Sunday, April 19, 2015

1000% per 36 Hours or 50% per Month?

This article is the answer to the article “How I Made 1000% in 36 Hours”.
Developing of trading skills and attitude can be divided into 3 stages:
1. Gambler with Sports attitude.
2. Professional trader with Job attitude.
3. Master with “market is money making machine” attitude.

Sports attitude
In sports we have longtime preparation and short-time action. This is how it works.
If you want to win in a 30 km run you need to prepare some 1 – 5 years and then extremely run during some hours. After long preparation you run and win once in life or per some years. Yes, you may get a gold medal, glory and respect. But if you loose you will only hurt feelings and you still have profession of runner and good health.
So in the article “How I Made 1000% in 36 Hours” we have some kind of sports attitude to a trading profession. It is the heart of all myths about traders and trading – huge profits in a very short period of time with hardly acceptable risks. Most movies about traders show exactly this model of trading with sports attitude.
I think this kind of attitude is absolutely inevitable for all who starts learning how trade. And yes, I have nothing against sports attitude to trading. Go this way and you will have:- game with playing the luck,
- huge adrenaline injections,
- probably enormous profits once per life,
- 100% death of you account in a long term period.
I believe after 6 months of such trading style you probably get huge money, but you definitely toast your mind and finish with heart attack or apoplexy.
There is no way to treat money as paper because it is not only money but also relationships with wife, friends and colleagues.
Those people who inspired buy sports attitude and prefer highly dangerous style of trading may hardly be called traders. They are gamers. It is not bad to be a gamer if it doesn’t destroy your life: savings, relations, family. But definitely this is the first level of trading style and attitude. The faster you move to a job attitude the better for your trading account.

Job attitude
Our need in money is regular. We can’t live with a glory and gold medal won once per some years. This is good for sports but not for every day job. To get money we need some job on a regular basis with predictable result.
Trading and money management strategies created to help us doing our trading job with regular predictable result. This makes trading so attractive! If you have regular profit, let’s say 10% per month, investors will join you and there will be no need for high risks with the hope to get 1000% in a week.
My teacher had 400 pips on EUR/USD per month. Sometimes he trades GBP/USD too. So it was about 400-800 pips per month with the risk of 2% - 4% per trade. Guess his profit... Yes, it was up to 50% per month on regular basics and eve more!

Market is money making machine
Very few traders achieve Master level. As soon as the trader becomes professional enough to read charts as good as the text in his native language, he is able to manage with absolutely any trading situation. Such Masters can show profitable trading in real time for a group of students using real trading account.
My teacher stopped trading for living some years ago and now he is doing his business mainly by teaching. He gathers 15-20 people in a group and starts his show. Using real account he makes about $15 000 of profit in 3-4 days talking and having fun with his group. After such psychological influence people start to believe they can do the same in some near future and pay him $8 000 each one for a training course. In reality 2-5 of 100 students are able to get regular profits in 2-3 years but still far from making 50% per month. Yes, he has books, videos, helps students, trades some days per week to show the method but this kind of business dramatically reduces his trading risks.
Such trading show (teaching) gives profit of about $500 000 per year with no need for everyday trading, having high risks and stresses.
For such masters trading is simple and reliable money making machine. I wish you to be lucky enough to meet a Master and get some proper knowledge.
Now it is your choice to decide what level of trading and how fast you want to achieve.

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