Millionaire TradersQ: When they lost money, what would you say them?
A: Well, we would tell them that if a person is intelligent, they
could actually learn more when they lose than when they make
money. Also, we were worried that if they became successful too
young, they would never want to get a real job. If they made in a day
in the Forex market what they can at a regular job in 15 days, then
they may not be motivated. We wanted to instill a very powerful
work ethic and not instill the notion that money is easy to come
by. So I would talk to my children and say that you can take your
savings and really put them to work by putting them in trading.
But first and foremost you really have to become a useful member
of society. You have to look at trading as this other resource that
puts your savings to work.
Q: In terms of your own trading, what is the number one lesson
that you’ve learned from your mistakes?
A: Well, the very first thing I have learned is that the only way
to make money is to actually open a position. Once you open that
position, the second big rule is that you need to have enough funds
behind your position such that if it drops one or two cents, you are
not completely out of the position. Although I am very successful,
my strategy does require a large amount of capital. In addition, the
most important thing that I want to impart on new traders is to tell
them not to expect to achieve riches overnight, especially with a
very small amount of money. You want to make sure that you have
a consistently profitable strategy, not one that makes money one
day but does not work weeks or even months down the road. You
have to trade in a balanced way such that not only do you have a
good strategy, but also that you control your risk. You never want it
to turn into something that you beat yourself up about. Even if you
make money, it’s only going to hurt you in the long run because
you are so unsettled about the excessive risk that you are taking.
The purpose of trading is to add to your quality of life, not take
away from it. You want to makes sure that you are actually doing