, and it took years.
I’ve been trading for almost 40 years now, and 32 years full time in this industry (meaning I have not had another full time job of any kind for 32 years).
I say that to say this, I have seen a lot.
I won’t say everything anymore because each year seems to bring another
surprise or two.
And my involvement has not been a typical hobby type involvement…it has been a passion.
I love doing what I do.
I love researching, I love developing, I love learning…all with the end goal of trading the absolute best strategies I can.
And despite all this, there are still some things that I trade that end up not being profitable.
Part of the reason is because I try a lot.
I am always testing theories and ideas to see whether the conclusions are accurate in the real world.
MORAL OF THE STORY
DILIGENCE
Even if you simply do what others do, you better be diligent in doing it right.
Mistakes are not forgiving in this industry.
Even if you allow someone to trade for you, you better be diligent, because there
are a lot of potential scams out there.
Being diligent does not mean there are not risks, or that you can’t lose…again, that is absurd thinking.
However, it can mean the difference between realizing small losses (or expected
losses) and blowing your account to smithereens.
Ask yourself in whatever you are trading right now, Are You Being Diligent?
It is critical to long-term success.
And that is the Truth About Trading.
Change Your Trading, Change Your Life
Ryan Jones
SmartTrading Founder
