The Joy of Full-time Trading
Trading full-time does sound risky to many people. However, I always tell people that as a full-time trader, I remain a rather risk-averse person. Doesn’t it sound contradictory that a risk-averse person can trade forex full-time, and rely on no other sources of income?
The way I define risk is different from common perceptions of risk. Whenever you hear someone remarking that, “It’s a risky thing to do!”, what he really means is that there’s a high chance of failure, because many (or most) people have failed in it!
To me, risk comes from not knowing what you are doing.
As such, even investments that appear very safe, e.g. buying and holding stocks of large and reputable companies, can be very risky if you only rely on hearsay and public opinion, because you could be going in at the end of a trend, i.e. near a long-term reversal.
On the contrary, something that appears risky, e.g. options trading or forex trading, need not be risky if you are trained to do it systematically with good discipline and strategies. This is why I have been consistently profitable in forex trading over the last 3 years (every month has been profitable). The fact that I can be profitable consistently, in a relaxed and hassle-free way, shows that it is not risky for me anymore. The risks are still existent, of course, but they are very much controlled and minimised.
I always tell aspiring traders among my students that whether you can become a consistently profitable trader is not a matter of high intellect or good qualifications. Very often, it takes no more than mere discipline and perseverance to become good at this business. It is truly a worthwhile skill to master, for it allows you to remain profitable despite the economic climate, i.e. it is a recession-proof skill that cannot be taken away from you!
