Anyone who starts down the road to becoming a trader eventually comes across the statistic that 90 per cent of traders do not make money. This statistic deems that over time 80 per cent lose, 10 per cent break even and 10 per cent make money consistently.
Over time does NOT mean a few weeks or even months, but years. All too often people who start to trade are no longer trading after two or three years, although they may have been profitable for a short period in that time.
An interesting point about the statistic is that it is not based on geographical region, age, gender or intelligence. Everyone aspires to be in the 10 per cent who consistently make money, but FEW are willing to put in the time and effort to achieving that!
When Duane Cunningham gives a presentation he asks those present if they want him to teach them what the 10 per cent of traders know, or the other 90 per cent, and every time they say the 10 per cent.
To me, the answer to understanding the 10 per cent is simple – all you need to do is look at all the books and courses available and pretty much don’t do most of it!!
To be successful you need to do what the majority of traders don’t!
This may seem like a simplistic view, after all, you don’t know what you don’t know, so how does an inexperienced person work out from the overwhelming load of information out there what they should be doing?
Basically, to become a successful Cheetah Trader the equation is really quite simple:
Knowledge + Experience + Hard work = Success
No consistently profitable full-time trader has ever told me they got there through luck. ALL followed these three simple steps (the basic rules, if you will):
Step 1: They acquired the knowledge
Step 2: Once they had acquired the knowledge they developed their experience
Step 3: Those two steps are of no use unless the trader is willing to put in the hard work
Another statistic is that learning to trade is a two-to-five-year experience.
There is NO substitute for hard work and there are no short cuts to becoming a professional and competent Cheetah Trader.