Did you start trading with the belief that you’ll make money quickly?
You’re not alone!
Most people see a news item about a new float doubling in price on its first day. Or read about a penny dreadful stock that has tripled over the past week. They can’t get set up quickly enough to start trading.
Yet what new traders read and see is a far cry from reality.
Trading is a simple process mechanically. You just hit the BUY or SELL button and you’re away. Yet anyone who has been in the business for long enough knows that it is far more complex than this.
The ‘Fast Money Syndrome’ is a serious affliction for those new to the game. And if we are honest with ourselves, it is something that has affected each of us at different stages of our trading journeys. Greed is a powerful emotion. Yet you don’t realise how powerful until you start a pursuit such as trading.
The best research you can do before you start trading is to research yourself. Because when it comes to trading, YOU are going to be the weakest link in your trading plan.
Read the following behaviours, then note down whether you have fallen prey to any of these during your trading career. They are snapshots about yourself, your personality and your motives. Each behaviour needs to be raised into your consciousness if you are to have any chance of making it in this business.
1) You Trade for the rush
2) You’re stubborn
3) You trade someone else’s predictions or tips
4) You over trade
5) You trade too much capital on individual trades
6) You cut winning trades too early
7) You cut losing trades too late
8) You don’t use stop losses
9) You trade too many specs and illiquid markets
10) You trade impulsively
All these behaviours are part of the Fast Money Syndrome. Wanting to take short cuts so you can be as successful as possible in as short a time as possible.
Yet speed trading is probably about as successful as speed dating.
In both cases, success only comes by getting to know what’s in front of you over the longer term. It takes persistence. And an ability to withstand the ups and the downs. The wins and the losses. To figure out what works and what doesn’t. To make adjustments, and above all to take the time to listen to what's in front of you. And to not take things too personally.