Wednesday, 6 July 2011

Be a Trade King

When you think Investment Bankers such as Goldman Sachs, JP Morgan, Morgan Stanley etc have got over 200 Trillion Dollars tied up in derivatives alone, then it is time to think that as a "Full Time Trader" who possesses proven market experience, you should put your aims very high and should not simply be content with just making a day-to-day living from day-trading. This is more so, if you are trading via a margin account like CFDs or Spread-betting.

What made me write this article was I was chatting to a derivative trader last week who had made a fair amount of money a few years ago and had decided to cut down on his trading size and take things easy and become a Steady Eddie instead of going full throttle ahead and take on the big guys single-handedly!

Now, that may sound extremely arrogant and I bet a lot of you people out there may disagree with what I just said above. But think about it in a lot deeper terms.

Here, we happen to have a guy who has been trading over 15 years and has apparently increased his starting capital by 10 fold, he has seen and gone through everything that a trader needs to come across while involved in the stock market.... things like the bombing of London and Spain, the worldwide shock which was created by the late Osama Bin Laden, the Iraqi attack by the Western Governments and so on, and yet he is virtually throwing all that experience in the garbage bin and is going to be trading just like another trader who is happy with just putting bread on the table at the end of each trading day! This is the biggest injustice that any professional people could do to themselves.

So instead of playing this game defensively, he should have become a more attacking and ambitious trader and should have set himself up with a very high target to achieve. I would have personally gone after making a wealth as high as 2 or 3 Billions at least, after let's say a period of 5 to 6 years. This is definitely achievable when you have the funds, the instruments which the likes of CFD's have to offer, and most of all, the many years of experience, which our trader in this article happens to have possessed -- What he must have lacked I would say had to be self-belief that it was his skills which made him money in the first place and a hunger for being a Trade King.

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