Treat trading like a business or you might not succeedHello everyone:
Today I will go over 6 main points on why you should treat trading like a business in order to succeed in this industry.
1. Business will have busy seasons and slow seasons. But overhead expenses will remain the same. So not every month can be profitable, same with trading.
-Some months you can have more wins, some months you will have more losses. It's what you do on average for the whole quarter/year.
2. Record your win/lose trades like any businesses that has bookkeeping to record their revenue and expenses
-This is for you to keep track of your progress, results and find areas to improve. You must record your profits/losses so you can identify your result.
Refusing to do so is like a business that does not record their expenses and wondering why they spend so much $
3. In trading, YOU are the Owner/Director/CEO. If you are not putting in the time and effort like a top executive of a business, then it's unlikely you will succeed.
-Top executives don't just work 8 hours a day, 5 days a week. They put in way more hours than that to keep the business running, operational, and profitable.
4. No business starts out as profitable, they are likely to be in the “red” until years later when they can recover the losses and then some.
-Most businesses start up with debts, borrow money and loans. Don't expect to pay off all those in one year.
In trading you will likely incur losses in the beginning of your trading journey. Understand its a process all must go through in order to come up to the top.
5. Each and every year, businesses review their entire operation. Identify the mistakes they make, find solutions to their problems, create plans, visions and goals.
-Identify your mistakes by journaling your trades. Find areas to improve, whether that is your entry, SL/TP, Risk management, trading psychology, mindset/emotion.
Acknowledge your mistakes, drop your ego, work on overcoming your mistakes.
6. 90% of small businesses fail within 3 years, acknowledge the odds are not in your favour, but continue to put in time and effort. NEVER GIVE UP
-90-95% traders fail in time. You don't often hear about the traders who lose, but you often hear about the social media “guru” and scammers doing so well.
Trading is not a get rich quick scheme, nor is it easy. You have to continue to put in time and effort to succeed.
IT doesn't come instant, and those who can not commit to such, will not be able to continue trading consistently and sustainably.
Most important is, if you fail, get right back up. NEVER GIVE UP in trading, and NEVER GIVE UP in life.
Any questions, comments and feedback welcome to let me know.
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Jojo
