How to avoid being one of the 90% of small traders lose
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For some reason traders believe they are the only ones destined in this world to fail as a business group. Traders have this idea that this 90% failure rate applies just to them. Read this:
âStarting a small business is always risky, and the chance of success is slim. According to the U.S. Small Business Administration, over 50% of small businesses fail in the first year and 90% fail within the first five years.â
âIn his book Small Business Management, Michael Ames gives the following reasons for small business failure approaching the 90% rate:
1:Lack of experience
2:Insufficient capital (money)
â¦
7
ersonal use of business funds
â¦
9:Competition
10:Low Profits and High Costsâ
Sound familiar?
Many successful traders and business people have to fail multiple times in order to learn to succeed. This is a fact of life. This is the way the world works for everything. It is from this failure process we learn to become successful. Failure is the best teacher because it forces us to change. Otherwise we would never learn to have the discipline to stay the course in trading or business and be prepared for the obstacles that beat us in prior failures.
I ran a small computer retail business in the 1980âs that eventually failed. I learned a lot from that business failure. Most people at that time incorrectly assumed because I failed once I would never try again to tackle a though business. That was false. I did and it was trading. But just like computer retailing I had to pay my dues to trading. However in the long run I succeeded. Now I now happily run my small trading business (like I should have run my computer retailing business). I learned from my failures and will continue to do so.
I believe it is not unrealistic to find many successful traders here on ET that failed 3 or more times before they finally succeeded.
âStarting a small business is always risky, and the chance of success is slim. According to the U.S. Small Business Administration, over 50% of small businesses fail in the first year and 90% fail within the first five years.â
âIn his book Small Business Management, Michael Ames gives the following reasons for small business failure approaching the 90% rate:
1:Lack of experience
2:Insufficient capital (money)
â¦
7
ersonal use of business funds â¦
9:Competition
10:Low Profits and High Costsâ
Sound familiar?
Many successful traders and business people have to fail multiple times in order to learn to succeed. This is a fact of life. This is the way the world works for everything. It is from this failure process we learn to become successful. Failure is the best teacher because it forces us to change. Otherwise we would never learn to have the discipline to stay the course in trading or business and be prepared for the obstacles that beat us in prior failures.
I ran a small computer retail business in the 1980âs that eventually failed. I learned a lot from that business failure. Most people at that time incorrectly assumed because I failed once I would never try again to tackle a though business. That was false. I did and it was trading. But just like computer retailing I had to pay my dues to trading. However in the long run I succeeded. Now I now happily run my small trading business (like I should have run my computer retailing business). I learned from my failures and will continue to do so.
I believe it is not unrealistic to find many successful traders here on ET that failed 3 or more times before they finally succeeded.
This reinforces my point in this thread>>>http://www.elitetrader.com/vb/showthread.php?threadid=220778.
These individuals that are successful,gamblers are bringing an inherent natural skill to the gambling table.
They possess abilities that their competitors simply do not. That is what is giving them an "edge" over the competition. Edge a word bandied about too often on this site in reference to some magical angle.
Successful traders are born more so than made. I believe individuals have certain skills that lend themselves to various areas or various disciplines.
I truly believe you have to have a "knack" for trading and naturally possess strong analytical skills as well as having an academic foundation in economics, finance etc but the "Knack" or inherent skill is a key to success. hard work helps but can only do so much. I can work as hard as I want at various disciplines and I will never excel at them. Same for everyone else. Some folks(most) simply are not meant to be Traders. Same as they are not meant to be nfl qb's or doctors, or lawyers, or physicists, or what have you.
These individuals that are successful,gamblers are bringing an inherent natural skill to the gambling table.
They possess abilities that their competitors simply do not. That is what is giving them an "edge" over the competition. Edge a word bandied about too often on this site in reference to some magical angle.
Successful traders are born more so than made. I believe individuals have certain skills that lend themselves to various areas or various disciplines.
I truly believe you have to have a "knack" for trading and naturally possess strong analytical skills as well as having an academic foundation in economics, finance etc but the "Knack" or inherent skill is a key to success. hard work helps but can only do so much. I can work as hard as I want at various disciplines and I will never excel at them. Same for everyone else. Some folks(most) simply are not meant to be Traders. Same as they are not meant to be nfl qb's or doctors, or lawyers, or physicists, or what have you.
>Those that want to begin trading as a career should use those steps >above whether u are 40 years old or 50 years old. If you decided not >to get a math and computer science degrees will have a hard time >getting a trading job in the house.
Know any 40 or 50 year olds who actually made this career change or are you just making the point that it's not worth trying to trade unless you follow those steps?
Know any 40 or 50 year olds who actually made this career change or are you just making the point that it's not worth trying to trade unless you follow those steps?
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