After reading year’s worth of comments from traders read on Internet trading forums or personal email sent to me from clients, it appears that most people come into trading with very high expectations. In time, reality starts to chisel at their original expectation and view of trading until, for many, it has been reduced to nothing more than a hope of breaking even or a quick exit altogether.

The few that remain in the trading arena after realizing their original expectation isn’t likely to be met have likely learned what the reality of trading is and have come to accept it as reasonable. This is not to say that there is only one reality, for that would not be a correct statement. Rather, it is the reality that pertains to each of us individually that we need to come to realize, accept, and work for us.

Those who remain trading after failing to realize early expectations have come to grips with the reality of trading that pertain to them. For maybe they expected easy riches, but soon discovered that trading is hard work and dedication and the payback is appreciation of capital over time. Others may realize they can make a living off the profits, but it is just enough to live on and is not stress free. Some come to find that reality for them is that it is feast or famine. They go up and down like the markets when it comes to profitability. The reality of trading as I see it is the opportunity to outperform most mutual funds or an interest bearing account at the local bank.

If you are to reap the benefits that are available by way of trading, you will need to come to grips with the reality of trading that pertains to you. Not everyone is going to make a killing in the markets on a consistent basis. You will have your good trading days and your bad ones. If you keep your expectations too high, you will likely become discouraged and lose all your money before you can achieve what would have been your reality in trading, the opportunity perhaps to make a nice return on investment instead of owning Trader town.

So my advice to you is this, if you have not yet realized the reality of trading that pertains to you. Do not expect to take a big chunk out of the market and live high on the hog. Instead, focus on more achievable goals such as improving your trading and making a small percent dividend on your funds consistently. Once achieved, then focus on the next small step beyond and so-forth. If your reality is going to be that you will one-day own Trader town, this will likely be achieved by taking one step at a time rather than expecting the whole planet up front on margin.

Note: About the Author
Rick J. Ratchford is President of ProfitMax Trading Inc. He is a full-time commodity trader for his own account as well as assisting other traders. He has been a computer programmer for more than 20 years and a trader since 1990.