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This was a question that was asked to me on Quora ” Why Doesn’t Everyone Trade Stocks?”. Below is the full question and answer. Also feel free to follow me on Quora here
Q: Why Doesn’t Everyone Trade Stocks?
A: Most people come into the stock trading business ass backwards.They see a movie like Wall Street, Boiler Room or The Wolf Of Wall Street etc and say ” This looks fun and easy ” Throw a few bucks in a Scottrade account and think they will be able to make great financial decisions just by reading the Wall Street Journal and watching CNBC.
Being around the trading industry for over 16 years I have no idea why the masses flood in to the market with little to no training whatsoever, with no experience and yet think they are going to outsmart the pros and make bank. It just doesn’t work that way and why would it. What other career do you walk in to with little education and experience and get a top management position in a few weeks..nowhere. I don’t know why people think stock trading is different. It’s because of this behavior and thinking that attributes to negativity and high failure rate towards day trading
Education is the single greatest asset to a trader and sadly too many people sell themselves short here. It doesnt matter what education you have had prior either, accounting, engineering etc you need specific market trading education to have a distinct edge. The market is a completely different animal and an animal that most of the time that does not make sense. Therefore, people who feel the need to have an answer for everything or traders that are “too smart” often complicate the process and out think themselves.
Contrary to many of the posts below you can in fact make a lot of money in your pajamas as a stock trader and not only do I do that but I know hundreds of others who are successful at it as well, However, I will tell you trading is not easy but then again what is. If you look back on your life everything you ever achieved of value never came easy. Love friendships business or anything you have of value now you worked hard to get and that is also what makes it so special. With every new journey there will be bumps along the road. Not only should you prepare yourself to be challenged you should also embrace those hardships along the way because it’s those very hardships that will build your character and make you a stronger and better person in the long run.
My advice to insure you give yourself the best odds of success would first to find a mentor that will take you under their wing. Someone who has walked that road and is willing to help you avoid the most headaches and hardships possible. Second, start small with your trades, make sure you prove you can be consistent and patient before risking larger sums of money and last do not rush yourself. In my experience those who push to hard to fast or expect to much will be disappointed and probably broke.
If you follow these steps commit to learning and you are willing to make the necessary sacrifices you will be a very successful trader and you will be able to make 6 figures a year in your pajamas just like this dork
The original write up can be read here
Doug
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