Trading for a living is not actually a great thing to do. It can be better off as a hobby or a part time job. Something as risky as trading is bring great risks to your personal finances. Trading means you have to deal with your emotions as your capital. What do you think is the reason why most trader are not able to make it as a living? The reason would probably be the fact that you they have not found a great trading strategy or system or probably it’s the mixture of secret that you believe might be your ticket to success in trading. Well, reality is that pressure and money are both the culprits for giving you second thoughts on making trading a living. Here are some useful points about big mistakes that most traders have that leads to great pressure.
1. LACK OF EDUCATION AND EXPERIENCE
When you go into something without knowing what it really is, you will typically experience lots of pressure. This is just like going to work not knowing what to do. As with trading, you do not trade if you do not know anything about it. You may have been constantly reminded that trading is a skill that you need to learn through proper education and experience. Without these two you may end up losing even your clothes. There is obviously pressure when are afraid of losing all your belongings to trading. There is certainly pressure when you are afraid that your trades will be unsuccessful.
Traders who trade with money without having the right training and trading experience feel a great amount of pressure and can be overwhelmed with emotions as compared to others who had some three to six months education about the industry. A lot of traders trade using live accounts and as they go with it they are learning. This then leads them sucking their accounts dry. There are numerous traders out there who opt to make money from the market first before they start learning the specifics. This is totally wrong.
Trading is like any other profession that needs education first and then experience. The primary solution towards getting rid of that pressure that keeps you from trading for a living is education. If you want to be on the correct path of getting rid of stress and pressure in trading then education and gaining insights from experience, then you can always enroll or download some trading courses.
2. THE NEED TO SUCCEED
The need to succeed can be linked to the first point. There is pressure when you feel that you have to succeed. This is of course is normal because success needs a little or a lot amount of pressure to be possible. It is common for businesspersons to fail due to the idea of letting their businesses to succeed. Put yourself in the shoes of a coffee shop owner who open his shop at the age of 55. He is close to retirement and the idea of investing most of his money in his shop would be great way to have some extra cash as he retires and gets older. When the business struggles he also struggles to breakeven regularly. There is then pressure build-up. Why? Because he risked everything in a single investment and put himself in a platform where bankruptcy is so quintessential.
This scenario can normally happen to trading. Think about waking up every day us to focus on putting your money on trades because you have made it as your source of income or future security. You are forming a very big mental pressure which can be very hard to recover from. Successful traders out there have already learned from this. By understanding the pressure involved with the industry they have found a way how to get rid or avoid it. This would mean that they were patient enough to only train live when they had some real extra money as capital. This goes to show that good traders are realistic that they start with smaller accounts and then build up over time to better levels through discipline and presence of mind. Whatever path they shall take, professional traders get to where they are because they found a way to considerably minimize or get rid of the pressure towards the need to trading in order to succeed.
Trading with presence of mind is also very ideal. Moreover, you do not need to attach money with such mindset. This has to be possible if you have a strong plan B or a fall back plan such as a good job that can pay your bills and insurance together with saving some cash every month. Trading is without doubt very risky and it has the strong capacity to attract those who cannot afford to trade or those who are always hungry for that dollar sign. This is why you have to ensure that you are in a pressure free mindset to begin trading.
3. SCARED MONEY
The other thing that promotes pressure in trading and makes a trader under-capitalized is placing trades using scared money. This means that you are putting money in the market that you should not have placed. It is evident that a lot of novice trades opt to trade with money from credit cards or loans and become insane at the end. You should never consider to trade from a loaned money! Using Scared Money for trading means that you have a strong emotional link with the money that you are about to risk because you know that when you lose you will have greater consequences. The truth to the matter is that if you cannot afford to risk your money then you have to put your head high and simply accept the reality that trading is not yet for you. You can learn trading from demo accounts. Remember that trading using scared money is like burning money because losing money is a total guarantee.