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Success or Failure

A common question we get during our equity trader open house presentations is : How many of the traders’ that go through your program become succesful?

A good question, yet one that is not so clear cut. Industry statistics will show that anywhere from 90-95% of the individuals who enter the trading business will fail and lose their money.  Why is that number so high?  Well there are quite a number of reasons why. The first reason is that they start to trade with no thought to a trading plan or a business plan.  In other words they roll the dice and hope for the best.  However, even if you enter with a solid plan, it does not guarantee success.  Do you have the discipline to follow the plan?  In many cases the answer is no. Having a plan is worthless unless you maintain the discipline and follow the rules that were in the plan.  One of the other greatest reasons for failure is to be undercapitalized, in other words you are trading scared because you can not really afford to lose the money that you are risking. Lets say you have a plan, you are disciplined to follow it and you have capital to risk, does this assure success?  of course not, these factors will help you, but now you must see how you react when you start to have losing days. do these losing days effect you when you get home at night? do they start to rattle your confidence?

When trading with Keystone, many of these hurdles are removed. Our Equity trader 101 course is a trading plan, as well as a business plan. Once our traders start to trade, we instill discipline in them by monitoring their trades and having intra-day stop losses in place. We make sure that consistency must come before excessive risk is taken.

When interviewing potential candidates to trade our capital, we always look for hungry , driven individuals who we feel have the confidence to be successful as a trader.  Unfortunately there is no perfect science for this. For example, we hired a young gentlemen who had previously been a stockbroker, after 2 weeks of trading, we received an email with the subject line  “raising the white flag”.  Apparently, he had a few losing days in a row and he was emotionally not able to handle it.  This business will test your emotions. Can you step up to the plate and instead of getting knocked down, get up and be more determined to succeed.  If so, then you will indeed be a Success in the world of online day trading!


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