The question above is common whenever I come across people who used to be
traders. They started trading because they thought it was easy and because they
thought they’d strike it rich. Nevertheless, they discovered that trading isn’t
easy and after they dashed their heads into the rock many times, they gave up.
Whenever one of them comes across me, they ask: “Are you still trading?”
It’s simple. If they can’t do trading successfully, they feel no one else
can do it, or very few people can do it. They gave up and they expected me to
give us. Surprisingly, I have not given up. In fact, I got what works for me
and I like it. It’s a personal strategy: Manual + discretionary.
The World Of Trading Is
Full Of Hypocrisy
I’m sick of those who talk about their profits alone, but who hide their losses.
When NZD pairs moved maniacally on October 19, I saw how many people posted the
profits they made. But none of them would ever post loses they made. Very few
traders would post their losses. The world of trading is full of hypocrisy.
When someone makes 300 USD or let’s say, 300 pips, they post it on
forums, WhatsApps group, Facebook, etc. When the person makes a loss, they
remain silent about it. That’s why some rookies would come and think trading is
easy – just because everyone is talking about profits.
FACT: Trading isn’t easy, though the marketer would want you to believe otherwise.
Success is, nonetheless possible.
Liberate Yourself With
Trading Realities
You will never find a perfect trading system or signals service.
You can’t avoid losses. But you’ll be OK as long as your average losses
are smaller than your average profits.
I recently showed one of my trainees my trading results. I placed a
trade, I lost it (-1%).
I placed another trade, I lost it (-1%).
I placed another trade and I lost it (-1%).
I placed another trader and I lost it (-1%).
4 losses in a row (-4%).
I placed the 5th trade and I won it (+6.9%). I let my profit
run.
You see, I made sure that I limited my losses and I let my profits run.
I didn’t throw away my strategy because of a transient losing streak,
since I know it’s a statistical edge.
There are many bogus high probability strategies (manual, automated or
semi-automated) that can win 99% of trades in a row. But one big loss would
wipe away everything.
Think about the rest. It’s up to you.
I’d end this article
with the quotes below. Please read what these highly experienced master
traders have to say:
“It is the fear which
tends to be the biggest challenge….It is fear which stops us from taking a
solid setup in the markets because we have been on a losing streak, only to see
it work out well and the opportunity missed. It is fear which causes us to not follow
the trading plan and make irrational changes because that other trade failed to
work. It is fear which causes us to get out of a trade far too early with only
a small profit because we are scared to hold on in case it became another
loser, and it is fear which makes us search over and over again for the perfect
strategy which does not exist, simply because we think there is always
something out there we are missing out on or don’t know about. Fear, my
friends, is the biggest hurdle any retail trader has to face and will hold you
back more than anything else.” – Sam Evans (Source:
Tradingacademy.com)
“But you know what I
learned? I learned that people don't want to change. People don't want to be
told that they have to change. People resent being corrected. Do you know
anyone like that? It's understandable, right? It's not easy to be corrected.
Yet experience shows that life as a trader is a life of correction. So whereas
you may know people that don't want to be corrected, the fact is, if you are
going to trade successfully you are going to have to learn how to receive
correction. It's really the hardest part, what I'm giving you right now. It's
the hardest part. Everyone wants to think that they are lovable just the way
they are, and maybe they are lovable just the way they are but that's not going
to necessarily help the real deep things that hide in your soul that will
destroy true success. We can't like ourselves too much. Do you understand what
I am saying? You know what to do, now do it! That’s a correction, by the way.” - Joe Ross (Source:
Tradingeducators.com)
“In trading we talk
about the need for a variety of emotional strengths. We talk about the need to
be calm, confident, and disciplined but we very rarely talk about the need for
courage and the majority of traders fail because they do not have the courage
to succeed. It is often bloody hard to hang onto positions that have very large
open profits. Your brain plays all sorts of tricks on you and you begin to
rationalise the foolish action you are about the take. I am quite certain that
Ronald Wayne who sold his original share in Apple for $800 (now worth about
$75B) rationalises that decision. Rationalisation is a wonderful human skill –
it insulates us from the harsh knowledge of our own failings and traders are
experts both making foolish decisions and hiding from them.” – Chris Tate (Source:
Tradinggame.com.au)
Traders’ Mindset: Traders' Mindset
Source: www.tallinex.com
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