Trading is NOT risky, the trader is.

Algoinsights Blog, Forex trading, Risk Management, Success, Trader's Risk

Many traders will not agree with the title of this blog article. To them trading is the riskiest thing they have ever encountered in their life.

When asked them for their reasons, they will not hesitate to show me and tell me their “war” stories on how they had burnt their trading accounts over and over again.

Whenever I hear them talked like this, trying to “prove” to me that trading is a risky business, I laughed inside of me.

Warren Buffett said, “everything is risky if you do not understand what you are doing.”

Trading and investing vehicles are to make you RICH

Like I have mentioned in my previous blog articles that all trading and investing vehicles exist to make you rich. And if you are NOT getting any richer with any of the trading and investing vehicles, that only means you do NOT know the rules to be successful in them. Period.

This is my personal belief and it is the truth as far as I am concerned.

Take for example, 2 individuals who traded the same pair of currency say, EURUSD or traded the same stock say, Apple. Very often you will see one of them turns out to be the winner and the other loser after a period of time.

Why?

Similarly, you can observe 2 professional lawyers or CPAs or Insurance Advisors etc., one will be bursting with business that he can hardly cope and the other is desperate for business.

Why?

They are all in the same trade and profession. Why the different results?

ANSWER: The problem lies in the individual, NOT the trade or the profession. In other words, YOU ARE THE PROBLEM.

The worst thing that could happen is ….

The worst thing that could happen to a trader is a season of winning streaks. This is the turning point where the trader becomes overconfident and complacent. They start to think they can control and conquer the markets. They started to take more risks by overtrading their accounts, over leveraging their accounts, and breaking their own trading rules regularly etc. Greed sets in. Finally, they crashed their accounts and returned to their jobs.

Having worked with numerous traders and investors, this seems to be the vicious cycle to their downfall in their trading and investing career.

Then they started to tell everyone they know their “war” stories that trading and investing is a “risky” business to be in without knowing that they are the risk in the first place.

Why history repeats itself…

History repeats itself because most of us DO NOT learn from our past mistakes. Our education system has not taught us to admit and learn from our own mistakes but to shun them. Instead we have been taught to cast blame for our mistakes. We look for a scapegoat or find a reason or tell a story to cover our mistake to get out of a problem. This is the reason why history repeats itself. WE NEVER LEARN.

We need to understand that regardless of the industry you are in, making mistakes is part of your growth process in that industry and in your life.

If you have not made a single mistake in life, then you have not grown at all. You would be similar to a piece of deadwood floating on the river that is going downstream. Period.

William James was asked, “what’s wrong with men today?”

He answered, “men simply don’t think.”

Personally, I like his short answer. His answer tells me that he has depth and substance. And this is the reason why he has been the top psychologist in the world during his time.

I love mistakes

Because of runaway personal ego, most traders are unsuccessful in their trading activities. In fact, they are mostly unsuccessful in their life and all their undertakings as well without a doubt.

If only they can really sit down and think clearly about their mistakes, actions, and problems, they would start to become more successful in life. GUARANTEED.

Love mistakes. Embrace them. Learn from them. They are teaching you to go to the right path and make you a more successful person and/or trader.

Oh, how many people would share this same attitude towards mistakes like I do?

Coming from an engineering background, I have a law (my personal Law) that I apply to my life and I call it – Law of Elimination. I practice this Law to eliminate mistakes from my life from the day I started my engineering career some 25 years ago.

I told myself, “if I can eliminate 1 mistake a day from my life and my engineering career, I would have eliminated 365 mistakes in a year, and I would be many times more successful than my peers.”. This Law has proven true in my life since then.

For the record, I was promoted 3 times with salary increases each time in my first 15 months with the Japanese MNC. All my seniors were shocked and awed. I broke their history and record in that company. Then I left the company to start my own and focus on building my passive income.

Take control of yourself

I am thankful that I have been instrumental in helping many of my close clients and friends to increase their net worth and wealth through trading and investing in financial assets.

Actually, increasing your net worth is not rocket science. You just need to have control over yourself. You just need to know who to follow, and what to follow. Be a diligent student. Be willing to admit your mistakes and learn from them. Be patience and you shall be the richest among your peers.

Thank you for reading my blog article.

See you at the top.

Victor Ang

CEO & Founder, ALGOINSIGHTS PTE LTD