When most people start trading, they usually get blinded by dollar signs.
80% gains! 210% gains! Keep 'em coming!
But the reality of trading soon sets in, and the losses inevitably come — because no strategy is perfect.
Sometimes the market will turn, and those same trades that were cranking out double and triple-digit winners start cranking out double and triple-digit losers.
When this happens, inevitably, some traders will quit — either because they've blown up an account or because they've become disillusioned with trading.
"You can't time the market" is a common saying for this crowd.
Sometimes they leave the markets altogether… other times, they get into passive investing… diversifying across the entire market.
Whatever the case may be, giving up on trading is not the answer.
To see why, let's look at another common thing people do: trying to get in shape.
Despite all the fad diets, radical workout plans, and downright dangerous advice you can find online, there is a core truth to getting in shape — consistency is more powerful than intensity.
Think about it: You can work out until your arms feel like they're going to fall off, and you can have the strictest diet. But how long can you maintain that?
Unless you're being paid to do it, like a professional athlete, odds are not very long. Our willpower — not to mention time — is a limited resource, and if you go that hard for that long, you'll eventually find both get depleted quickly.
On the flip side, think about moderation.
Maybe you say no to dessert during the week… maybe you work out moderately 3 times a week… maybe you start eating more meat and veggies and less cake and soda.
How long do you think you can keep that up?
If you do it right, the answer is forever. And if you keep that up forever, how long do you think it will be before you start noticing changes on the scale or in the mirror?
It's the same with trading. Big, fast, flashy gains often get the attention of traders — especially those just getting started.
But the real magic is in smaller, more sustainable trading.
That's why our friend Nate Tucci often talks about dividend investing. Or why our friend Jack Carter is all about selling options.
Or why Jeffry Turnmire's most successful strategy — with a perfect 100% win rate — averages a 7.35% return per trade.
According to data from Dalbar, a financial market research firm, the average investor significantly under-performs the market due to poor investment behavior — especially chasing high returns and abandoning investments during downturns.
This highlights the importance of consistency and a more steady, moderate approach.
Small single-digit gains may not get your heart racing, but remember, consistency is the name of the game — just like when you're working out and trying to get the number on the scale to move in the right direction.
In trading, the goal is to build wealth gradually, not overnight. Sure it’s wise to dedicate a small portion of any trading account to solid strategies with a history of big returns. But if the returns truly are so big, you don’t need to dedicate an entire account to that kind of strategy.
You’d be better off dedicating the bulk of your trading funds to more sustainable, long term strategies that focus on long-term success and minimize the risk of massive losses that can wipe out an account.
Whether it's trading or working out, the key to success is consistency.
Moderate, steady efforts over time will yield better results than intense but short-lived action.
So, keep at it, stay consistent, and with the right strategies you could watch your wealth grow.
— The Prosperity Pub Team
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