When we start a new something new we typically have a new level of excited and because of that we want to share with others what it is we are doing. However, when it comes to trading you may only want share this venture with a select few people or maybe even nobody at all depending on your circle.
This comes from personal experience, as I made my learning curve much more stressful and painful because of the people I decided to tell I was learning how to trade.
What we need to remember is that when you are learning you are at a point where you know what you need to get results as you are learning everything required to get positive results. However, you are not yet at a point where you are getting the results. So, any outside voices or opinions can have negative effects on your thought process and psychology.
What I have noticed with people is that we are all performance driven, we don’t look at the theory but the actual result. So, while you can tell people you know how to trade and what is required in theory, unless you have results to back up them statements unfortunately people will not believe you as much and will have doubt that you know what you are talking about even though you do.
What we also need to remember when it comes to people who aren’t as familiar with trading as you and I, is that they don’t know what we know and so they are at the beginning like you once was where you didn’t know what you didn’t know. Trying to then convince someone that you then know what you are talking about with no actual results to add any weight to your statement is a waste of time (In my opinion) as they won’t care about the theory but will only want to see results.
What we then need to consider is that 90% of traders fail and so even if they know someone who has previous experience in trading there is 5% chance they are still successful now. So, odds are the person they are trying to compare your situation to has failed and so they are comparing your potential success to someone else’s failure, to then try and convince that person you are not the same with no results to prove them wrong is a hard experience.
One last point is that we focus on % return, whilst people who unfamiliar with trading or investing do not focus on % returns and do not understand why they are important. What they will be wanting to know is how much money you have made they will want a monetary figure. Its entirely up to you if you tell someone how much capital is in your account and how much money you make per year but for me unless it’s an investor or my accountant I like to keep that information private.
Learning to trade can be stressful at times and even trading itself even when you know how to trade can be stressful so when you then tell others you are giving them a voice and odds are that voice will not be optimistic but pessimistic.
When you then become stressed in the learning process or possibly enter a drawdown the last thing you will be wanting is negative voices and opinions of others in your head but if you don’t tell anyone in the first place the voices don’t exist.
So be careful and very selective of who you tell when you are learning to trade or even are trading successfully as depending on who that voice is in your life it can make situations much more stressful than what they need to be.
I told people who I considered family at the time that I wanted to learn how to trade and to cut a long story short I didn’t get the outcome or support I thought I would. When I was then stressed or facing days where I did contemplate quitting the voices became much louder as you become effected by what others are thinking about you.
However, once you start achieving real positive results you don’t need to tell them your figure but at that point you can disregard anyone else’s opinion because you know what you are doing works and that is all that matters.
So, unless someone asks you directly I would not tell anyone you were involved in trading as it just makes everything easier and keep it private. I would only tell people who have a right to know such as parents if you live with them out of respect and partner, husband or wife where it may affect their lifestyle or personal finances. Anyone other than that I would keep it to yourself unless of course you really want to tell them but remember what I mentioned in this article.