One of the most interesting, and perplexing, dynamics of trading is the sheer number of traders who continually lose money trading, but who, for some inexplicable reason, continue to trade. One possible explanation is that these “traders” are compelled to trade, meaning they are addicted to the gambling element inherent in trading.
Another reason might be that they do not have the personality or the skill set to trade, but they think they do, so they keep on participating in their delusion. Still a third and, perhaps, the one that explains most traders who lose money continually is that they don’t take the time to learn the craft, and, even worse, they don’t acquire the tools necessary to gain the edge needed to be successful. Those tools include educational elements, certainly, but more than that, in this, the age of software-driven trading, a trader needs quality trading software to “stay with the pack” and be successful.
Trading software comes in many forms, offering this bell or that whistle. Although many successful traders fully utilize the split screens, live news feeds, back testing, and other benefit-rich features, those who continually lose money don’t need these features in their trading software. No, what these traders need is bona-fide trading software that works seamlessly, efficiently, and provides information that actually gives a “heads up” on trend direction.
In the trading world, as in life, one gets what he or she pays for; quality comes with a price. This reality might still be one more reason traders who are losing money continue to lose money. It is an old maxim in business that states, “You have to spend money to make money.” Simply, if you want to make money in the markets, be prepared to expend money establishing yourself as a serious trader. How much depends on your capital account, and how serious you are about becoming a trader, but one thing is certain, if your capital account is decreasing from losses, then you need to either quit, or do something to stop the hemorrhaging.
When I first began trading, I found myself in this exact position. I was losing money, but I didn’t want to quit, so I began a long search for tools that would turn my trading around. I found an abundance of educational material that helped me tremendously, and I found a mentor that opened my eyes, but I knew I needed more. I knew I needed trading software that would help me be a better trader. So, I searched out, tried out, and let go of every inexpensive software package I could find. Either they were too complex, or they simply didn’t work for me.
Then I came across VantagePoint Intermarket Analysis software. I loved it – the intermarket analysis premise, the use of Neural Networks, and the ease of use – but the price seemed so high. Yet, it was the only software package available to an individual trader that could actually forecast trends with up to 86% accuracy and was simple to actually apply in live market conditions to trade profitably. So, I took the leap, spent the money, and I have been using the software for almost three years now and have achieved the financial freedom that I so badly wanted in life.
If you are like I was, a trader losing money, consider acquiring software that will help you gain the edge you need to turn your losses into winners. One criterion to use in evaluating how much you can spend on acquiring that software is how much money you are losing. Think about it as I finally came to think about it – If you were out of work, and a General Contractor tells you he will hire you as a carpenter, but you need your own tools, would you go out and spend the money for the tools so you could make money working? If you answer “yes” understand that carpenters don’t buy cheap tools because cheap tools risk injury, and an injury to a carpenter is like money lost to a trader – it can put you out of work.
As I said earlier, in today’s trading world, software is an important tool for finding success. So, in evaluating how much you can spend on software, one thing to look at is how much you have been willing to lose in bad trades. Compare that dollar amount to how much a quality piece of software costs. If you are losing more money than the cost of the software you want, the software that will help you turn the odds to your favor, then suggest to yourself, “Perhaps I should give this software a try.” And when you have this discussion with yourself, keep in mind that 1) you are currently losing money and 2) in business, it takes spending money to make money. The issue is, and it will forever be so in business, one needs to spend money on the tools that will actually make you money. I can only speak for me in this, but I am still trading and I still use VantagePoint. I wonder if there is a connection.
