The issue with new traders is pretty well shown in this threat.
New trader comes and asks “can i make a living out of this?” And there is a bunch of guys who say “yes, all other people are dumb but if you do this and that then you will make it”
So the answers people give are:
1st. Faith
2nd. Hope
3rd. Rumor
4th. Dedication
My answare was statistics which show how little of a chance you have.
You can bet your next years of life and your capital on hopes, faith, rumors and dedication or you can do what every intelligent trader would do = bet on the higher odds.
The higher odds are that you wont make it.
This in itself proves that trading is not for traders as the basic principle for a trader is to go with the higher odds.
Why is this important you ask?
You can pour your capital into trading or something else.
You only have 1 shot. You have 1 capital (saving) and you must risk it to succeed.
You can risk it on trading where your chance of succes is 0,1 to (best) 3% to make a living out of it (making living out of it does not mean RICH)
or you can risk it on a real business. 85% of businesses fail. Thats still better odds than in trading (at least 5 times better) - but if you are skilled in the field in which you open a business (a chef opening his own restaurant for example) your chances of sucess rise to 75% (!!!)
And a good restaurant can make a very good living.
Car retailer.
Real estate broker.
Whatever you already have knowledge in.
A old guy told me after i graduated my master in a conversation:
He: and what u gonna do now?
Me: i dont know, ill try something new and interesting i guess.
He: why? For a new field you need years of learning it enough to make a competitive edge over your peers. Whats the point of doing this if you already did 25 years of school, of which 6 was a master specialization in a business that generates money? In this business familiar to you YOU ALREADY HAVE A COMPETITIVE EDGE so whats the point of wasting years to learn some new stuff?
Me: hmmmm… yes thats very logical
So i stayed in my field and made/make much more than a living.
So? Whats the point of starting in a new field where you are at a big disadvantage, then learn years just to be average and in the end spend 15 years to be above average and maybe or maybe not make money while in those 15 years you needed an income to supply your trading activities?