Trading Tips

You're never too old to trade

Do you think that trading is the privilege of young people who are willing to take risks and after the age of 30 you have no chance in trading? Then you are mistaken. Trading is certainly not just for the young, reality shows that it is quite the opposite.

The truth is that at a professional level, trading is mostly done by younger people. In banks and financial institutions, trading departments are usually staffed by younger colleagues because it is a performance-oriented environment and experience is not as important. Indeed, such a highly competitive environment is more suited to younger traders who are able to handle the stress and older employees are at a higher risk of burnout.

On the other hand, however, the big frauds, and flash crashes and scandals in which the damage ran into tens or hundreds of millions of dollars, were caused precisely by younger and extremely ambitious traders, who were often unable to be sufficiently aware of the consequences of their actions.

It is also true that the most successful and wealthiest investors and traders are usually people who have already done something, have enough experience to use to their advantage, but at the same time have no need to show their success at any cost.

Trading only for the young? Not at all

The fact that the image of trading is shaped by young, cocky dudes on social media who are trying to convince everyone that at 20 the most important aspect of trading is an expensive car and gold chains is irrelevant. What is important is whether you are willing, even at an older age, to keep learning new things and working in an industry where earnings can be very uncertain and discipline and patience are the most important qualities for long-term success.

So what is the right answer to the question of when is the best time to start trading? Now. Trading is about freedom and independence. But it's not just about traders being independent of working hours and having financial freedom (or at least trying to). In fact, it's nowhere stated when you should start trading or at what age you should be most successful. In short, it doesn't matter what age you start trading, the important thing is that if you're interested, you should start now.

Younger traders have energy to spare, learning can be easier for them, and they are not burdened by past experiences and responsibilities that you may have at an older age. This can play to their advantage.

Being a senior trader is cool

But starting trading later in life can also have several benefits that can help you become a consistent trader. At an older age, you will likely have more funds available to use for investing or trading. In a small account, traders have a greater tendency to take risks in order to make meaningful profits, which leads to mistakes and subsequent losses.

Today, when it is possible to trade with virtually no funds of your own and take advantage of the offerings of modern prop trading firms, this may no longer be a problem, which is another advantage. Even at an older age, thanks to the offerings of firms such as FTMO, you don't have to worry about losing the money you have saved for retirement, for example, while trading.

Experience and a calm mind as the basis for success

At a mature age, you have more experience and can better evaluate the offers of potential scammers and self-proclaimed gurus who try to sell you various worthless courses. At the same time, you don't have the need to prove something to someone all the time, so you can focus more on the process than on high returns at any cost. You're not looking for the holy grail and quick profits, you don't want to gamble, you want to diversify your investment portfolio. Trading can thus be a great way to expand the portfolio of investment vehicles in which you already have your money invested.

Learning may not be as challenging as many think. While younger people may learn faster, the combination of extensive experience and more free time for learning can be the right recipe for successful trading. There's no rush; knowledge and insights gained from previous jobs can help you understand contexts that may not have occurred to you at a younger age.

Additionally, at an older age you are already able to gauge what will work for you, and you don't have to spend as much time trying to find the right approach that you will eventually use in trading. Young investors usually prefer intraday trading and scalping because they want to make a lot of money right away. At an older age, you are likely to be more comfortable with swing or position trading, which means fewer trades and less stress, which is of course another benefit in the long run.

Trading itself is a journey of continuous learning and improvement, so it basically doesn't matter if you start at a young age or a more advanced age. The basic prerequisites for successful trading are still the same, regardless of age, gender, education, etc. Without discipline, patience, or a willingness to learn new things, you won't have a chance at any age. Trade safe!

About FTMO

FTMO developed a 2-step Evaluation Process to find trading talents. Upon successful completion you can get an FTMO Account with a balance of up to $200,000. How does it work?.