Home > Uncategorized > Unrealistic expectations

Unrealistic expectations

One of the biggest reasons that the failure rate is so high for new traders’ who enter the business of short term stock trading is unrealistic expectations.  After interviewing thousands of potential candidates I have found this to come up during the interview.  The typical candidate will say that they are “looking to make a $1k a day”.  I say ok, that is a good goal!  How soon would you expect to get to that level of earnings? and there answer is immediately!  Of course my next question would be, how much experience do you have? Have you ever traded for a living before?  Common answer: NEVER! It appears that most people have been reading stories of the internet boom in the late 90″s, when  day traders were making as high as $300k a day in some cases and in fact almost anyone who tried to trade made money.  Times have changed!

The point that I am making is that is great to have goals, especially in the world of trading, however they must be “realistic” in regards to your experience.  If you have never traded before then you must lower your immediate goals.  I will typically say, lets shoot for $50 a day first and lets try to accomplish this 7 out of  the next 10 days. Typical answer:  ‘I did not get into this business to make $50 a day”.   My answer: if you cannot make something as little as $50 a day, CONSISTENTLY, how do you expect to make $250a day or $500 a day?  At Keystone, we are more concerned with consistency, then anything else.  We have seen the traders who have big swings, make $3k, lose $5k, Make $5k, lose $7k and the common theme is that they are out of the business within 2 months.

So all this being said, if you are new to this business, take it slow, it is not a race, it is a marathon.  It is about building yourself a long term profitable career as a stock trader, not about rolling the dice to try to get rich.

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: