Good morning, tradersâŚ
Jeff here.
When youâre trying to achieve a goal (like becoming a world-class options trader), youâll only see the positives.
On your way up, it may seem like professional trading has zero downsides. You might think all your problems will be solved if you can make money trading.
But this is a fallacy. While Iâm thrilled to be a professional trader, I wonât sugarcoat it ⌠itâs not easy.
I dreamed of being a trader my entire life. I went from a state school to the highest reaches of Wall Street in a few short years. But when I started working at hedge funds, I realized how difficult trading truly isâŚ
From keeping track of world news to analyzing charts and fighting your emotions â trading poses many challenges.
This is why 90% of traders fail. If it was a cakewalk, everyone would do itâŚ
It isnât until youâre actually doing the job you were dreaming of that youâll begin to grasp the little-known, negative aspects of your chosen career.
If you want to last a lifetime in the stock market ⌠the first step is understanding the pros and cons of professional tradingâŚ
The Pros of Trading
First, letâs talk about a few of the many benefits of being a professional traderâŚ
Personal Freedom
Few things are more important to me than my personal freedom, which is why I love being a trader.
It gives me the ability to do whatever I want whenever I want.
If I donât feel like trading one day, I donât have a boss pressuring me to meet my quota.
If I wanna hang out with my kids instead of making trades, no one is going to discipline me.
Additionally, I can trade from anywhere in the world.
My good friend and colleague, Tim Sykes, is famous for trading from his laptop on a crystal-clear beach or in front of a gorgeous foreign vistaâŚ
But he doesnât do this to look cool â he does it to prove a valuable point.
Sykes has proven that traders can make money from nearly anywhere in the world. All you need is a solid internet connection and a laptop.
Realizing this helped me to turn my back on Wall Street and start trading my own capital, which was one of the best decisions I ever made.
No boss, no schedule, no one to answer to. Just me and my Burn Notices.
As traders, we have complete personal freedom. And thatâs priceless.
Flexible Hours
Most jobs require 40-80 hours per week of focused work.
But trading is different. There isnât a direct relationship between time and profit. You donât have to trade eight hours a day to have success in the stock market.
Part-time trading works well for many.
The flexible hours trading provides can make it a potentially excellent side hustle for anyone with a day job.
Additionally, trading can be a great way for stay-at-home parents to learn a profitable skill and make some extra money.
I canât think of many side hustles that allow you to potentially make thousands of dollars from your phone at your own pace.
Unlimited Profit Potential
Most careers have a ceiling for how much money you can make, or how high you can climb the corporate ladderâŚ
But thereâs no financial ceiling in the stock market. Theoretically, traders have unlimited profit potential.
As long as you work hard and can stomach the risk, the skyâs the limit for how much success you can have.
You donât have to wait for your boss to give you a promotion â your earnings potential is entirely in your hands.
For a perfect example of this, back to Tim SykesâŚ
When Sykes was first starting with $12,415 of Bar Mitzvah money, he never thought heâd become a multi-millionaire.
But by building a reliable trading system and learning at his speed, Sykes was able to make $2 million before graduating college.
(If youâd like to hear all about Sykesâ trading journey from the man himself, click here.)
Today, Sykes has profited over $7.7 million as a professional trader. Heâs an excellent example of how high you can fly if you work your butt off.
WARNING: These results arenât typical for the average person because most won’t put in the work required.
That said, trading isnât all puppy dogs and candy canesâŚ
The Cons of Trading
Like anything worth pursuing, trading has some downsides. Letâs break a few of them downâŚ
No Guaranteed Income
Unlike a job where you receive a regular paycheck, trading provides no guarantee of income ⌠ever.
If youâre gonna pursue a career as a trader, you need to be prepared to go long stretches without making money.
I hope that doesnât happen to you, but you must be aware of (and comfortable with) that possibility.
If you arenât willing to accept the financial realities of rough patches in your trading, you wonât bring the right mindset to the markets.
90% of Traders Lose Money
Even more difficult than accepting that you might not make money is coming to grips with losing money in the markets.
Most jobs just pay you â they donât make you vulnerable to the risk of losing money.
But this is why trading isnât a normal job ⌠If youâre gonna be a trader, you need to be able to stomach small losses.
If you cut these losses quickly, theyâll be small dings that youâll easily recover from.
But the fact remains that 90% of traders are unprofitable.
They donât build a disciplined trading system and blow their accounts up making reckless trades.
Bottom Line: You have to learn how to take the small losses â and how to keep your losses small.
Youâre on Your Own
Trading is a solitary pursuit. Most traders do everything on their own. They lack a support system.
This stands in stark contrast to most traditional jobs, where you work at an office filled with colleagues and teammates.
Now, for some personalities, the solo nature of trading can be perfect.
But most people â regardless of their field â need some trusted confidants to bounce ideas off of, confide in, and commiserate with during trying times.
Thatâs exactly why I started the Burn Notice Alliance â to provide support and help guide you toward success.
You donât have to go it alone. Seek guidance from mentors and advice from your peers.
Letâs learn how to crush the markets together.
Happy trading,
Jeff Zananiri
P.S. Wall Streetâs errors are your opportunity. Hedge funds are mispricing trades daily, creating âartificially cheapâ opportunities.
Spot these glitches and you could see returns of 51%, 107%, and even 630% within 24 hours!*
*Past performance does not indicate future results.
