Trading Myth vs. Reality:
''Why Realistic Expectations Matter''
I was speaking with a trader today who was feeling like he wasn't progressing even though he has been profitable every week since January.
This is what he said...
''I was wondering about some frustrations that I had today. I think they have been growing because I feel I should be doing a lot better than I am. I am not doing bad I have managed to close every week in the profit except the very first week that I started my live account back in January. Is it normal to have these kinds of feelings?''
I went on to explain to this trader that he was in fact doing amazingly well and that the real problem here was not in his trading but in his expectations for trading.
Trading Truth #1
You need to have realistic expectations
You are not going to be profitable every day, week month, or sometimes even for a year.
The very best traders in the world on average make 20% a year which is just 1.66% a month.
So if you are doing 2% or more a month this makes you an elite trader!
I think the main reason why traders think they aren't doing as well as they should is due to all the marketing which have made it out like you should be making 10% a month consistently without fail.
Which all just creates unnecessary anxiety for the newer trader and then leads them to take 2 steps back instead of 1 step forward.
You've probably seen the BS marketing of the millionaire trader driving to beach in his Lambo and making 100% returns in 1 trade!
(I've never understood the trading form the beachside, we all know they can’t see S*** on their laptops in the sun anyways 😂)
The best thing you can do is just remove all of these those toxic people from your socials.
Trading Truth #2
Another point to make that no one talks about is capital, if you are underfunded then these returns are going to be very disheartening.
Making 2% a month on a $100 or $1000 isn't going to cut it.
And I totally understand the frustration...
But we are now blessed to be in an era where we have prop firms.
Slow is fast in this game!