Disliked{quote} You're right. Look at all the students that have committed suicide due to the evergrowing college fee debt. We only notice the cases that are linked to the field we are working in but in reality, all financial, educational, political etc. institutions are coming apart.Ignored
That is not true. Suicide rates among students are the lowest on financial reasons if you take out the bullying many are victims off.
On other business sectors I kind of agree, the first example that comes in my mind is a restaurant owner that invested all his savings and go bankrupt, the emotional distress is very high.
But there is a noticeable difference however, in much traditional business such as a restaurant, a retail store, a retail website, a import/export company, a construction company, a service related company, etc..., a « failure » is easy to call it such, while how would you call it a failure in trading ?
Certainly not 1 blown up account (2/3/5/10?) or perhaps then a year trading without haven’t been able to bring home money ? Or 2 years ? 5 years ? 10 years ? Or a maximum capital ?
Many peoples are trading since many years, devoted much time, neglected many things for trading, lost tons of money and still continuing even though they aren’t making money, why aren’t they calling that failure ?
Trading is different than most business. Business is simple, it is a financial risk to get in the place then it is offer and demand, if not enough demand then you haven’t the good business because the demand is meaningless and you move on.
Trading on on the other hand is never over because short money is way to easy to make (1-12 months), so most peoples never stop because the problem is never that they weren’t successful, actually all traders are successful in a relative short time, again, making money from trading is VERY easy, keeping it is the hard part. They are just hooked and the more they invested the less they want to get away, same as the fallacy of a gambler in front of a slot machine.
Let’s take for example a import/export company, it is quite easy to manage as long as you understood the cost and minimum profit margin required, as long as you have demands and are not too dumb, no need to go school for it.
Trading is more like a surgeon that needs years of studying, but a Surgeon at least at the end of his scholarship get a degree and can start to work for a huge salary. Ever wondered why there is no school or degree to be a successful trader ? Because it doesn’t matter how good you are nor the knowledge you have, it is a zero sum game.
Only the smartest of the smartest make a living from it and if more smart peoples are coming into the game the market will just self balance itself making it only profitable for the smartest of the smartest of the smartest, and so on. It is not only about being smart and good but being the best, the Alpha. Which is not the case at all of most businesses where the idea/timing/risk/luck/innovation counts and rewards, which allows an unskilled/unexperienced business man to become a millionaire which is absolutely impossible in trading.
That is why Trading is one of the profession with the highest suicide rate.
LDFX Trading Ltd