Let me ask you, what type of trader are you?
Are you a good trader?
Maybe a bad one?
Are you a so-so trader, perhaps?
Are you making money in markets?
Are you winning all or just some of your trades?
In my estimation, there are three types of traders participating in markets:
- Winning traders
- Break-even traders
- Losing traders
The first type of trader is the Winning Trader. Those guys and girls are professionals. They represent 2 to 3% of the total traders. They work only a few hours per day with tons of experience. Very confident people. They are confident to the point where you would take their confidence for cockiness. They treat markets like their personal ATM machine. Those are the people that when asked if they want trading advice from you, they would answer ‘Please don’t give me one!’
There are no traders that win everything, and that’s the truth. But those guys can make their losing day up the next day with a single trade and then some. They are masters of risk control.
If you are one of those people, congratulations! Hats off to you!
The second type is the Break-even Trader. A frustrated person doesn’t see profits or losses. If this type of trader controls risk properly, he/she loses a small amounts of money in lots of trades and then “catches” that good one that brings him/her back to zero or, even worse, loses a big one and then, paralyzed with fear, cut “runners” too fast and after a long time gets back above the waterline.
This person fights with his/her spouse about trading pretty often. He or she is being asked to stop wasting time and get a different hobby.
If you are here, my advice is to get a mentor, because you are awful close to make it. You might need a few tweaks here and there in your trading plan, or risk management to start turning trades into profits. Don’t give up! And don’t listen to your spouse!
The third type is the Losing Trader. Depressed. Constantly wires money into the trading account and losses it fairly quickly. Starts trading his/her money gambling-style, based on a tip or single piece of news. That type of person will tell you that they win every now and then. Well, a broken clock will show the right time twice a day also, right?
Get a mentor before it is too late for you my friend!
There is another group of traders that I did not mention here. Traders that have lost everything. Those guys would not be able to perform before seeking psychological help first. So if you are a trader from group two or three, do everything you can to get to group number one and not four.
Slawomir Juraszek (a.k.a. Slawek J)
Born and raised in Poland. Came to the U.S. in 2002. Started Trading in 2008. First teacher: Noah Davidson. Currently a professional day trader.
Contributor for wallstreet.io: running trading room there “Passport to Wall Street”, making videos and writing articles about NYSE (in Polish).
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