Do You Deserve to Lose Money?

Do people that eat large volumes of takeaway foods, ignore obvious health care and do no exercise deserve ill health? Compared to a person who is aware and takes action with their healthy lifestyle choices?

Do traders deserve to lose money if they treat their trading development the same as the person who ignores healthy life choices? You will get what you give.

Going the easy way? It's a trap!

There appears to be a consistent effort made by traders to find the easy way to trade, via signal services, social trading, advisory services, robots, etc.

If you do, you open yourselves up to being a victim of a scam. If it all sounds easy and the return profit is very appealing, you are the target and the next easy victim!


Most of us can get caught out

Even seasoned traders can get caught out. Between my mentor who is a fund manager, another wealthy investor and myself, we diversified into a Forex fund that was showing fair returns on a weekly basis. The supplied trades gave an average of 1% - 2% return each week with the occasional small losing week in between. After all it involved me with two very sophisticated investors, how could this go wrong?

I withdrew and deposited funds testing the environment, kept in regular contact with the face of the fund. For almost 1 year everything appeared normal and above board

Then, one dreadful morning an email in my inbox shows a negative balance on the invested account. After various phone calls and emails that day the situation was very clear. This was a ponzy scheme!

It took over 10 years to get a portion of the funds returned via the courts. There were people who had life savings and retirement funds invested, dreams shattered. 

Did we deserve to lose our money (many thousands of personal dollars)? Yes.

We all want more and think we are smart and sometimes we are, however it can also catch you out. Did we all need more money from this situation? Not really but the desire and greed made us hand over some of our money to a total stranger when in fact we were all capable of earning for our self. We call it diversifying, but it is just greed.

Avoid the trap and learn how to trade!

Looking for the cheapest broker or high returning signal service is not where the goose has laid the golden egg. You need to invest into your trading development and yourself. If you do not do so, you will fail, there is no other way. You will deserve to lose money.

Your planning needs to be mapped out just like any other goal you set yourself. If you see yourself as a part-time trader trying to earn a few extra dollars, than that is fine but make sure your learning development is as detailed and focused as a trader that wants to depart from their current occupation and become a full-time trader. The market will not make any allowance for you. Create a detailed focused plan or fail.

Requirements

Firstly, you must have a passion for trading. This is because it will eat up much of your time until you can trade on a consistent level.

A desire to be open and work on your own personal development. 

You will spend much of your trading time alone. Can you be alone? Can you avoid the trap of seeking out other traders online to fill the loneliness void?

You need to work hard at trading. Trading takes many hours and dedication to learn. You will need to learn how to understand the market, price action, and yourself. We cannot complete this at a weekend introduction FX workshop. It will take time and dedication.

If you are in a position, find yourself a mentor. Finding random information on the web is not the answer. You are trading against the best traders in the world, do you really think you can take money off them by taking advice from some hack on the web? 

Most Traders Quit

To quit is easy. Blaming circumstances and situations make us feel better and justified. Whichever way you present this, we call it quitting

We all get to enjoy the fruits of those that have failed the most, but they refuse to quit. It is the very secret ingredient that gives us the privilege to drive a car, be a passenger in a plane, use electricity, have wireless internet, better health facilities, etc. 

Never quit but learn. See every setback as an opportunity to move forward.

Build a team of reliable, trustworthy people that you can use as your development. Be vigilant with whom you let into your life.

Do new traders deserve to lose money?

Until you have found your groove and position in the market, it will be difficult to avoid losing money. You only need to find a section of the market you feel that you can perform your best. If you hope to be a short-term trader, do that. If you only have the stomach for long-term trades, do that. Do what works for you. Feel open enough to develop your own personal trading approach. 

Trade well, Steve.

Course on computer screen