How to make a living from trading?
– Probably one of the most popular statements in the trading industry is “I want to make a living from trading”; many of us enter the trading market wanting to do just that, either to have spare time, the potential income that can be earned, among other things. On the other hand, many traditional investors claim that it is something almost impossible that very few retail traders manage to do and that you will probably end up losing your money. Well, after researching many reports y academic studies on the subject, seeing thousands of traders pass through Swiset and interviewing the best Spanish-speaking traders such as “Alvaro Price Action”, Andres Yepes, Adrian Nardelli, Ruben Cano, Joseht Flores, among many others recognized in the industry I’m going to tell you in this blog my main findings –
Can you make a living from trading?
Yes, of course you can make a living from trading, and yes, you can make a living from being a retail trader, either trading Forex, futures, cryptos, stocks, options, etc. Is it going to be easy? NO, but you that’s for sure something you can achieve. However, the expression “make a living from trading” will also depend on many personal factors such as: how much money you can live with, where you live, how much is enough for you, how much money you have to invest, among other things.
The reality of the trading industry
However, the truth is that very few make a living from trading (general statistics show that 95% of those who start trading, lose their money), many make it look like the best option for life, or as the key to “success”, but the reality is that it is a very difficult profession (not depending on your previous studies); in fact it is sometimes compared to being a high performance athlete, because of the strength it takes to keep going once you have good results. For most of us it might take years (it took me more than 4 years to become profitable and consistent).
That’s why you have to be very careful when you start, keep in mind you shouldn’t enter with really high expectations because, truth is, the could be totally deviated from what is going to be. For example, if someone tells you that you will earn money in less than 6 months in a constant way and multiplying your account, it is most likely a lie; if they offer you a much simpler and abundant life by just simply clicking some buttons from your cell phone, that´s also a lie. The truth is that it might take you thousands of hours in front of the screen (from your computer, not your cell phone) to become a real trader, an expert in chart analysis, in making decisions quickly and effectively and with the mental, emotional and management skills that allow you to be a profitable trader (positive results) and consistent (meaning that those results are stable and disappear easily).
In the following chart I show you the results of a trader, who for years (more than 4 years as of the date of the chart) studied how to perfect his skills, but despite many hours of study, backtesting nights, coffees with friends, multiple academies and different teachers, only managed to SURVIVE the market (and obviously burn a couple of small accounts on the way) and then like many, began to lose money, until he gave up.
On average 80-85% of people give up trading in less than 6 months. As mentioned above, they enter with false expectations, but there are others who persist, continue studying, improving day by day and do not get tired until they get it.
Well, this trader made it. After being on the verge of giving up.
He had to stop for a while (5-6 months) to focus, reconsider some things, but in the end he told himself “if others did it, then why shouldn’t I be able to do it too?” and that somehow gave him hope he would achieve it.
That trader is the one writing these words.
Finally, I would like to say 3 important things.
Trading is very difficult and it is not for everyone. Think very carefully if you are going to give your all to make it.
Yes, you can earn income from trading and make it one of your main sources of it. In fact, your goal should be to make it one of your sources of income; not just, “I want to make a living from trading”, because the frustration of not making it, the negative days/months, will cause you to make bad decisions and lose more than you should.
Some things in life we will achieve, others we may not; others will last for a while, but the most important thing is that we enjoy the journey and learn as much as we can. Trading has been one of my greatest teachers, and much of who I am as a person was trading that shaped me, so, no matter what stage you are in, may the market never stop making you a better person every day.