Today, trading has become a highly lucrative opportunity to earn quick money and financial freedom, which can be why online brokerage platforms, such as Robinhood, report a surge in the number of individual day traders. Robinhood’s 2021 second-quarter report suggests that the number of monthly active users has increased by 109% since the second quarter of 2020.
At first glance, trading looks like a simple transaction game that promises significant gains in a short time. Still, Zack Morris, a self-made millionaire and successful trader with years of experience, argues that being a trader is much more than just buying and selling. For Morris, trading is a way of life where only the most persistent succeed.
“Trading looks like a simple game — buy low, sell high,” he says. “You can earn some money by trading sporadically, but more often than not, that’s the way to lose money.” He adds, those who want to succeed in the trading world and make names for themselves need to “live and breathe trading to really succeed.”
Zack Morris suggests that trading may prove dangerous for rookies because they make mistakes that can sometimes cost too much. “Even though trading offers a lot of earning potential, it is riddled with traps and pitfalls that rookies can’t see,” he says.
“I believed that I could make enough money to quit my job and do trading for a living,” Morris continues. “Although I started with a very good start and made $60,000, it has quickly turned into a disaster as I have lost all of it and ended up with only $800 to my name.”
Still, he believes that rookie traders don’t need to worry as much about losing all of their savings if they do three things: do the research, learn how the game works, and follow the rules. “Just like any world, fictional or non-fictional, the world of trading also adheres to a certain set of rules and regulations which are directly tied to one’s success,” he says. “I learned from my mistakes, made new rules for myself and turned the $800 into $30,000 again, and after that into my first million.”
Zack Morris explains that the “rules for success” are the personal rules that every trader should make for themselves, and here are the rules Morris believes that “every trader needs to follow if they want to succeed.”
Trade Only What You Can Lose
Zack Morris explains that trading always carries some risk and urges rookie traders to make their trades only with the money they can afford to lose. “Trading can be risky, so you need to play it smart,” he says. “Never invest money set aside for daily living expenses, critical debts, or emergency funds. If you do it that way, if you lose, you will lose it all, and you won’t be able to afford anything, let alone continue trading.”
Don’t Let Failure Go to Your Heart and Success to Your Head
As trading carries a degree of risk, failure is an inevitable part of it. Still, Zack Morris explains that failures are just stepping stones towards success.
“When I began trading, my first trade was a complete bust. After doing some research and modifying my strategy, I scored $12,000 on a $6,000 investment,” he says. “I admit, I got carried away by that win, and not long after, I ended up with $800 in my account. After that, I took a more cautious approach, and here I am today, a self-made millionaire. So, once again, if you want to succeed in trading, play it smart and don’t let failure go to your heart nor success to your head.”