What do people who are into likes and comments have in common with consistently profitable traders?
Quite a few, apparently. But first, what exactly are “influencers”?
Merriam Webster defines an influencer as “a person who is able to generate interest in something (such as a consumer product) by posting about it on social media.”
These are usually celebrities, industry thought leaders, AND content creators who are familiar enough with their craft that they can sell a product or an idea to their audience.
And while there are bad players who have given the profession a bad rap, there are a lot more who produce high-quality content and make efforts to engage their communities to get a more consistent income.
They are the ones, I believe, that are not too different from consistently profitable traders.
Let’s look at four ways these influencers may be like forex traders:
They know their fundamentals
You can’t make money from something you don’t know about.
An influencer can’t build an audience if they don’t trust him/her to give accurate information about their craft, or if they don’t live the lifestyle that they’re selling.
Can you imagine buying a makeup palette from someone who can’t tell a foundation brush from a toothbrush? I hope not.Similarly, traders can’t begin to build a trading system unless they understand the basics of technical, fundamental, and sentiment analyses.
It’s only after they’ve (successfully) tried out different trading plays, chart patterns, and technical indicators that traders can start becoming consistently profitable.
They need to be flexible
Successful influencers have to work around quick and unpredictable changes in social media algorithms, their specific crafts, and their audience’s preferences.
They have to be ready to mix up their content, use other social media platforms and engagement methods, or even explore other related niches if they want to stay relevant in their communities.
Meanwhile, traders have to be ready to cut their losses and flip their biases if their initial trade idea is killed by a catalyst. They also constantly assess the trading environment and then use the appropriate indicators and trading plays when needed.
People see the “instant” success and not the hard work
Some people see fancy vacations on social media and are immediately driven to start their own “brand” thinking that they will be able to afford the lifestyle if they just post pretty pictures.
What they don’t see is the hard work that it takes to be a successful influencer.
They underestimate the time and effort that it takes to (regularly!) produce high-quality content and then engage with both the fans AND haters.They don’t know that they have to do this until they build a big-enough audience to hopefully attract cash-paying brands. Lastly, they have to keep fine-tuning this process until they can do it full time.
Sound familiar? That’s because forex traders go through the same process.
People who only see the lambos don’t consider that it takes time discipline to build good trading habits and master the different playbooks.
They also forget that it takes patience and persistence to keep fine-tuning trading systems every day until they become consistently profitable.
They treat their craft like a business
Sharing high-quality (and usually free) content doesn’t mean you can’t earn money. Getting freebies can improve your brand but cash is still king and it’s better if you can get it consistently.
This is why influencers invest in assets like good cameras, lighting, and editing software and they don’t scrimp on advertising and content budget.
Those who want a long-term career also pay attention to a wide range of metrics to track their costs and are always on the lookout for new opportunities like merchandising or pivoting to a related niche.
Meanwhile, newbie forex traders put in money they can afford to lose so they can get a feel of the basics of forex trading. They also track factors like spread, broker fees, and other metrics to see what works and what doesn’t.Once they’re consistently profitable and ready to trade full time, some step up their trading game by investing in paid subscriptions, charting software, monitors, and other assets that can improve their performance.
At the end of the day, both influencers and traders know that they can’t do what they love full time if they can’t make a living out of it.
They have great personality
I’m kidding. Influencers HAVE to be personable.
Traders just have to be consistently profitable and it shows.
That’s it for me today! How about you? Do you know anyone who’s a trader AND an influencer?