Trading as a hobby or why traders lose

I'm often asked the secret to my success, why 95% of traders lose money on the exchange, while I consistently make money.

Unfortunately, the answer doesn't satisfy most people who ask, who are hoping to learn about some secret strategy or profitable robot.

The point is, you shouldn't expect much from the exchange and make profitability your primary goal.

My secret to success is that trading is a hobby for me.

I have enough money to live on without trading. I don't want to outearn anyone else; I simply enjoy making predictions and seeing how well they pan out.

 

Why do so many people trade at a loss?

The answer is quite simple: most of those who sought my advice were in dire financial straits and had a strong desire to make money, regardless of the method—stock trading, betting, or speculation.

The main problem with these people is the rush they put into trying to make money, losing even what they already have. They have no time for studying or market analysis; they need the money today, preferably before lunch.

An example of the behavior of a typical newcomer who came for money.

• The first few days, trades are opened practically at random, based on non-professional conclusions about the trend direction. Moreover, beginners initially do not even want to waste time getting acquainted with simple strategies.

After the first major failures, the realization comes. That you still have to spend a little time looking for a profitable strategy.

• So, a strategy has been found, it is quite simple and, according to reviews, has allowed many to earn money, but, as in the first case, the beginner is sorry to waste time testing it - after all, the money is needed even more than before.

As a result, many recommendations are ignored, the strategy is often used at the wrong time, which is indicated in its description. As a result, another loss, then the time comes for robots.

• Advisors or robots for Forex trading are advertised on almost every website about stock trading.

According to the developers, such programs allow anyone to earn money, even without knowledge of stock trading. At the same time, they show simply fantastic profitability of over 1000% per annum.

However, as usual, there are numerous conditions under which a robot can generate a stable profit, and the market doesn't always match these conditions. Furthermore, many robots lack adequate deposit protection, which can result in a complete loss of funds in the account.

How to avoid mistakes and start earning consistently?

First of all, don't trade for quick profits. If you treat stock trading as a hobby, you'll avoid major disappointments.

I came to the exchange already with a stable monthly income and a thorough understanding of the theory of making money on the exchange. I was simply interested in putting my knowledge into practice.

Even in my youth, I loved reading books about stock trading , and the stories of talented financiers fascinated me. Some of my first books were T. Dreiser's "Trilogy of Desire"—The Financier, The Titan, and The Stoic.

Perhaps this was the secret to my success: there was no attempt to make a lot of money right away, but rather an interest in the process itself.

Try not to prioritize earnings, because stock trading isn't just about money; it's also about fun. Knowing that your predictions have been confirmed brings immense satisfaction.

The stories of great traders are excellent examples of this: http://time-forex.com/treyder

and Robert Johnson.