Looking back on my personal trading career, there have been some massive ups and downs along the way.
A lot of people get some beginners luck making some decent profits early on and mentally you think, ‘I have a gift for trading. I am absolutely smashing the markets and in the next couple of weeks I am going to tell my boss ‘I quit’.’
Then very soon afterwards, you start losing those profits, then you start losing the capital you have deposited and then shortly after that it’s all gone. The market serves you up some beautiful humble pie with extra cream on top.
It is usually at this stage where you realise that a quick YouTube Blitz on how to start trading is not going to cut it. You need an edge in the market to not fall in the category of the 90% of traders who are not profitable.
You need a clear-cut edge if you are going to make it in trading and that is something I realised early on. I started networking with some experienced traders and eventually found my mentor who laid the foundation for my trading career.
Whether you like it or not, you are going to need a mentor who has already paid the school fees, who has already gone through all of the frustrations and a mentor with a proven strategy and track record. Not some Instagram marketer sipping on cocktails and sharing some bullshit airy fairy dream. If you are looking for a trading mentor, we suggest you check out our Mentorship and Signals program.
So how do you gain an edge in the ever-expanding world of trading and the financial markets? Let’s start with the two most important things you require to be a profitable trader, and no, it’s not more knowledge and it is also not more money.
The two most important things you need are discipline and patience. Unfortunately new traders and even some experienced traders chase more knowledge and more capital without addressing the foundation issues.
Having discipline and patience is something you will always struggle with as a trader and usually when you fail in any one of these two areas, it is usually when the mistakes start to creep in.
Now, you would ask why is patience and discipline the most important? Firstly you require discipline to stick to your risk management system to ensure that you do not over expose yourself in the market.
You are a risk manager first and then you are a trader second. Also without discipline you won’t stick to your trading plan and we all know the saying: ‘If you fail to plan, you plan to fail’. If you fail to execute your plan, what was your plan in the first place?
Then the biggest killer of traders and investors alike is patience. Over the years. I’ve seen how lack of patience cost traders and investor’s millions in capital and millions in opportunity cost. Unfortunately, the world we live in we has developed this mindset of instant gratification where we want results instantly and we want to make money instantly.
The reality in trading and Investing is that the market pays those who are patient, patient enough to wait weeks for a trade setup and then execute it, patient enough to buy a stock and wait months and even years before you get into the money and patient enough to realise you are newbie in the trading and investing game and therefore give yourself enough time to develop and grow into a formidable trader.
Before seeking more knowledge, more information and more trading strategies and indicators, ask yourself truthfully if you have discipline and patience. Developing discipline and patience will not only give you an edge in trading but in life as well.
Don’t be too hard on yourself and give yourself enough time to develop and grow and in closing… If you are going to fail, fail quick and fail forward.