Statistically, less than 10% of beginner traders end up becoming professional traders after a 5-year duration.
Do you know why?… Well, I will give you my personal view.
Some days ago, I had a 10 a.m. appointment with a client, as I got into my car that morning, I realized that my gear lever refused to engage, even when the engine came on. I tried so hard not to get pissed, since I was trying to practice that famous quote:
“Everything happens for a reason“.
I seized the opportunity to take the public transport… Mind you, not Uber, but the regular insane Lagos public transport.
It’s been a long while since I experienced the commotion involved with the early morning Lagos traffic, alongside the endless drama between the Danfo (Old Volkswagen bus) or Keke napep (tricycle) drivers with their passengers.
What I noticed at the park
As I got to the first bus stop away from home, I decided I was going to be more of an observer than a passenger. I honestly wasn’t ready to get ruffled up while hustling for a bus.
Mind you, it was 7.45a.m and I was not in a rush, since my meeting was scheduled for 10 a.m. Here I was at the bus stop, as I stood lazily, I observed that:
Passengers littered every part of the car park, waiting for the next Danfo or Keke. Some were clustered in small discussion groups, while others had their sleeves rolled up, looking eager for a fight, if it’s what it will take to get into the next Danfo.
Now, you may be wondering, what does this have to do with the reasons why you quit forex trading?
Good question, hang on while i explain.
Though I stood there as an observer, the entire scenario I witnessed was more of a mental puzzle which only completely fitted when I finally settled in the Keke I boarded roughly an hour later.
As the tricycle gathered momentum in the now seemingly traffic free streets, each piece of the puzzle began to settle in the right fit, I smiled at the analogy the complete puzzle represented.
1. The passengers who gathered in groups:
Most times when new traders get into trading, they look for trading groups/forums to join. There seem to be this: “NOT WANTING TO STAND ALONE” syndrome, due to the fear of not becoming a victim of fraud.
Some new traders believe that the herd will protect or shield them from the dangers of this new found profession.
Just like the passengers who clustered in groups and engaged in chit chats while waiting for the next available bus, so do some beginner traders also engage in daily group discussions and arguments.
Over time, these new traders gradually lose that sense of purpose or urgency as to what brought them into forex trading.
They become more of cheerleaders to those traders who seemingly are the gurus in the group, instead of taking charge of their trading career and reach out to a mentor who would school them.
Sometimes these new traders become what I call “TRAVELERS”. They migrate from one trading group to another, or from one forum to the next, seeking for the holy grail or simply just admiring the trading skills or trading results of other traders. Sometimes actively engaging in arguments on who the best forex traders are.
As I stood there at the park, I realized that most of the passengers that gathered in groups got carried away by their seemingly interesting conversations, and where they were heading to became secondary to them.
2. The agitated passengers:
While taking my gaze off the groupie passengers, I noticed there were other passengers who would chase every Danfo and Keke , yelling the name of their next bus stop at the top of their lungs.
Most of the buses just breezed past them, either because they were filled up, or a passenger booked for the entire Danfo or Keke. I watched as each chase became more and more frustrating for these passengers, and at some point, the chase slowed down to a fast paced walk and gesticulations of where they were heading to.
As a new trader, are you falling into the trap of chasing every indicator or system?
Are you constantly chasing the next system when the one you are using had a string of losses?.
Don’t be shy my friend, I was once there myself. No system was good enough for me. As a matter of fact, I spent years going round this same loop.
System after system failing, and off I flung them through the window. At the end, I became tired, frustrated and started doubting the profession as a whole.
I thought to myself:
“Do people even make money through trading“?
If you are such a trader, you are not alone mate, there are so many other new and intermediate traders asking the same burning question.
The truth is:
You are looking at the wrong place for answers. In case you don’t know, trading forex, and becoming profitable at it, has a lot to do with a trader’s psychology. In my opinion, over 70% of forex trading has to do with psychology. The way you view the market, your belief system and your expectations rule your entire trading system.
Just like those passengers who run and yell after every bus, you will get worn out, and may even give up on the opportunity of ever becoming a professional trader.
I saw a few of those passengers finally get into a bus, but they looked so stressed. I am sure if any of them was going for a job interview, he or she may find it difficult to give their best to the interviewer, and we know too well that: “first impression matters”.
3. The cantankerous passengers:
Just when I thought I had seen it all, I Suddenly saw 3 passengers running after a Keke that had just one empty sit left. I was curious to see how the whole drama would go.
As the Keke slowed down for one of the passengers to get in, the last of the passengers pushed the two passengers ahead of him with such intensity, that both fell to the floor.
As both passengers got up, a series of punches were exchanged. It took the help of both passersby and other passengers to calm the storm at the bus stop.
As I enjoyed the ride of the Keke I was in, I realized that those passengers who fought at the park where those traders who never got tired of dishing out negative or derogatory comments in trading groups, or other groups on social media platforms.
These group of traders get frustrated by constantly experiencing the unmerciful wrath of the market. This daily or weekly emotional setback gets the better part of them and instead of reaching out for help, they spend their time pouring out their venom on other traders, trying to debunk a mentor’s trading system or the trading beliefs of other traders.
These traders end up going nowhere in their trading profession. Most times they resign to fate by either metamorphosing into the forex gamblers or they just stop trading all together, believing that forex trading is one big scam.
4. The patient but observant passengers:
As the Keke I was in drove through the streets. I began to notice that my co-passengers were those same faces at the park that looked unperturbed all through the drama that ensued.
They picked a spot at the bus stop, they patiently waited for the next Danfo/Keke, they were observant, and they never got distracted by all the madness that ensued at the park.
I suddenly realized that these are the traders that come into the business with not just an open mind, but with laser sharp focus. They brush aside distractions in a forex group or trading forum, pick up a trading style that appeals to them, reverse engineer it and rebuild it to suit their personalities.
Though building the psychological part of trading could take time for most traders, these group of traders have a shorter learning curve because they get into this profession fully prepared for what’s to come. They do not entertain distraction.
In Conclusion
That said, I was only fortunate enough to observe the entire event that unfolded, simply because I was not in a hurry to get to my destination, hence, I was least distracted. I may not have been immune to the entire event, if I was behind schedule… Who knows.
The moral behind the story is simple.
If you ever wanted to go into forex trading or any career of your choice, ask yourself two questions:
- What do I need in order to become successful and
- What am I willing to sacrifice in order to become successful.
Never go into any career with solely thinking about the money to be made. Remember, every successful trader you admire today, has paid the price one way or the other.
Don’t be caught in the traps of the crowd mentality
