In trading there are 2 kinds of people:
1. Those that think trading will solve all their financial problems.
2. Those that know trading isn't the “holy grail” of financial freedom.
Today I saw a comment on my YouTube that made me think hard…
Myth: “Traders only need 1 income”
There's a couple of issues with this thinking, and I couldn't let it fly without a quick comment.
Alright let's have a look…
Part 1: “all these traders needing a side hustle is a worrying sign”
The market works in cycles… and whether you like it or not, no one can predict it.
Yes, even with tons of experience and a deep understanding of “smart money concepts” lol
We, as traders, just execute a trading plan.
Granted, we've put tons of hours into making sure that our plan works long-term with a good equity curve.
But you can't give the market a signed contract with your requested salary on it.
So if you wait for paycheck from the market, which you can't control, to pay your bills…
…you're making it very risky.
Not impossible to do it but…
You either have to live waayyy below your means relying on 1 income.
So if you make $10k/mo. on a good month, you'd aim to live on $2k/mo. so you can go through drawdowns & slow months effortlessly.
Or you can build other income streams to add more predictability.
But the other big question is…
If trading takes 1-2hrs of your day (like for me) as a swing trader… what the heck do you do for the other 12 awake hrs?
“Ah I'll just take it easy & relax on the beach”
Studies show this becomes quickly depressing & meaningless.
You have no goal, purpose, or connections with people.
So you might as well get to work on other stuff you love, grow your comfort zone, or build a wealth empire.
Part 2: “in a world with unlimited leverage”
All I gotta say is…
If you think trading will make you rich because of unlimited leverage, you're in for a shaky ride.
While it's true that unregulated brokers offer 500:1 or more leverage…
Regulated brokers (where your money is protected) are being forced to cut down with new regulations.
If you could make good money on 500:1 a few years back, you're now stuck on 30:1 or possibly less!
Your potential gains decreased by a huge 94%.
And trust me; they will continue to do so.
But honestly, that's just the tip of the iceberg…
Because most traders don't understand that high leverage allows you to make more money, BUT also lose a lot more.
A trader with 500:1 leverage can easily blow his account on 1 trade if he's aggressive on position sizing.
It's cool to show off your big trades on social media and all.
But beyond the camera, these “trading influencers” have countless blown-up accounts.
Hope you got my point by now.
But what do you think?
Desire To Trade's Videos Of The Week:
- The Reality of Scalping | Is it profitable or not?: there's so much b.s. online about scalping, so I hope you'll appreciate this realistic overview from a full-time trader managing over $6M.
- Her Consistently Profitable Trading Strategy – Sunny J. Harris: uncovering the strategy of a female full-time day trader who honestly trades like a legend.
- “From No Experience to Full-Time Forex Trader” – Lee Sandford: Interview with a full-time trader who went from zero experience to becoming profitable while playing soccer professionally.
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Who is Etienne Crete? I help people quit their 9-5 jobs to scale up their trading & live on their terms.
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~ Etienne Crete
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