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Not many people realize that top investors and traders believe that 90% of their success lies in psychology and money management and ONLY 10% strategy. They end up searching for the next best “winning” strategy, never realizing that their subconscious beliefs, values, past conditioning, and expectations are what truly govern how they trade. Ultimately, they make some money, but are never as successful as they can be – some make tragic losses in the market and swear off investing forever. Professional trader Kathlyn Toh has coached more than 1,000 traders in the past few years. and wants to guide beginners on their investing journey. We caught up with her recently and asked her these questions on how you can avoid these costly mistakes to save them time and money. Question: So we know 90-95% people fail in trading and only 5-10% succeed. But what is the root cause? Many courses and marketing messages out there do not provide a complete picture about trading which may have misled people to think that trading is just about learning a strategy. So, many people keep looking for that perfect magical strategy. They want to learn everything from a guru and follow exactly the steps defined to enter a trade, then expect that trade has to be right. So, when a trade goes against them, they find it difficult to handle the disappointment and doubt the strategy and themselves and either give up trading altogether or look for the next bright shiny object. Q: So, how can this problem be overcome? Trading well requires discipline and the ability to manage our human natures e.g. greed. impatience, hope, fear, excitement, denial, and ego. To be in the top 5-10% of successful traders, one should start with having the right beliefs about trading and embrace the psychology of the top traders in the world. You can make money with a 3O% success rate strategy and you can also lose money with a 90% success rate strategy. Again, the strategy isn't the most important thing in trading. Q: You mentioned discipline, what are some of your “rules” for a trade? Never risk more than 2% of your capital in any single trade. This can be achieved through either having a stop loss or more advanced hedging. The higher the leverage of the instrument that you trade (e.g. forex. CFD, Options, Futures), the stricter your risk management should be. Q: Do you teach people to do this? I am passionate about trading so I provide a complete solution to make a successful investor/trader by modelling the top traders in the world. We teach strategy courses like fundamental Analysis and Growth Stocks Screening, Contracts for Difference (CFD), Options and Technical Analysis. But we don’t just teach strategy. We help people develop the right psychology and money management so they can experience consistent success. It’s funny but no one thinks they need the second part until they start making losses, everyone thinks they’re the exception. We have many games that simulate how participants make decision in various scenarios and extreme market conditions so they are more prepared on how to react in such conditions when they encounter them in real life. We also guide participants on how to create a personal trading plan from where they are to achieve their millions. We help them to gain clarity by reviewing their strategy, trading plan, and self-check mechanisms. Success Resources: http://www.srpl.net/
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