is it possible to rely on trading for bread and butter now a days mentoring industries is mushrooming
Definitely possible but takes a lot of time to get acquainted with the trading strategies, I would advise you to trade small quantities so that you won’t lose much money at first.
Putting food on the table trying to trade the markets, especially if you are just starting off is almost impossible, unless you get really really lucky with a few trades.
I’d say continue doing whatever else you are doing to put food on the table, trade on the side with money you can afford to lose. If you enjoy trading and have the temperament to handle the volatility of markets and account balance, maybe then slowly increase the account size. The decision to quit the job and do this full time should ideally be done once you have had a year or so of being consistently profitable, even if the account size is small.
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I really think that it is possible to make your living from trading. However, in order to reach this phase, you need to have significant experience and a very good trading strategy that can bring positive results to your account
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Of course it’s possible to have bread and butter (here bread and butter I am assuming your living expenses taken care of). I live by income from markets (not necessarily I call them as trading profits). But larger question is somewhere else, you should have asked what it makes to living from trading income. Here is the answer (it’s a dampener, may not be exciting as you expect to be).
As Albert Einstein said ‘only one who devotes himself to a cause with his whole strength and soul can be a true master’. If you or me want to do something (including successful trading) then it boils down to give yourself completely to what you love. Let it consumed you to an extent where you follow your passion mercilessly, world will bend over to you. Trading is no different!
Mentoring is great, I have a mentor who has been my backbone in terms of learning and psychology. But only mentoring will help when you chartered your path, use mentoring only when you know where it is required.
What it takes to be a successful trader? What are the skillsets required? Is it possible if at all?
It is possible but not easy to achieve.
Talking about skillsets. You can have best strategy in world but it’s useless without proper risk management system and most importantly proper mindset.
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I agree nothing is easy especially when it’s about money. Strategy is not important as compared to risk management, i got it. What mindset are you talking about? Could you be more specific and elaborate a bit more? And how could i develop one?
Emotional discipline things like fear and greed, willingness to take responsibility. Read Mark Douglas’ Trading In The Zone book, you will get valuable insights on psychology of traders.
Suppose i have overcome fear and greed, i know its difficult but lets just assume. Now i have a sound risk management system in place, i dont risk what i cant afford to lose and a little capital set aside for trading. Still i have to predict the market direction. Anyone can predict a few times successfully but i need to do it consistently in order to succeed and earn my livelihood from it. So now i have new problem deciding the trend of market over a short period, of course, as i am not a investor just a wannabe trader.
Imagine you going on losing streak, you will start doubting yourself, your strategy and in process you will get fearful before executing each trade and miss trades that would’ve given you big returns and recovered you from your drawdown.
In same situation one with tough mindset will continue doing what he is doing without getting emotional or fearful or doubting himself or his strategy.
There is no Holy Grail strategy in stock market, each strategy, doesn’t matter how good it is will go through drawdown period and this is where one with tough mindset will survive over one with weak mindset.
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So basically you’re saying one should trade like algo with whatever strategy he or she has that gives slightest of edge without any emotion if i am not mistaken. Assuming nowadays these kind of algorithms are not very difficult to find i am curious to know how many are trading successfully with those. If that’s what holding me back then i will definitely lay my hands on one as well.
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I’m not saying one needs to operate like machine and algo’s are successful all the time. I’m just trying to stress on the fact that mental toughness plays key part in you becoming a successful trader. Just like a sportsman for whom to become successful, hard-work is as important as mental toughness to get through lean patch and failures.
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