The Multiple Lives of a Stock Trader 5.00 / 5 (100.00%) 1 vote

Whether working part-time or full-time, the multiple lives of a stock trader cannot be undermined.  It is very likely that traders will experience a numerous swings in their careers.  Similar to the markets in which they trade, traders will experience downtrends and uptrends in profit and the odd windfall or crash.  However, if the trader remains vigilant and knows when not to trade and when to actively trade, he or she will stay in the game for the long haul.

There are different characteristics associated with the phases that a trader goes through.  The effects of losses or declining profits can be minimized or better adjusted to when a trader understands the market, the systems that are being traded and how personal profits could be impacted by these factors.  Additionally, it could help psychologically to recognize that all traders experience both the good and the bad.

The Multiple Lives of a Stock Trader

The Downtrend of the Trader

It is very likely that the majority of traders start their careers in a downtrend.  They have identified capital, they typically come to the table with a game plan and they start to trade fully expecting to attain wealth from the financial markets.  However, although a few early wins might be experienced, capital frequently begins to deteriorate or might totally disappear.  Hopefully, during this time valuable lessons will be learned and this loss of capital can be considered as paid education.  Unfortunately, many traders fail to recognize what is being shown by the market and become frustrated that the market is not functioning how they want it.  There are even some traders who berate themselves in such a way that it cripples their ability to carry out proper market analysis.

Often it appears as if a trader has many lives, thus the reference to the multiple lives of a stock trader.  There are a number of traders who experience the wipeout of numerous accounts before finally getting the point.  There are others who experience large swings but cannot seem to reach the profits they desire.  There are still other who lose everything.  Regardless of what the case may be, trading will never be a vocation that runs perfectly smooth.  However, by sticking to well-formulated trading plans and asking pertinent questions, you can steer clear of many of the bumps.