To be blunt, if you are serious about trading you are going to go on a personal battle that takes you to very dark places. Yes, that’s right. Don’t believe what you read on social media about easy profits and high percentage win rate strategies, they don’t work, but you are free to go find out for yourself.
I wanted to write this because I am someone who fell into the trap that made me think this activity is easy but trading is difficult. The market can only go up, down or sideways. How hard can it be was my thinking! I didn’t have any idea of how my emotions would hijack me, even after trying hard at disciplining myself for them not to.
While the allure of financial freedom and independence may have drawn you into this world of trading, this path to success is fraught with obstacles and setbacks that require resilience, discipline, and a willingness to learn.
Trading is not a get-rich-quick scheme. Contrary to the glamorous portrayal, successful trading requires dedication, hard work, and a deep understanding of the markets. It's not about making a few lucky bets and cashing out; it's about consistently making informed decisions based on thorough analysis and risk management.
Dealing with the stress of losses, the temptation to chase profits, and the fear of missing out are all part of the psychological battle that you will navigate on a daily basis. Your natural response to losses, if you are not prepared is to over trade to win them back. Then when the market is in your favour your greed will take control of you and watch your trade return to break even or worse, if your ego can’t accept that the gains are over. Can you even begin to imagine how difficult it is to train your mind to do the opposite of what your brain has instinctively told you to do.
Trading requires continuous learning and adaptation. I can’t stress how much learning is required and not just the technical side. The financial markets are dynamic and constantly evolving, influenced by a myriad of factors such as economic indicators, geopolitical events, and technological advancements. Staying informed and up-to-date with market trends and developments is essential. Are you prepared to dedicate time to research, studying market patterns, and honing your analytical skills?
The journey you are on is statistically going to result in you being a failure. This is no coin flip either, 90% of traders will fail because this activity is just so much more difficult than you can imagine. Majority of traders fail to achieve consistent profitability in the long run. This is not meant to discourage you but to emphasize the importance of being realistic about your expectations and committed to your trading journey.
Success in trading is not guaranteed, but with perseverance, resilience, and a willingness to learn from both successes and failures, it is attainable. Trading is not for the faint of heart. It requires a combination of skill, discipline, and mental fortitude to succeed.
The market is designed to take the money from the masses and give it to the 10% who are doing the opposite of what we are designed to do. In fact, that to be honest is what you need to do; the complete opposite of what everyone else is doing.
Clear trading!
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