Warren Buffet is a self-made billionaire; he is the 3rd wealthiest man in the world and he has been for many years now. In my opinion this proves that trading is a great alternative to create huge wealth. Of course when you do it in the right way.
In this article I am going to reveal what in my experience is the single biggest reason some people can’t make money in the market, and what the rich know that gives them the upper hand.
Markets move when they want to move
“Good profits simply are not inconsistent with good behavior”
– Warren Buffet –
Yes, you can trade to become a millionaire, but you need to have financial freedom before you even consider starting a career as a trader.
Having financial freedom means you have a reserve of money that will allow you to pay your bills no matter what. It also means that you don’t carry any debt.
The single biggest reason people lose money in the market is because they don’t trade with a clear mind. They have bills to pay, and the money they use to pay those bills depend on the profits they make through their trading. This forces them to take excessive risks, and to trade with bad timing.
Let’s follow the lead of the greatest investor of all times. Even though Warren Buffet is a billionaire he lives in the same house he bought for $31,500 dollars in 1958. He drives the same car he bought ten years ago, and his annual paycheck is 100,000 dollars.
This means that even if he loses billions his lifestyle will not be in jeopardy. This gives him a clear mind to trade. And this mindset allows him to find opportunities that those traders who have their emotions tied to the market will never see.
Markets move when they want to move, and you need patience to make money in this business. Good profits are not inconsistent with good behavior. So, as long as you have a system with positive expectancy, in other words a system that makes more money than the money it loses, and you trade it consistently, you will succeed in this business.
One final piece of advice…
If you want to become a full time trader, first you need to learn to spend your money wisely. This will allow you to reach financial freedom very fast, and give you a solid ground to amass a huge fortune.