If mainstream media is to be believed, the life of profitable stock traders is quite glamorous. Lots of money, full economic independence, and too many holidays in luxury destinations…
But, when looked closely, things aren’t exactly like that. In fact, the reality is far from it. And it is something the new traders fail to recognize when jumping in the game. And, unsurprisingly, the majority of them eventually end up losing big.
If you’re a beginner, it’s very crucial that you’re in know of the realities.
Here are three unexpected challenges that profitable stock traders face:
1. Sky-High Emotional Stress
When trading, the FOMO always exist. Even the best of traders, at times, fall for FUD.
To stay ahead in the game, they are always required to stay at the edge of their seats, continuously looking at the trends, analyzing the charts and finding the right opportunities.
And then comes the stress of losing money. It’s difficult to not act emotionally following a loss; it’s difficult to wait for the apt opportunity to recover that loss.
It all ends up taking a toll on traders’ physical and mental well-being. In fact, the burnout rate among them is quite high.
Almost all successful trades go through such emotional distress on a very regular basis, which makes their lives far from comfortable.
Recommended Read: Developing the Right Trading Technology
2. Learning to Work in a Team
Many beginners see stock trading as a DIY-thing. They believe they can make a fortune all by themselves, alone. This is, of course, not true.
Even when you’re a pro and doing this full-time, if you’re looking to build a sustainable portfolio, you must have the right professionals or experts by your side. And this is quite a challenge for those who aren’t necessarily a team player.
The successful traders usually have a team of reliable experts and consultants, helping them make the right trading decisions.
This isn’t simple, given traders and market experts, who are much more technically proficient, have distinct approaches. While the former one is more goal-oriented, the latter is more market-centric. Their opinions often clash.
Knowing how to work in a team is quite important here to have a well-devised and streamlined trading strategy.
3. The Never-Ending Learning Curve
Warren Buffet still reads for hours every day. He isn’t alone! Take the example of top investors or traders and you will find them spending time in active learning on a daily basis.
Meaning, even when you have reached the pinnacle of your game, learning never stops. It’s an ongoing process. You must continuously consume learning materials, opt for advanced stock market trading courses, read books, go for more stock trading courses, and read some more books.
Of course, learning isn’t easy.
It’s quite a challenge to dedicate a few hours of your every day in this process. But this is what the profitable traders usually do. And this is perhaps one of the biggest secrets behind their success and wealth.
These are three rather unexpected challenges profitable stock traders face. If you are to walk on the same path, you’ll likely have to face and embrace these same challenges as well.
Bottom line: don’t buy into the narratives of the mainstream media. Being a successful stock trader isn’t as glamorous as so many people think.