A common question that I get asked by new traders is the simple phrase “What does it take to be a good trader?” Assuming to hope for an answer that involves little effort on their side. In my years of trading, there has been one key element which I find to be possessed by all traders to whom I see as successful in the industry. That one all encompassing factor in successful traders is the sheer passion for trading. Your passion for trading allows the ability for you to continue to grow and learn as a trader. When you have a passion for something, failure will not stop you. Failure simply means that you now know what does not work and you adapt to something new. When dealing with the competitive nature of trading, passion is a requirement.
Trading commodity futures is often taken upon as a hobby; people with full time careers who are interested in trading and are enticed by the ability to make a lot of money, rather quickly. The truth of the matter is you can find success in trading without it being a full time job however it does not mean you can find success in trading easily and quickly without putting in the effort first.
Understand first that the commodity futures market is extremely competitive, people and institutions dedicate years and millions of dollars in resources to make money in this industry. This is a zero sum game meaning that for one to win, one much lose – you are directly competing with these large financial institutions and professional traders. These people are not in this industry by being losers.
By not being a large institution managing millions, you have a distinct advantage over your behemoth competition and that is ease of liquidity and ability to be in and out of the market quickly. You are the nimble dinghy to their schooner and this alone gives you and advantage.
Before I digress further from the main point of this article, let me cover some of my general rules for passionate trading.
- Nothing that makes a lot of money is an easy endeavor. If that is what you are looking for, try the lottery.
- The commodity trading market is highly competitive. You need to dedicate the effort into succeeding and growing your skills through time and error.
- Failure is an opportunity for growth. Expect failure, especially when starting out. Take the time to understand why you failed and how you can avoid it in the future.
- Time is the greatest developer of skill. Don’t expect to be an overnight success and if you are, remain skeptical of factors of luck while continuing to reduce risk and grow your skill.
- If you don’t get excited about trading every day, the odds will be stacked against you. Enjoying something will open your mind and drive your willingness to grow and learn.
- There are no short paths to trading success. There are many tools and resources to help, but nothing will allow you to follow a two step process towards risk free fortunes.
I strongly feel that traders who do not share the same passion for trading as the people leading the pack, you will inhibit yourself from truly making an impact in the market and ability to withstand the competition. The beauty of trading is that it allows the flexibility of work environment and without a static “boss” or schedule to keep you focused, you need the passion to be your driving force.
No other industry offers what trading does. The sheer amount of freedom and opportunity triumphs over any other industry. Isn’t it worth the effort and time dedicated to make trading your staple source of income?