Do you have a time limit where you either learn trading or quit? For example you give trading six months, or one year or two years. Then, if you haven’t figured it out by then, you decide to just quit. There are all sorts of people that impose some time limit on themselves. All sorts of people do it both in trading, in business, in entrepreneurship, in learning a new skill.
Such time limits are extremely poisonous and completely antithetical to trading success and order flow trading success.
What if you were about to cross the finish line and achieve profitability in the 12th month of learning? Would you quit after the one year is up? Of course, the problem is that you do not know if you will make it in the 6th month, 12th month, or 27th month. That is the problem people have. It is the uncertainty that is killing them. They want to know when they will finally understand the markets and be able to trade them properly.
The traders who fail have applied catastrophic stop losses within their own lives and have decided to cut their losses of time and energy and just quit trading. You should use stop losses in the markets for sure, but not for trying to quit your trading career.
I spent around two years failing in forex before achieving success. Two long years. If I quit in the 12th month, or in the 23rd month I would not have achieved trading success. There would be no Grkfx forex factory posts. There would be no OrderFlowForex.com. All would have been non existent.
Most people don’t know this, but George Soros actually lost money in currency trading during the years of 1980 – 1984. His big trade that put him on the map as far as currency traders was during the 1985 Plaza Accord. In the book Soros: The Life, Ideas, and Impact of the World’s Most Influential Investor, Soros is quoted as saying the Plaza Accord Trade was:
the killing of a lifetime…The profits of the last week more than made up for the accumulated losses on currency trading in the last four years.
Soros was short USD/JPY going into the Plaza Accord. After the news broke out he loaded up on more USD/JPY shorts as well as buying Deutsche Marks against the U.S. Dollar. USD/JPY fell 50% or 12,000 pips within three years. Soros didn’t catch all of it, but he caught a good chunk of it. No wonder he called it the killing of a lifetime.
People who choose to just quit trading are going to have to live through life never knowing whether they really could have made it or not. They have to live through life with the long term pain of failure. And that long term pain of failure can really take its toll on you over the years. It can actually be far worse than the short term pain of breaking through the barriers to trading success.