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Everybody gets what they want out of the market

This is one of the quotes about trading that stuck with me. I googled it and it's from Ed Seykota, I probably read it in one of the Market Wizards books, which I can highly recommend.

The exact quote is “Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money.”

Now this applies especially well to the retail world of traders. And it's one of the first things I tend to ask when coaching someone: "Why are you trading". Now of course the answer "to make money" is the one that comes back the most often. And to be honest it should be the #1 motivation, even though it helps tremendously if you enjoy trading and especially the process of research and development to gain an edge in the markets.

But what are you really in for? I know for sure that many traders out there are just trading out of fun. For whatever reason they're bored and need some excitement in their life. Or they're just gamblers who could also have ended up in Poker or sport bets. Then they'd get ripped by the professional poker players out there...

So really ask yourself why you're trading or why you want to get started. Do you really want to learn a new, complex and difficult business from  scratch? One where you're competing against some of the smartest and most competitive people in the world? You're ready to put in the time, nerves and money needed to get started the right way and keep on going even though the market shows you the finger again and again?

If so congratulations! So far I haven't found another profession that's as challenging and interesting day in and day out as trading. I love waking up and knowing what I'm up against. Knowing I might find a new little edge today in the markets. Going through my trading routine and enjoying the freedom trading provides. It's also one of the most scalable businesses out there and it has many other advantages...but to make it here as in any business you'll need to do some hard work that isn't always exciting.

Now if you're just in for the exciting ride, that's fine too! As Seykota said, "Everybody gets what they want out of the market". If you want a fun ride, you'll get it, again and again. Just put in some trades because "the market looks like it's going up", leverage up those positions and then watch every tick on the chart while keeping a close eye on your P&L. Sure you'll blow a few grand every now and then but that's simply the cost you pay for the ride. Just be honest to yourself and simply enjoy it! We're happy about you providing us liquidity just where we might need it ;)

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Comments 4

Jean1975 on Friday, 22 April 2016 10:55

Great post. I don't think that the desire of make money alone will be enough to make you a trader.
I think that if you are driven only by the desire of money you will never reach the excellence.
According to my experience the best things are done when you put in genuine passion and interest in what you do.
Without passion and interest the results (if any) will slowly come with great pain and effort.
Also with passion and interest the results in trading will come with great pain and effort but they will come quickly and at least you will enjoy the ride
Trading is a great job. It requires complete dedication but in return gives you complete freedom and a lifetime learning experience. It is worth the pain!

Great post. I don't think that the desire of make money alone will be enough to make you a trader. I think that if you are driven only by the desire of money you will never reach the excellence. According to my experience the best things are done when you put in genuine passion and interest in what you do. Without passion and interest the results (if any) will slowly come with great pain and effort. Also with passion and interest the results in trading will come with great pain and effort but they will come quickly and at least you will enjoy the ride :) Trading is a great job. It requires complete dedication but in return gives you complete freedom and a lifetime learning experience. It is worth the pain!
Marco Mayer on Friday, 22 April 2016 11:46

I couldn't agree more! Now most people who come into trading think this is an easy way to make lots of money. But actually it's not, you have to work really hard to become profitable in trading! Now I love this and wouldn't want to do anything else, but otherwise I probably would just go and "have a job".

I couldn't agree more! Now most people who come into trading think this is an easy way to make lots of money. But actually it's not, you have to work really hard to become profitable in trading! Now I love this and wouldn't want to do anything else, but otherwise I probably would just go and "have a job".
Jean1975 on Friday, 22 April 2016 12:38

In my opinion the hardest aspect of the whole learning process is keeping on trading when you are a consistent loser.
I think you know it better than me because probably you have been there before.

To learn the trading job (as any other job in the world) you have to do it. And when you are a newbie you have to pay the market for the tuition fee for almost any trading mistake that you are doing.
Therefore to learn trading business you have to be prepared to:
1) Work hard on a daily basis in order to acquire the knowledge needed for trading successfully
2) Be a consistent loser. At the beginning you will work hard day after day and as immediate result you will have an equity curve which is consistently heading south

This is definitely not for everyone. I think that few people are willing to really put in the effort needed to master the trading business.
Before mastering the market you have to master yourself... It's easier to just go and "have a job"

In my opinion the hardest aspect of the whole learning process is keeping on trading when you are a consistent loser. I think you know it better than me because probably you have been there before. To learn the trading job (as any other job in the world) you have to do it. And when you are a newbie you have to pay the market for the tuition fee for almost any trading mistake that you are doing. Therefore to learn trading business you have to be prepared to: 1) Work hard on a daily basis in order to acquire the knowledge needed for trading successfully 2) Be a consistent loser. At the beginning you will work hard day after day and as immediate result you will have an equity curve which is consistently heading south This is definitely not for everyone. I think that few people are willing to really put in the effort needed to master the trading business. Before mastering the market you have to master yourself... It's easier to just go and "have a job"
Marco Mayer on Saturday, 23 April 2016 03:46

That's right, it's almost impossible to not lose money in the beginning. But I always knew in the back on my mind that once I become successful in this, I'll make it all back in spades. The key here is to start small.

Another thing I'd like to add is that this consistent loser period can be significantly shortened by learning from a real trader. Sure a lot of information is for free out there, but there's a reason it's for free. And at the end I think most beginning traders would profit more from putting money into trading education than blowing it into the markets again and again.

Have a nice weekend!

That's right, it's almost impossible to not lose money in the beginning. But I always knew in the back on my mind that once I become successful in this, I'll make it all back in spades. The key here is to start small. Another thing I'd like to add is that this consistent loser period can be significantly shortened by learning from a real trader. Sure a lot of information is for free out there, but there's a reason it's for free. And at the end I think most beginning traders would profit more from putting money into trading education than blowing it into the markets again and again. Have a nice weekend!
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Saturday, 16 December 2017

Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.