How easy will it be to replace it?
What else would you do?
Will you try to replace it with another financial related job/profession or you would look elsewhere?
These are questions that traders are seldom asking themselves. They usually don’t come naturally and only occur once you have a certain amount of trading years under the belt.
Should I stop trading even if I am consistently profitable?
I have been asking myself this question and I find it quite hard to find an answer. Trading has been with me since 2003 and I feel that although trends are changing and money is always changing hands, the business is always the same.
Why you should stop trading if it is profitable for you?
If you were to choose again, would you have chosen trading as your job/hobby?
I have found out that the right answer for me is to try to help other traders with my knowledge. I have found a balance between trading and sharing my experience with others keen to learn.
I would choose trading again and again over anything else.
But why?
Being probably the most challenging discipline, trading is also the easiest to quit. Traders come and go; rise and fall every year, month, week…
What sticks to the Wall after the trading decisions have been made and “thrown” against are only the most disciplined amongst the traders.
Losing is one of the major reasons that lead traders to quit so soon… And I don’t blame them.
I like to believe that it is my persistence and consistent results in trading (especially in the later years), but must say that luck has had its role, too.
Not the type of luck that you are thinking of, but the luck of my personal circumstances, time and character.
I have been lucky enough to be given a chance to trade in some of the leading prop trading houses in London.
I have been lucky enough to have met some great traders in my life who helped me a lot in growing as a professional player in the markets.
Not so lucky are others…
Would I have stopped trading if I was not that “lucky”?
Probably yes.
I strongly believe that traders are built and not born. If I did not have the chance to be in the right place surrounded by the right people, I might have chosen the “quitters path”.
In the end, we are all just human.
On the other side, I would not say that luck has been the driving force for my consistency in trading and why I have not stopped trading.
I might have been lucky according to some or not so lucky according to others, but one thing is certain- I have never taken any shortcuts in trading.
Indeed, shortcuts in trading equal mistakes and usually lead people to stop trading.
Therefore, it seems to me like I might not have quit trading even if I was not “that lucky”.
Why some successful traders stop trading after a while?
Yeah right.
I still have not met a trader who has been consistently beating the street and quit once of a sudden.
With age, some of the professional traders I know tend to reduce trading but don’t completely stop it.
Profitable traders usually want to help other traders learn. I must say that it is not that easy and although a lot of people want to make you believe it is, successful trading takes time and dedication.
Therefore, successful traders don’t stop trading- they either reduce trading with the years or start helping others… or they do both.
Should I stop trading if I am not successful?
You could.
Or maybe you should not.
It really depends on your personal circumstances. Ideally, you would have another job and try to develop your trading skills in parallel. If you see that you start to be consistent for a few months, you should probably continue trading.
If your trading results are fluctuating wildly, you might need to work on your money management skills and try to improve the general understanding of risk.
If you are consistently losing money, you should try to stay away from trading. It is probably not for you.
One statistic says that over 95% of retail traders are failing. If that is right and if 100 people are reading this article right now, chances are that only 5 of you guys will be profitable in the long run…
If you stick to the rules of course that led you to where you are when you are successful.
So, would you stop trading?
If you had to stop trading tomorrow how much would you miss it?
If you are part of the 95% or you just don’t feel that trading is right for you, you should probably consider your other options.
What else are you good at?
Why would you miss trading if you stop trading?
If you stop trading, what other challenging projects can you find? Maybe you can improve your skills at coding or learn a new language. Maybe you can take a gap year and travel the world…
The possibilities are immense and you have the final word!
In case you want to join the 5%, you need to be ready for a lot of sacrifices, sleepless nights, persistence and no guarantee that it will all work out.
Are you ready for it?
This material is written for educational purposes only. By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever. Trading and Investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader. The author may or may not have positions in Financial Instruments discussed in this newsletter. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results.
Editors’ Picks
EUR/USD stays well offered below 1.1800
The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.
GBP/USD reaches multi-day lows near 1.3500
GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.
USD/JPY holds gains near 154.00 ahead of the Fed’s minutes
USD/JPY retraces Tuesday's losses and returns near weekly highs in the area of 154.00. The US Dollar trims losses in quiet markets with all eyes on the Fed's minutes. Weak Japanese GDP data resurfaced concerns about Japan's fiscal stability and halted JPY's recovery.
Editors’ Picks
AUD/USD: Further weakness could retest 0.7000
AUD/USD resumes its decline, leaving behind two daily gains in a row and approaching the area of multi-day lows in the 0.7040-0.7030 band ahead of the opening bell in Asia. Moving forward, the Aussie is expected to remain under scrutiny in light of the publication of the jobs report in Australia.
EUR/USD stays well offered below 1.1800
The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.
Gold battle to regain $5,000 continues
Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.
Australia unemployment rate set to edge up within overall strong labor market
The Australian monthly employment report is scheduled for release on Thursday at 00:30 GMT, and market participants anticipate a modest increase in jobs in January. The Australian Bureau of Statistics is expected to announce that the country added 20K new jobs in the month, while the Unemployment Rate is forecast at 4.2%, up from the 4.1% posted in December.
Mixed UK inflation data no gamechanger for the Bank of England
Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.
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