Do I have to be lucky to succeed as a stock trader, or is it all about skill?
If you pose that same question to seasoned traders, and they’re honest, they’ll tell you that success depends on an annoying, sometimes fickle combination of luck and skill.
The problem is, this kind of answer inevitably opens the door for another question to wiggle its way into our mind.
How much of trading success depends on skill, and how much is just dumb luck?
The truth is. No matter how hard we try, we may never be able to conjure up a satisfactory answer to that unsettling question. There are simply too many variables to take into account.
But in an attempt to put our minds to rest, let’s take a quick look at the definition of the words luck and skill.
Webster’s dictionary defines “Luck” as follows:
Luck: A force that brings good fortune or adversity.
And the definition of “Skill” is the ability to use one’s knowledge effectively and readily in execution or performance.
Now, I don’t know about you, but when money is involved, I prefer to bet on skill, rather than luck.
Although luck may always be a factor, we shouldn’t delude ourselves into believing we can depend on luck alone.
On the other hand, we can enjoy a high degree of control when it comes to honing our skills as a trader and investor.
In other words, luck, by itself, is simply not a viable long-term strategy when it comes to winning at stock trading and investing.
It didn’t take long for Joe Shedler to come to the same conclusion.
Joe Shedler is an IT professional living in Utopia, Canada. He started investing in stocks about 2 years ago. Joe’s goal is to generate more income from trading than what he earns from his day job, so he can spend more quality time with his family.
Utopia, Ontario – Canada
The Traders Council
Joe Shedler is an IT professional living in Utopia, Ontario. A small city located about 60 miles north of Toronto. He started investing in stocks a couple of years ago.
“I got into marijuana stocks early and made some money, which was nice. I knew it was luck and luck is not sustainable. That’s when I knew I needed to learn how to trade the right way,” he says.
Once Joe realized that he needed to find a mentor, he got on Google and started looking at different trading services. He signed up for a few, but none of them really clicked.
Because he wanted to focus on learning how to trade options, he kept coming across information on Davis Martin and The Traders Council.
“I got into marijuana stocks early and made some money, which was nice. I knew it was luck and luck is not sustainable. That’s when I knew I needed to learn to trade the right way.”
Unlike many wannabe traders, Joe didn’t act impulsively. He did a good amount of research before committing to a paid trading service. “I was very interested in options trading, and learning how to get into that.”
“I attended a couple of Davis’ webinars and tried to learn everything I could about him. Turns out, all I could find is that he’s a great options trader,” he says.
After reading dozens of positive reviews and testimonials for The Traders Council, Joe decided to make an investment in his future and acquire the key knowledge and skills he needed to eventually earn a good living trading stocks and options.
“I was very interested in options trading, and learning how to get into that. I attended a couple of Davis’ webinars and tried to learn everything I could about him. Turns out, all I could find is that he’s a great options trader.”
Even though he’s just getting started with Traders Council, Joe is pleased with the results he’s already seeing.
“I just recently got my Questrade account setup and was ready to switch from paper to the real deal. Just last Thursday, I placed a small trade on SPY, set a limit for 5% (to dip my toes before jumping in), and it sold in a few minutes.”
“The very next day I went with a $5,000 order, and once again was able to take a 5% profit,” explains Joe.
“Today, Monday is my first day on vacation and I was able to watch my trade along with the market. Just took home 20% and made US$1,000 (I’m Canadian remember) on my SPY puts. Yay for vacation! Thanks to Davis :).”
Today, Monday is my first day on vacation and I was able to watch my trade and the market. Just took home 20% and made $1,000 USD (I’m Canadian remember) on my SPY puts. Yay for vacation! Thanks to Davis :)”
While watching Davis Martin trade, Joe has learned several important lessons:
First of all, he has learned to take full advantage of the educational materials provided. He’s also learning to be patient, to not take unnecessary risks, and to take his wins when he can.
“I’m always reminding myself that a bird in the hand is worth two in the bush. This way, I don’t wait and try to make a home run on every trade,” says Joe.
“Before Trader’s Council, my wife and I weren’t making ends meet with just my day job. She lost a $40,000 contract in her business, and unfortunately, I wasn’t able to make up for that big a loss with the income from my day job.”
“Although it’s still early in the game, I’m happy I got started with Traders Council. It looks like it’s going to help us out. So far, I’m 100% green (only 3 days) and I’ve already made US$1,500 in profits. “
“That’s more than my job pays in 2 weeks!,” he says enthusiastically.
In his timeless quote, “Luck is what happens when preparation meets opportunity”, Stoic philosopher Seneca, who lived from 4 BC to AD 65, reminds us that to some degree, we all have the power to make our own luck.
For stock traders, luck isn’t just about being at the right place, at the right time. No. To be a successful trader, you need to be the right person, at the right place, at the right time.
Successful traders already know this, and that’s why they consistently “make their own luck” by doing five things:
1. They invest heavily in learning proven trading strategies while honing their skills and instincts.
2. They get good at seeing and creating profitable opportunities.
3. They make better trading decisions by focusing on both fundamental analysis and technical analysis.
4. They develop a resilient attitude that helps them stay in the game long enough to turn their early mistakes into long-term success.
5. Lastly, they’ve learned to keep their emotions in check, while trusting their analysis and intuition.
So take a minute to ask yourself these questions:
Am I depending too much on luck when it comes to my trading?
Am I doing what it takes to turn preparation and opportunity into good luck (and profits)?
Be honest with yourself, then commit to doing whatever it takes to become the right person. The right person is someone who has the knowledge, skill, and instincts to take advantage of the right opportunities, at the right time.
Start doing this today, and you’ll be surprised at how much control you can have over luck when it comes to stock trading and success in general.
Do you have a Raging Bull success story to share?