Overnight Success

Many newer traders perceive, in spite of all they are told, that somehow they will be the exception; they will reach the pinnacle of trading consistency and profitability in a matter of months. Amazing.

Statistics will show that in all most all vocations, only 3% reach the level of expert – that is, they are performing at the height of efficiency and intellect.

The prevailing perception that somehow trading is a quick way to financial independence or a fall back position for a troubled economy is attracting wide-eyed newbies in droves. Missing in the message perpetuated by marketers of crap and get-rich-quick nonsense is the required investment in time. That is no mistake. Who would purchase a product that requires a commitment to learn or reveals there is actually work involved?

I get so many questions and requests for short-cuts, indicators, system rules, etc. Stop all ready. My reason is not that I do not want to share. The fact is, I could give you everything, but that would not help you at all. If you do not possess the commitment or desire to learn the skill of trading; even a robot will not help. You must understand that learning this skill and becoming successful at it will take time.

The next logical question is “How much time?” If you want to trade for a living, are exceptionally dedicated, and study your ass off, you can plan on about two years. What?! Many of you will take issue with that forecast, but I actually took a year off of what I really think. That’s really not very long if you have a college degree or have spent any time in the adult work force. It took me 7 years to achieve the level of professional trader – after being a professional in real estate development and telecom for over 30 years. The truth is, the time component will be unique to each trader, but the aspiration is the same – the sooner the better.

The challenge will not be learning the basics, manipulating a chart or reading price action. It will be the psychological challenges – the discipline, the trust and the confidence. Because of this, there is pretty much an 80/20 rule in effect. 80% will give up. 20% will stick it out and only a small percent of those will make it to consistency or to pro – the same as just about any other professional endeavor.

You may think I’m cynical, but I want to be clear about the reality of what you are getting yourself into. There is no doubt many of you are committed to learning – but you are not committed to changing; changing your mental approach and your psychology – that will be the downfall of so many. We all have the capacity; we just do not have the desire, the will, or the drive. You can always learn the technical aspects, but be aware that your psychology will exert the greatest toll. Focus on this the most.

This psychology is the missing component that is so often under-emphasized – usually only mentioned in a paragraph or two in most courses or online instruction. It is 90% of the skill trading and requires us to change our perceptions, our beliefs, and our truths.

This change you will first begin to sense, then feel and then understand. At first it will be difficult and uncomfortable – many of you are going through that now. After some time, it will transition toward pleasant, peaceful and humbling. You will be astounded at your confidence and resolve – relaxed intensity – an expert.

How to get there? Here’s a challenge – try to follow your rules and trade plan to the absolute for one week. Then two weeks, etc. Now you get it. This repetition will build consistent behavior, consistent action and a consistent psychological trading state.

As always, the time to start is NOW! . . . so get to work!

Rick

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