The failings of a trader
In this post I would like to recount a very interesting meeting I had with this friend of mine who was keen on getting started with investing and the world of financial markets.
He said to me “Resh I love taking risks and getting high returns. I’m a high risk taker” Well it wasn’t my first time meeting somebody like this so I knew the group he belonged to.
He belonged to the group who was in it to make quick buck over a short period of time. Rinse and repeat. Having been in the markets for quite some time though I’ve tried many different strategies and learned from many different mentors. I’ve learned that what my friend wanted just doesn’t work out over the long run.
Let me explain.
Well he could start out with 10k. Lets just say he is really good and doubles his money within a short few months. Suddenly he hits a losing streak and with two bad trades he blows his entire account. Beaten down and discouraged he has no money left to trade.
His journey of trading has ended. From then on he has a seriously battered view of the markets. Well he has no money left so he can’t really do anything to recover his losses.
So recently I came across this video on Youtube. Do watch it before reading on. Its at the bottom of the post. Its kinda long. If you don’t have the patience to watch I’ll just summarize it for you.
I love the video for his brutal honesty. Great guy. Here is the problem though. He started when he was a teenager with a 10k account. He completely blew it misjudging some of his trades. He takes a step back and learns from his mistakes and funds his account with another 10 – 15k.
Seriously though how many of us have 10k to burn and another 15k to trade?
On top of that he says “there have been many times where I doubt myself. I even doubt myself now. Whenever I lose money I doubt myself. Just last month I lost 100 000 dollars in a DAY!” How many of us can actually take that?
His dad is a rich businessman. I’m not taking anything away from him but I am just trying to say that its really not meant for everybody and most of us don’t have unlimited capital.
I don’t want you to start off your journey and lose everything. My aim for my students however is for them to remain as investors for as long as possible. I want them to be cashing in big fat dividends even when they are 80 years old.
Let me reiterate my point. I don’t want you to trade for a year and end up quitting. You should aim to be an investor for the rest of your life! For that to happen you must put in effort to craft a sizeable portion of your portfolio which will grow steadily and consistently over the long term.
I cannot stress the importance of this enough. If you’re really interested to learn how to craft such a portfolio do fill out your details HERE. I conduct investing workshops where i teach ordinary people how to start investing for their future and to create additional streams of passive income. Leave your skepticism at the door and do come and learn.
see you soon!
P.S. To be updated on my future workshop dates where i show my students my accounts and how i make a consistent income through the markets every month, do fill in your details HERE.