If you want to step into the winners circle of trading, there is one key ingredient for trading success. That ingredient is passion and love for trading.
If you're the type of person that follows the futures and can't wait to wake up in the morning and get immersed in another day of stock market action, then you've got a huge edge over the trader that is hating life and is mired in a trading slump.
In many ways, trading is one of the most challenging careers that you will embark on. And it tests your emotions, tests your resolve. Many times we do not realize that trading is a match of intellect between the seller and the buyer. And the person on the other side of the trade could well be a seasoned veteran. The market is not fair in many ways but if you are willing to use your passion, educate yourself and prepare yourself, you can stake your claim.
The good news is that for every wily veteran, there are tons, thousands, millions of uninformed emotional investors that buy and sell at the worst time. It's true - a fool and his money are very easily parted, especially in the stock market.
If you are doing what you love it is highly likely that you will soon receive the rewards that only passion can bestow on you.
Think of a successful trader, if you know one. More likely than not, this person will be passionate about the market, obsessed even.
Mazlow's laws of self actualization say that we do what we do in order to first gain security, a roof over our head and food. It is only once our basic needs are fulfilled that we move on to more creative self actualizing pursuits.
But what we find as we get older is that as we struggle to achieve our dreams and goals, new challenges are constantly coming in our way. In fact the sad news is that the vast majority of the population works in jobs they dont enjoy, endure relationships that aren't fulfilling and do thing they don't appreciate, all for security. And security ties in very closely with our internal fears.
The markets are the same. Many traders seek certainty in trading just as humans seek certainty in life. But that's the fascinating thing about this career. Things are constantly changing. The stock market will never cease to challenge you, amaze you and confound you, just like life.
Many traders that are starting out expect perfection in their trading as well. But like life, trading is never a sure thing. The expectation of perfection is often wearisome to the newbie trader. Once you realize that you don't need to be perfect in your trading, it can take your success to a higher level. Most successful traders are able to accept that the odds of a trade are never perfect and are able to minimize losses on trades that don't work.
So what we are saying is that the best traders are the ones that have passion for trading and are able to use a deterministic approach and create situations where the odds for trading success are weighted in their favor. Give up certainty, embrace opportunity.