Difficult, difficult to the point that you can't imagine.
However, it's not that there are no paths to take.
First, let's talk about why it is difficult ---
From an objective environmental perspective, in the market, there are seven losses, two breakeven, and one profit. How to become that one? How to equip yourself with the ability and skills? This is the first challenge.
From a family environment perspective, most people equate trading with gambling. How to gain family support is the second challenge.
If the above two challenges are overcome, there is still a problem of capital volume. To trade for a living, the money earned must at least cover family living expenses. If annual returns can reach 20%, for a family with an annual expenditure of 100,000, at least 500,000 is needed. For singles, with an annual expenditure of 40,000-50,000, 200,000-300,000 is required... This is already a very ideal state. Honestly ask yourself, do you have that spare money? Even if you do, facing survival pressure, you may feel constrained and anxious. This may not guarantee a 20% annual profit; this is the third challenge.
There is also a hidden fourth challenge, the cost of time. If you spend several years without getting the results you want, it may be difficult to turn back. If you had spent the time spent on trading to learn another skill or to strengthen your career, you might have become an expert or received a promotion in a few years. But trading is not guaranteed; the greater the sunk costs (including time and money), the harder it is to turn back. As you get older, you will feel that the most valuable thing is time.
So, is it hard to make a living from trading?
However, it's not impossible to achieve.
I think the following situation around me is very representative; it's worth listening to:
About two years ago, A reached out to me, saying he had been trading for four to five years, breaking even overall, and truly enjoyed trading. He wanted to learn from me and planned to go full-time in the future, taking the path of making a living from trading....
I told him at that time that if the goal is to trade full-time now, it is highly unlikely to be achieved. The focus should be on the process, not the goal. Full-time trading is something that happens at a certain point in time; it will come naturally, but that point in time is not something you can just decide.
Previously, Yong Ge started learning, and we communicated continuously for half a year, but he disappeared. A couple of days ago, he suddenly messaged me, saying he is now a full-time trader....
I was surprised and also threw the three major challenges mentioned above to him; his response was: they have basically been solved.
Now let's talk about how he solved several challenges:
The first challenge is the technical challenge.
It probably went through three phases:
Phase 1 --
The anxious and confused period was during the half year of learning and communicating with me. He didn't study for long before he started making money, but the process sometimes had big ups and downs. Later, through Q&A and discussions, I pointed out a few reasons to him --
1. Frequently switching cycles and varieties, always looking for signals to trade, thinking that the more you trade, the more you earn.
2. No position management; winning several trades can lead to overconfidence and increase positions, resulting in losing what was earned in previous trades after one mistake.
3. After several consecutive losses, one may also increase their position.
This leads to significant fluctuations in the account, greatly affecting the mindset and causing anxiety.
Then I asked him,
1. Fix one trading cycle with 3-5 varieties.
2. Determine position size based on a fixed loss amount each time.
3. Start with a maximum of 30,000; if trading in the foreign market, reduce it by half.
Phase 2 --
Confidence growth period --- In the time he disappeared, during the first half of the year, he followed the few points I told him and unexpectedly started to stabilize profits, without big losses or gains, and no significant drawdowns, the capital curve became very beautiful. While trading live, he also crazily traded on a demo account; can you guess how many demo trades he made in six months? Almost 2000 trades! It can be said that he completely turned the trading system I taught him into his own, and it became unshakeable.
In the past six months, I believe Xiao A has done very well in the three key elements needed to succeed in the market:
1. Technical management, persistently following one system and set of rules.
2. Position management, not easily changing positions due to different market conditions.
3. Emotional management: When the above two are well managed, emotions naturally improve, and one will not be anxious or afraid due to consecutive losses or become overly excited after multiple profits.
Phase 3 --
The boring period is the current full-time state, making plans, reviewing trades, waiting, and during the off-market period, exercising and fishing....
The second challenge is the understanding and support of the wife.
Over the course of more than a year, Xiao A often took the initiative to share his learning and progress with his wife, showing her his focus and the extensive training he undertook in his spare time, which yielded great results. They also formulated a risk plan together, deciding how much money to use to start and keeping the risk within the plan. They also discussed life planning, treating trading as a serious entrepreneurial endeavor. In conclusion, the final decision was made after mutual consultation with his wife.
The third challenge is capital.
In the following year, Xiao A and a friend each invested 70,000 in the foreign market, using one account with about 20,000 USD. Xiao A managed the trades, sharing the risks and profits, and they achieved a little over 100,000. This can be considered as completing the accumulation of initial capital. The agreement with his wife was to use this as startup capital without additional investment.
This is the story of student Xiao A.
Having solid skills and the ability to earn consistently;
With the support of family, a mutually agreed plan;
With initial capital, a startup mentality, and risk management.
This can be considered the first step in making a living from trading.
Perhaps there will be many challenges to face in the future.
However, the process and experience of taking the first step
can determine the future, as long as -
When the mind is focused, nothing is impossible.
