I want to return to an image we discussed several years ago, showing the various stages of a typical traders journey.
There may be slight variations for some traders, but the reality is that for the majority of us it’s a step-by-step process of growth and development.
And that brings us to today’s topic.
In which I want to focus on one stage of the journey.
And the CRITICALLY IMPORTANT message:
I am absolutely stunned at how many traders contact me, desperate through having lost their jobs and yet feeling that the best option to provide for their family is through trading.
Despite no history of profits. Or minimal at best.
Do NOT do this.
I have NEVER come across anyone who has managed to do this, with back-to-the-wall desperation in having to support a family and household.
Maybe there are some out there who have been lucky enough to have fate smile upon them and grant this wish. But for every one of these people there are likely a thousand more who have been utterly destroyed by this decision.
Progress requires safety!
James Clear explains this idea perfectly in this tweet:
You need to be able to take a loss.
It’s a normal part of your edge. And during your learning stages, it’s a fundamental part of your growth and development.
And without safety, the pressure of providing for your family will destroy your ability to make quality decisions for both trade entry and trade management.
You need to be able to take a trade loss without stress on your finances and the safety of your family.
You need to be able to take a session loss without stress on your finances and the safety of your family.
Even a weekly loss.
Depending upon timeframe and strategy, maybe even a monthly loss.
You need to be able to take a loss to the maximum drawdown limit of your trading plan… without ANY undue stress on your finances and the safety and security of your family.
If you can’t do that, your first priority is to find an alternate source of income. I know that sucks.
But it is essential for ensuring the safety and security of your family.
AND THEN, find a way to trade alongside this.
Safety first. Then trade.
It doesn’t work the other way around.
Best of luck,