Trading as a hobby or why traders lose

I am often asked what is the secret of my success, why 95% of traders lose money on the stock exchange, but I earn money consistently.

Unfortunately, the answer does not satisfy the majority of those asking, who expect to learn about some secret strategy or profitable robot.

The whole point is that you don’t need to expect much from the exchange and set the amount of earnings as the main goal.

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

That is, I have enough money to live on even without trading, I don’t want to earn more than everyone else, I’m just interested in making forecasts and seeing how well they come true.

 

Why do so many people trade at a loss?

The answer is quite simple, most of those who turned to me for advice were in a deplorable financial state and had a great desire to make money, and it didn’t matter in what way - stock trading, bookmaker bets or speculation.

The main problem of these people is the haste with which they try to get money while losing even what they had. They have no time for study or market analysis; they need money today, preferably before lunch.

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

• During the first few days, trades are opened almost at random based on unprofessional conclusions about the direction of the trend.

Moreover, beginners at first do not even want to waste time getting to know simple strategies. After the first major failures, awareness comes.

That you still have to spend a little time finding a profitable strategy. • Now a strategy has been found, it is quite simple and, according to reviews, has allowed many people to make money, but as in the first case, a beginner feels sorry for the time to test it - after all, money is needed even more than before.

As a result, many recommendations are ignored; the strategy is often used at the wrong time as indicated in its description.

As a result, another loss, then it’s time for the robots. • Forex trading advisors or robots are advertised on almost every stock trading website.

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

But, as usual, there are many conditions under which the robot brings a stable profit, and the market does not always meet these conditions. In addition, many of the robots do not have good deposit protection, which results in a complete drain of the funds available in the account.

How to avoid mistakes and start earning consistently?

First of all, you should not engage in trading with the expectation of quick profits; if you perceive stock trading as a hobby, you will be able to avoid great disappointments.

I myself came to the exchange already having a stable monthly income and knowing very well the theory of making money on the exchange, it was just interesting to put my existing knowledge into practice.

Even in my youth, I loved reading books about stock trading , and the stories of talented financiers aroused admiration.

One of the first books was T. Dreiser's “Trilogy of Desire” - Financier, Titan, Stoic. Perhaps this was precisely the secret of success; there was no attempt to earn a lot right away, but only interest in the process itself.

Try not to put earnings at the forefront, because stock trading is not only about money, but also interesting.

Knowing that your predictions have been confirmed brings great satisfaction. An excellent example of confirmation of these words can be the stories of great traders - http://time-forex.com/treyder

Robert Johnson.