are you a trader? maybe

I recently watched an episode of a show called "Suits". In this particular

episode, one of the lawyers represented someone in court that

deals with residential issues. He initially lost the case but the point is that he was an actual lawyer (in the

show) representing someone in court.

We all know that it takes a lot of time, energy, study and money to become a lawyer. They pay a price to reach the status of "lawyer" and to eventually

make some solid income.

Not everyone makes it.

Years ago, I went to small claims court to represent someone in regards to a

claim about a vehicle they bought. The car was a lemon. I can speak well, did my research and did a pretty good

job as we won a judgement for the cost of repairs.

Does that make me a lawyer because I argued a case in court?

No.

Which brings me to this: "95% of traders fail at trading"

(I've even used that line before).

You've read that stat before and it paints a pretty grim picture of the

route most traders go.

I am sure many have had the "what's the use" thought pass through their

minds and perhaps did not even bother to take the first step.

I don't know if the number is accurate but what gets me is the term "trader".

Trader: a person who buys and sells

goods, currency, or stocks.

If you buy a trading system for example and take a trade, does that

make you a trader?

In the literal sense, it appears so.

But in reality........

I wasn't a lawyer in small claims and taking a trade does not make you a

trader.

Going back years, I remember when I was asked my goals for trading my

response was: "To become a trader". It wasn't "to make money" as I figured

that as a "trader", I would make money.

I knew there would be losses and I also knew that the key was to keep losses small and go for wins bigger than the

average loss.

To keep losses small required: knowing when the trade was not

working and execute the stop without hesitation.

To get bigger wins: keep fear and greed from dictating when to take

profits.

Not being concerned with making money at the beginning allowed me to

focus on attributes which I felt (and saw) would make a "trader". Losses

were not an attack on my trading choices or me as a person but were a

learning experience.

This prevented, for the most part, revenge trading and over trading to

make up any loss I had.

In regards to a trading method, I realized that system jumping for the

next shiny object was the exact opposite of being consistent. Of

course the trading style had to "fit me" but that could never be used as an excuse to jump to the latest hype.

Was it tough?

You better believe it and during the tough patches, I still have a few

demons to wrestle with but I win those matches.

A lot goes into becoming a trader aside from placing a trade. My five year old can push a button and enter a trade.

Much has to do with mindset because once risk and money come into play, humans don't always think straight.

It is using your screen time properly to tweak and retool when needed through constant self appraisal.

As my collegue James has written, not everyone can structure their learning

or can access to a trading mentor. Many need a guiding hand to keep

them focused on the prize and that is where trading education through a

reputable company such as PTU (www.premiertraderuniversity.com) comes into play.

Regardless of the route you take, remember that trader is not really a verb. It is noun and much goes into making a trader and often times the price is too high for many to pay. For those that do, often times they are

rewarded.