Importance Of Persistence For Traders
Today, I want to talk to you about persistence. While it is true that roughly 90% of people who start this journey won’t make it to the end (although that number is probably less because of the internet and mentors) it doesn’t mean that success is impossible in the Forex market.
On the contrary, it is very possible. So what is it? How come some people get it and some people don’t?
I want to impose an idea, that those who do get it… settled for nothing less. This, I think, applies to anything in life. You will find that those that get great at anything – whether its sport, music, acting, and even politic – stick it out. Trading is no different.
You might be in a position where you have been interested in Forex trading or introduced by a friend or family member and it’s not going quite how you imagined it would. You started this journey seeing only dollar signs in your head and you could picture everything that trading would do for you.
It’s even worse if you’re South African or another country where your currency is much weaker than the dollar and you start with the dollar conversions on your calculator and this excites you even more! And this is not a bad thing because we all do that but… still, the hard journey lies ahead.
What was it for me?
For me, I had one goal in mind when I started trading. To become a Gazillatrillionaire! And I was on my way! I never really started on a demo account because I had taken a course in which I learned the basics of trading and we were encouraged to start live to get a handle on our emotions ASAP (demo trading doesn’t do that).
In my first few weeks, everything I touched turned to gold. I could do no wrong and I was on fire. I was pulling triple-digit percentage growth in a few weeks. I felt untouchable! And then it happened…Margin call!
Now for those who have been trading for a while and understand a little bit about Risk Management you know that this kind of growth was not sustainable long-term and maybe you’ve experienced it yourself.
For those who don’t that’s okay and I hope you never have to experience a margin call. A margin call occurs because of leverage, to sum up what that is I will use an example. Think of buying a house. When someone buys a house they usually can’t afford to buy it cash so they borrow money and put a down payment.
Your MARGIN is basically a down-payment on your trade and when you bet too big on a losing trade your broker will call/email you to tell you that your loss is getting bigger than the funds in your account so you need to deposit money to keep the trade open. To those who are absolute beginners, follow the links above to get a detailed understanding of how leverage works.
After experiencing my first margin call, I was pretty shaken up because I had to close a trade that took away all the profits I had made. Although I knew something had to change, I still felt confident and I think it helps that the loss was manageable and didn’t affect my standard of living.
That’s why you’ll hear people say “Only risk what you can afford to lose” because as a beginner, you probably will lose. But after that, to cut a long story short, I blew up a few more small accounts (some big ones, unfortunately) and then you learn.
This is where the life path splits for some people. They lose their money and call it quits. That’s where the self-knowledge comes in. You need to ask yourself who you want to be, and if a profitable trader isn’t the answer then there is really no shame in seeking success elsewhere because you will probably find it elsewhere.
But if you aspire to be a profitable trader, know it might take some time and the goal might have to shift for a while. Your goal can’t be monetary before you’ve learned how to make the money.
So for me, the goal became “Never stop”. I didn’t know how long it would take or what things would get in my way (that I would have to learn from) but through the losses and days when you feel overwhelmed by the sheer vastness of the market and you feel like you’re drowning, that was my one goal. Never stop trading.
This is for those who have resolved that trading will be the thing they do. To those who want a side hustle or another form of income, this article may be a bit too hardcore for you. This is for the struggling trader who feels determined to make this work. Once you stop trading, you stop learning. Don’t ever stop.
Don’t bet the farm.
Don’t lose your shirt.
Cut the L.
Keep the W.