Is Home-based Trading For You

I received the new issue of SFO Magazine (Stock, Futures, and Options) yesterday and I've found this issue well worth reading. 

Particularly, one article asks the question, "Is Home-based Trading For You?" Even though this is exactly what I'm striving for, sometimes I forget that there is a lot to take into consideration before even thinking about taking the plunge.   Have you thought about it?

When I first started trading last year, I remember giving myself 1 year to start trading full-time.  Some of you who had been doing this longer pointed out that I wasn't being realistic.  I wanted to remain optimistic so I stuck to it but eventually did realize that it was absurd to ever think it could take me only 1 year.  In this article, the author states that you should count on at least 4 years of practice or part-time trading.  You are jumping into a world dominated by professional killers.  You have to be ready.  

Are you Realistic?

I am.  I know that day trading isn't a get-rich-quick scheme.   No seminar or special offer on the internet is going to help you. 

I also realize that the learning curve is steep and like I've said before, the longer you can survive during the first few years, the better chances you have of making it.  Allocate a certain amount of money that you know you'll lose.  Think of it as the cost of educating yourself with market experience.  Don't blow it all in a month because if you do that, you'll be out of the game and have no way of getting that all important experience. 

You cannot underestimate the amount of time and practice that learning how to trade takes.  Trading Forex has consumed a lot of my time but I love the challenge and enjoy learning how to trade.  If you don't have the dedication, rethink if you want to ever day trade.

If you do take the plunge, are you ready for the limited social interaction at home you will receive.  I understand this and I'm ready.  I also have an option of finding a trading partner and trading out of a small office.

Can You Handle Being Wrong?

Robert Deel, a teacher who has tutored some 30,000 individuals and professional traders has found that some of the worst trading results have come from doctors, lawyers, engineers, and dentists.  Intelligence isn't the only necessary characteristic that you need for success.  You need to handle the fact that you will be wrong quite often and most likely more wrong than you will be right.

Deel found that younger traders often show a better trading record than seasoned MBA's.  Younger traders don't want to quantify every move by backtesting and second guessing.  They jump in and if they are wrong, they get out.  

Do You Blame Others For Your Failures?

Don't.  Take responsibility for your losses so that you can fix them and learn from them.

If you want to read this article, you can subscribe for free to the online edition or print edition at:

http://www.sfomag.com/subscribefree/subscribe.asp  

Popularity: 3%