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Life Without Trading

  #5 (permalink)

North Carolina
Trading Experience: Beginner
Platform: NinjaTrader, Tradestation
Favorite Futures: es
Posts: 644 since Nov 2011


Okay, so you lost $1100 and it caused you enough stress to quit. A small account is not $1100: a small account is $5,000 to $8,000 and those can be lost very quickly too. Even, if you are a very good trader, you are still likely to lose a few accounts. So, one way to think about this is are you prepared to lose $5,000, $10,000, $15,000 and keep trading? And, can you do that? Think about it this way, on the road to making let's imagine 100k from trading, what's the probability you might risk or lose 15% at some point? Pretty high, right? If you cannot see yourself taking that loss and continuing on then you may want to do something else.

The second way to look at this question is a serious assessment of your skills. Is your desire for trading stemming from a legitimate strength and passion for markets or a desire for an imagined life-style? If it is the latter, I have not seen many of those people become successful.

Here's what I would suggest, set yourself some requirements to "earn" the right to trade. Trade on the simulator until you earn the right to trade. Here is something else, nobody cares if you are the best trader in the world or you lose it all. There are no crowds when you win and no boos when you lose. Give yourself a goal to log in and trade for 60 days straight, track your performance, etc. Figure out what went wrong and why you lost. Try to cultivate an edge.

But also I have a problem with the statement, "satisfy my sense of self worth". The outcome from the market is uncertain. Why would you risk your self worth on something highly uncertain? It makes no sense to me. On the other hand, if you love the game then I think it is worthwhile to pursue.

There is another path that is near guaranteed to improve your life time earning/income. The reality is most traders had to be in the top 1% to 10% of earners to even have enough capital to trade. Just figure up how much you need to trade seriously and work to get your income up to that level. Even if trading doesn't work out, you will probably make way more then you do today. It will probably require obtaining more education, skills, etc.

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