In trading, state of mind and how a person looks at trading is very important.
A lot of people who work full-time jobs are constantly bombarded with financial news and trading tips. They open trading accounts and begin to trade. Soon after getting into it, they start to think of trading as a possible road to financial freedom. If only they could replace their income with trading income, then they would be free of the 9-5 grind. Very tempting!!!
In the next step they try to figure out how much they would need to make a week or a month to match their currently salary weekly or monthly income. I've probably done this a thousand times - but every time I need to bring myself back to the reality that: Trading for a living, although very possible, does NOT provide a steady stream of income. You can NOT expect to extract monthly or weekly payments from the market, especially when you start trading.
Trading is unstable! There will be times that you will not see any setups and these are the times when you should stay on the side lines and not trade. There will be no income at these times!
There will also be times when you will have losses. There will be no income at these times either! Finally, you catch a high-probability setup, get in, and it makes you money. At this point a good trader has made enough money to cover the previous losses and some for profits.
So if you've just started trading and feel like you want to replace your salary income with trading income...... STOP!
This is the wrong mind set and it will put unrealistic pressures on your trading, leading to bad trades. If you'd like to make a living as a trader, make sure you have enough money to live off of for at least a year before quitting your job.
Hope this sheds more light on the topic... happy trading!
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