“I don’t have much money now, but one day I will have my picture in the newspaper”
-Warren Buffet-
Warren Buffet is a self-made billionaire; he is the third richest man in the world and has been for many years. In my opinion, this shows that trading is a great alternative to create great wealth. Of course, when you do it the right way.
In this article I’m going to reveal what, in my experience, is the main reason some people can’t make money in the market, and what the rich know that gives them the edge.
Markets move when they want to move
“Good profits are simply not incompatible with good behavior”
-Warren Buffet-
Yes, you can trade to become a millionaire, but you must have financial freedom before you even consider starting a career as a trader.
Having financial freedom means that you have a reserve of money that will allow you to pay your bills no matter what. It also means that you don’t have any debt.
The main reason people lose money in the market is because they don’t trade with a clear head. They have bills to pay, and the money they use to pay those bills depends on the profits they make through their operations. This forces them to take excessive risks and trade at a bad time.
Let’s follow the example of the greatest investor of all time. Although Warren Buffet is a billionaire, he lives in the same house he bought for $31,500 in 1958. He drives the same car he bought ten years ago and his annual salary is $100,000.
This means that even if you lose billions, your lifestyle will not be in jeopardy. This gives you a clear mind for trading. And this mindset allows you to find opportunities that those traders who have their emotions tied to the market will never see.
The markets move when they want to move and it takes patience to make money in this business. Good earnings are not incompatible with good behavior. So as long as you have a system with positive expectation, in other words a system that makes more money than the money it loses, and you trade it consistently, you will be successful in this business.
One last tip…
If you want to become a full-time trader, you must first learn how to spend your money wisely. This will allow you to achieve financial freedom very quickly and give you a solid foundation to amass a great fortune.