As promised in my previous article, i would start here with explaining my journey from being a novice in the trading world to becoming a full-time trader, as i am now. I describe my journey not because i am a great trader or that i have achieved something great in my life. Far from it. But i always use me as an example in describing good and bad things in life. The reason being that i am someone whom people can relate to. I am someone whom many people meet in flesh and blood, see my writings, see my trading calls, see me here on this site and see me on twitter. So people can relate to me. I could talk about Bill Gates or Warren Buffet but even I cannot relate to them. I have not seen them and they grew up in totally different circumstances and totally different times that what i had when i grew up. This is the only reason that i take myself as an example.
My journey began in 2001 as a stock trader and now i trade forex exclusively and full time. I trade for a couple of funds, have my small wealth management company, run signal services and trade for myself. This is where i am now. Why do you need to know my story ? This is because it will hopefully give you some insights on the hard work that is involved and hopefully this article will bust some myths. All articles and media talk about how people became rich overnight or at 20 years of age. Even if they write about someone who worked hard, the hard work part is described in just 2 lines as if it does not matter. We need to understand than hard work is what matters.
I started out in the year 2001 as a stock trader in the Indian stock market. I was new and had no idea of what trading was. Like many other educated Indians, i was a software engineer and started trading as a part-time activity. Why did i enter the stock market ? If i think about it now, i really am not sure. I was not out of money. Many traders now make the mistake of trading to make their basic ends meet. I did not make this mistake. My life never depended on trading, when i started out. Even when i lost a lot of money, i always made sure that i invested only that money which was in excess and which i could lose. Many traders invest as if their life depended on it. Even when they lose, they borrow, take loans and invest, which is totally wrong. You should never do this, especially when you are starting out. You are bound to lose when you start out and so you should always be ready for that. Many books from many traders talk about how they borrowed money and invested and then they lived happily ever after. Or they talk about how they earned $0.5 a day (in 1960s) and invested $0.2 of that and they hit a jackpot and became rich. Sorry. But normal, practical life does not work that way. This is Myth No. 1. If you start out trading by taking a loan or investing 50% of what you earn, you will suffer and ultimately fail. 1 in 100 may survive but those are exceptions. Never borrow money to trade and never invest more than 10-15% of what you earn. I was 24 when i started. I came from a decent family and there was no shortage of money. So, there was this tendency to over-invest and to borrow and invest but thankfully, i did not do it. And i have never regretted that.
Will break more myths in further articles.
I do run a signal service with has a very highly unique offer which creates a win-win situation for all. If you are interested, please contact me through twitter or email ([email protected]).
Do follow me on twitter (http://twitter.com/ns_karthik) where i post some of my trades in real time.
Winner’s Edge Trading, as seen on: