And in most cases, that advice makes sense.
Come to trading from a position of financial security, or even abundance, and it’s a lot less likely you’ll make the common mistakes that cause some beginners to lose money.
Not needing an immediate boost to your income, you’ll be less tempted to over-trade, less inclined to stay too long in winning trades, and less likely to suffer losses if they reverse on you.
You’ll also be much less reluctant to exit with a managed loss when your trading plan says you should.
With that being said, there are plenty of examples of traders who have become successful despite starting with limited resources.
Far more important in the long-run than the money you bring to the table is your willingness to learn, your attitude towards risk management, and, perhaps above all, getting the right education and mentorship.
Ryan Marron, a professional chef from Colorado Springs, took to trading to boost his income to support his growing family. He enjoyed some encouraging early successes but soon saw his progress stalling as he posted a run of losses. Realizing that he needed help to get back on course, Ryan resumed intensive work on his trading education with Jeff Bishop and is now making great strides towards the financial freedom that is his ultimate goal.
This has certainly been the experience of Colorado Springs chef, Ryan Marron.
As much as he loves his craft, Ryan knew he needed something more to support his growing family and joined Bullseye Trades a year ago with the idea of boosting his income.
“Hospital bills for my premature son and the government taking my tax check last year,” were the final straws that spurred him to action. “Money that we definitely could have paid off hospital bills with,” as Ryan puts it.
Despite these pressures, success came quickly for Ryan at first. However, in the early months of this year, he hit a string of losses and, in his own words, “started sucking.”
This may have been due to technical errors, or perhaps just an unfortunate run of the kind that even the best traders experience at times.
More likely, though, it was the result of over-confidence, which is a state of mind that can quickly sabotage new traders who find themselves making money right out of the gate.
Psychological studies, as if we didn’t know already, have clearly established that human beings are only too ready to attribute our successes to our own perceived strengths. What we consider our innate cleverness, decisiveness, and intuition.
So, when the market hands out some quick wins, as it does surprisingly often, it’s easy for new traders to think they know all they need to know to strike out on their own.
With a little success under their belt, these newbies may be tempted to chase the market, over-trade, and neglect the principles of risk management.
And in the worst case, when the inevitable losses follow, they may quickly blow up their account in an attempt to recover their position.
“While I love working as a chef, I needed something to help support a growing family.”
Ryan, by contrast, was smart enough to treat his bad run as a necessary wake-up call.
He knew he needed more help and doubled down on his trading education under the guidance of Jeff Bishop and Jason Bond. He credits both of them with teaching him “everything I know about trading.”
What Ryan had realized was one of the fundamental truths of trading. No matter how many years of experience you have, no matter how many millions in the bank, you can never afford to stop learning.
The truth is, learning to trade is not like learning to drive a car. It’s not a case of taking the course, passing the exam, and you’re good to go. On the contrary, the most successful traders are those who continually look for ways to improve their knowledge, skills… and results.
If there’s a flat day in the markets, you won’t see successful traders closing down their screens and heading for the beach.
These guys (and gals) continue to do fundamental research on companies they might want to add to their watch lists. They also back-test new strategies on virtual platforms and devour technical manuals.
They know that the markets are changing all the time, and they have to be constantly learning and adapting if they hope to achieve consistent success.
“It gets harder before it gets easier,” admits Ryan, but he knows that having the right training and mentor is the key to simplifying the process.
And just as top athletes have coaches throughout their careers, successful traders can continue to benefit from the advice of good mentors for as long as they remain active in the markets.
“Jeff Bishop taught Jason Bond. Both have taught me so much. I learn from the teacher’s teacher and have had success.”
The good news is, a commitment to lifelong learning doesn’t have to mean waiting a lifetime to see results.
Ryan’s new approach quickly produced a triple-digit win on the Ultra Bloomberg Crude Oil exchange-traded fund (UCO).
“UCO dropped to $15.80,” he recalls, “then it consolidated. I got in at $1.00, and out at $2.05, so I was happy with my small account win, I know I can do better.”
“Last week it wasn’t alerted, but UCO dropped to $15.80, then it consolidated. I got in at $1.00 and out at $2.05, so I was happy with my small account win. But I know I can do better.”
Wins like this are giving Ryan some welcome breathing space between paychecks, but his ultimate goal is the achieve financial freedom.
And with this new, more realistic approach to the business of trading, he’s well on his way to making his goal a reality.
“If you can find a way to simplify your trading. and trade, not gamble – you will be successful,” is how Ryan sums it up.
Most experts would agree that’s a good mantra for any trader to keep in mind, no matter what their level of experience may be.
Raging Bull does NOT track or verify subscribers’ individual trading results and these individual experiences should NOT be understood as typical as or representative. Please see our Testimonials Disclaimer here: https://ragingbull.com/disclaimer.