A common problem when it comes down to making money trading is that new traders find it hard to understand the concept of trading at all. They are ill prepared and ill informed… this is the start of why new traders fail so often.
It’s understandable really, if you consider the high octane films about trading and the way the press draw the picture of professional traders ,it’s no wonder that new traders are delusional.
Why New Traders Fail
New traders think that the royal road to riches as a trader is multi screen set ups, intense trading sessions, Ferrari’s and hookers… OK forget the Ferrari’s. But seriously, many new traders want to be the Wolf of Wall Street.
Trading just isn’t like that at all in reality.
If you are new to trading then I can safely say this, nothing changes the day you start trading.
There’s no transition to a new you. You will not become Wolfy overnight.
You see, once you do become a success at trading and you make consistent money, you’ll hit a limit. The limit is how much of the ebb and flow of money won and lost you can handle.
How Much Can You Handle?
You wont make millions a year trading £2 a point… but you might do trading £100 a point. The reality check will come way before that £100 a point stake though. At some stage and often way before even £20 a point you’ll reach your trading threshold.
You might be able to stomach losing £3000 in a day when the Dow turns against you, but can you handle losing £30000? Can you even imagine it?
Most traders never get off the ground because they lose money from the start and don’t like it. I mean, who does? But they just can’t deal with it.
They lose money because the system the were using didn’t work. It had nothing to do with them staking to much, not following the rules or not closing a losing trade.
More often than not, new traders lose their confidence. They didn’t cut their losses soon enough and then hoped that their losing trade was going to turn round… It didn’t, so they take a bigger loss to stop the unbearable pain… pain that is being caused by watching their money getting mercilessly wiped out of their accounts and straight into someone else’s.
After the pain stops, and their wounds all but healed… they are left frightened to lose again. Now their trading bank is running on scarred money. It’s all but over for many.
These are just some of the common reasons new traders fail so often.
What Winning Traders Have
Many traders that make it to the absolute top have a hidden weapon… this is that they have built up their wealth from a standstill and compounded everything they made, they have discipline, unwavering courage and the knowing that they will come out on top.
These weapons combine and make one awesome weapon… the awesome weapon is a winner… or in our story, a trader with a winning attitude and system.
The fact that only 6% of traders make any money now seems reasonable, it’s a tough mental challenge to boot is trading.
But the 6% doesn’t tell the full story. Some of those 6% might make £10 a year whilst a few others make millions. Apparently only 1% make big money.
It’s a dog eat dog game is trading.
But You Can Do It
I’m going to try and address these issues that losing traders have in my new trading system.
As much as I’ll be teaching you a system that makes money, I’ll teach you the truths about you and your mentality as a trader. And I’ll point out the things not to do and what you should do along the way. This will hopefully help you master trading, fixed odds and spread betting.
One of the key areas to becoming a success at trading is starting small, with small banks. You then build the bank by doing the same thing that works, over and over again.
It’s not rocket science but it sure makes trading easier. Do what works, again and again
Here’s a video about trading binary options. You can start small with binary options, a £100 or so is all you need.
You can then reinvest profits into longer term trades over at IG Index. Plus you get a wider range of markets to trade at IG so you can spread your risk.