- You have to buy your gear
- You need to know the rules of the game
- You need to have a strategy to play
- You have to train
- Play a lot of matches to gain some experience
- Eat the food that will make you strong and put some muscle on you
- You need to get enough sleep to restore your health
- You need to have people who support and believe in you
- Have the right attitude and drive to go on even when things do not work out as planned
- You need to get to know your opponents and so on.
In short it is hard work and when you become a pro, you are a walking, living and breathing business. Everybody wants a piece of you.
Trading is also a business and should be treated like that unless you are rich and can spend a few 1000$ a month (or more) to invest for sheer fun.
Let me give you the similarities between our hard working professional American football player and our trading business:
- The gear would be the tools that you use for trading, your office / desk at home with your computer and internet connection. Your trading tools like your charting software. A broker so you can buy and sell stocks.
- Know the rules of the game would be to know how the market behaves. Buy on dips. Follow the trend and so on.
- The strategy/method would be to know when you are you going to make a trade. When are you going to exit the trade? When are you going to take a loss when the trade goes against you.
- Play a lot of matches would be to gain some experience in trading, either paper trading or by using your hard earned cash to buy stocks.
- Sleeping and eating speaks for itself. Do not spend to many hours without sleep, do not over trade, take enough time away from you monitor to refill your batteries.
- People that support you are your friends and family. Your social life is important too so do not forget to spend some time with them. Otherwise it will have an effect on your trading and we certainly do not want to be to emotional and unstable when we trade.
- Have the right attitude and drive would be to work hard to become or stay a good trader. To adapt to a changing market, to go on and revise your trading plan when your trades do not work on. To have the discipline to follow your plan.
In short, a trading business needs a trading plan.
I will get into the trading plan in another article, I just wanted to point out that trading is not just your average hobby. Most of us are not professional American football players and that also counts for trading. Only 5% make it as a trader, 95% just loose money.
So never just think it is easy and simple to become a ‘Trader’ by definition.