Hello readers. It’s been a while since I published a blog post here. I must admit, It’s been a very hectic year. Whenever I do get some time to publish some content, podcasting comes to mind because there, I just talk, and it doesn’t take much time. Anyway, things have settled a bit this side, and I will try my best to update this platform like I used to do. Today I want to address the issues that cause traders to quit trading within a year or even less. Below are the top 5 reasons why this happens. There’s definitely more, but I will only mention 5.
Impatience
Most traders are so impatient with themselves, and they expect to get straight to the part where they are amazing without giving themselves enough time to practice and gain the necessary experience. If you get a new job, you still need to gain experience in how to do the job, no matter how qualified you are.
You are also likely to make more mistakes as compared to an experienced employee. This is the main reason why employers would prefer to hire someone who not only has the necessary qualifications but the experience as well.
It saves the company a lot of money if they hire an experienced employee. As a trader, you also need to think about that and give yourself time to gain the necessary experience. As you gain it, you will also make a few mistakes and eventually master your craft. Be patient with yourself and stop wanting to be a perfectionist. Remember that all the people you read about would not have made it if they were not patient.
Wanting to Make Money Fast
Think about starting a business. When you start a business, you need to understand that you may not live off of it right away. You need to understand that you may even be required to support it financially before it can support you.
A business needs you to take care of it before it can take care of you. You may even go for a whole year without earning a salary from your business. You do not quit just because you are not yet earning a salary from it; you do whatever it takes to learn as much as you can about your business, and eventually, your business takes care of you.
It is the same with trading; you may not make money right away. Also, just do away with the “making money fast” mentality. Now everything that I mentioned will only make sense to you if you can start treating your trading account as a business.
Expecting a Lot from Small Capital
Now, the internet and social media have sold Forex trading as the quickest way to make money with zero effort and a minimal investment; this is not true. Your earning potential is highly linked to your start-up capital. Money gives us options. When you have more money, you also have more financial instruments to choose from.
Let’s say you start trading with $100; even if you can make 100% (which is mostly unsustainable- story for another day), this will mean you now have $200, and I doubt you can make a living with that amount. If you have small capital to start trading with, you can start with what you have and grow your account. I have published an episode on this topic, and it is the most listened-to episode on my podcast. LISTEN HERE.
Viewing Trading as a Game
Most traders think trading is some kind of game that is not related to anything that is happening in the global markets. Changes in the Interest rates/Monetary policy, GDP, CPI and many other economic factors have a direct impact on the economy, and they affect the currencies and stocks that we all trade. If one is looking for a hobby or a game, they must look elsewhere because trading can be a very expensive hobby if treated as one.
Not Failing in Love with the Process
Most of us would really love to see the process of falling in love with us sometimes. Unfortunately, life does not work like that. Trading is the journey of self-discovery. You will have to develop confidence, patience and consistency.
If you don’t fall in love with the whole process, you will definitely give up even when you are just about to make it. One of the best tools that I have been using is keeping a Trading Journal. It helps with keeping consistency, tracking my progress, identifying areas that need attention and sticking to my trading plan.
I hope you have identified your own struggles that made you quit, or maybe you were about to quit. Start working on them and see if you can get back to trading, and this time around, approach it with a renewed mindset.
Thank you for stopping by. If you love what you read and found value here, kindly share with your peers and stay tuned for more posts. Happy trading.
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