)
Longevity and consistency—two words that hold the secret to trading, according to Michael Stark, Exness Financial Content Leader.
In the second episode of the Born to Trade podcast, Michael shares his thoughts on the evolving trading landscape, the importance of risk management, and why staying in the game matters more than short-term wins.
Experience, consistency, and the journey of a trader
With over a decade of trading experience, Michael Stark modestly describes himself as "moderately experienced." However, his journey reveals lessons that go far beyond the years. He explains that longevity, combined with consistency, is key.
)
)
)
It’s good to be trading for a long time, but if you’re constantly going from ups and downs instead of maintaining some reasonable level of consistency, you won’t get far.
For Michael, trading growth isn’t just about time in the market but sustaining a disciplined approach over that time.
Michael recalls the early years of his trading journey as challenging: "Trading is not for everybody. You need to persevere and have the right mindset."
He notes that the most consistent traders are those who can admit when they’re wrong and learn from their mistakes.
Trust, transparency, and the evolution of trading
Michael believes trust in the industry has undergone a crucial shift. "Back in 2013, there were many small brokers, many of them dubiously regulated. Now, the trend toward audited financial statements and reliable reviews means trust in brokers has improved significantly."
This transparency is not just a bonus—it’s a necessity. He adds that trading costs, swap rates, and widening spreads can dramatically affect trading longevity.
Transparent brokers like Exness, which provide consistent trading conditions and clear cost structures, play a significant role in a trader’s long-term journey.
The thrill of trading and real-time market reactions
So, what keeps Michael passionate about trading after 11 years? The unpredictability of the markets.
Trading allows you to see the effects of politics, diplomacy, and economic decisions in near real-time. Watching how markets react to these global events is thrilling, but you must keep the excitement in check. Trading should always be logical, not emotional.
Why risk management defines longevity
A significant part of trading longevity comes down to disciplined risk management. Michael stresses the need for setting hard limits: "I set a 10% maximum loss per month, 5% per week, and 2% per day. My profit limits are double these figures. Over time, the law of averages works in your favor."
According to Michael, one of the biggest mistakes traders make is ignoring risk management principles.
Many traders close profitable trades too early while letting losses run unchecked. It’s vital that the potential loss from any trade is never bigger than the potential profit.
Longevity beyond capital: Managing emotions and expectations
While capital can keep a trader in the markets, Michael believes mindset is what defines longevity. He explains that greed is a common downfall, as many traders have unrealistic expectations, hoping to double their balance in no time. Real consistency, he notes, comes from managing those expectations and exercising caution.
He shares a defining memory: "During the Swiss franc crisis, brokers went bankrupt, and traders lost life savings."
His cautious approach means stepping back to understand what is happening before making decisions. Sometimes, being too aggressive can cost you everything.
Choosing the right broker: Trust first, costs second
Michael emphasizes that while low trading fees matter, trust should always come first when choosing a broker. He explains that a low spread is meaningless if the broker is untrustworthy and unreliable with withdrawals. Trustworthiness, followed by execution quality and platform functionality, should be top priorities.
To ensure longevity, traders must monitor trading costs closely by using trading calculators to estimate spreads, pip values, and swap rates. Over time, these costs add up and directly affect profitability.
Final thoughts: Longevity is a journey, not a destination
Michael’s perspective on trading longevity is clear: it’s about staying consistent, managing risks, and learning continuously.
"Longevity doesn’t mean trading forever; it means trading smart. Set realistic expectations, choose the right broker, and always manage your risks."
Watch the second episode of the Born to Trade podcast with Michael Stark to catch the full conversation.
#FeatureByExness