A Common Trading Mistake That Could Ruin You

For some, investing is a necessary evil. They don't want to be bothered with it, and often hire professionals to handle their investment decisions. Others love the idea of making trades, and if they encounter a winning streak, may seriously consider the idea of quitting their jobs and becoming full-time traders.

Trading is one of those enticing, glamorous careers. The idea of being self-employed, taking vacations whenever you want, earning tons of money -- it all sounds like a dream come true.

It is a dream, but the truth is unpleasant. The average income for people who try to become full-time traders in an attempt to support themselves and their families is less than zero. In other words, it's not that they don't make enough money to survive as a trader; it's that they don't make any money. The vast majority are forced to give up the dream and go back to the real world.

There are many reasons why most cannot succeed as traders. The obvious is that not everyone has the required skills. We don't see people trying to practice law or medicine without the proper education, training and licenses, yet many individual investors believe it cannot be difficult to trade for a living.

Hopeful traders put together a small pile of cash, make some trades and are disappointed when they realize how difficult it is. Making money is tough enough, but when trading expenses are added to the picture, the burden is too great and profits are not achievable.

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