From Newbie to Veteran: Journey of a Trader

I have been trading currencies for about 2 years with my ups and my downs. When I first started I thought it was my straight ticket to riches. What I did not realize is that the journey had multiple stops along the way. I still believe that a trader can live off his or her trading activities, but before it happens, the trader should expect many years of disappointments, small successes and great frustrations.


The act of trading is extremely simple. There are only two major actions: going long or short. If it’s that simple, then why do so many aspiring traders fail? I don’t think I have the definitive answer, but I know it must include a lack of understanding of the markets, the instruments being traded, and finally, a lack of understanding about ones self.


The markets and the instruments can be taught through books, DVDs, seminars and workshops. Unfortunately the most crucial part of trading, knowing yourself, is not easily taught. Malcolm Gladwell’s book, “Outliers: The Story of Success” touches on the idea that it takes time to master a skill. In his book, he promotes the idea that 10,000 hours of work are needed before something becomes second nature, as trading should be.


Ego has probably cost traders millions of dollars in bad trades this year. A certain amount of confidence is necessary when it comes to trading, but the moment a trader becomes overconfident, the market will teach the trader a lesson about humility. Trade the market you have and not the market you want or think you have in front of you. Make sure the reason why you don’t have a clear picture of the market is not caused by your unchecked emotions.