Why do people ask me if I’ve stopped trading?

analyst75 · 2017-10-21T23:56:30+00:00

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: ADVFN Books: Insights into the Mindset of Super Traders by Azeez Mustapha Source: www.tallinex.com

Thread starter analyst75
Start date Oct 22, 2017

analyst75

JF-Expert Member

Oct 22, 2017

Beberu

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