After 5 years of self-educating myself in the art of trading while undergoing brutal consistent losses, these are the truths that set me on the path of surprising consistency after internalizing them.....I hope it will for you guys and give more inspiration to the already consistent ones.
Shocking Truths no one talks about in trading:
1. You may have the best strategy, signal provider or learned everything about trading, but what counts is what happens to that knowledge 5 seconds before pressing the buy/sell button.
2. What is Mathematically optimal is Psychologically impossible.
If you have a strategy that gets wins of 25R but has like 12 losses in a row, DUMP IT.
Mathematically, you will make money at the end, Psychologically you will quit before you take trade 13.
3. You start winning in trading when you believe you can lose (Trading Paradox).
Consistently profitable traders have one thing in common: they place their next trade like it was already a loser.
4. Extremely good analysts are most often bad traders....you can be right about the direction but fail in the critically important aspect of Entry timing and still lose the trade.
5. IT IS THE SIMPLE THINGS THAT WORK!.
Most people will tell you to look for complex strategies that look for "Random walk algorithmic discrepancies that rhyme with Chaos theories....and all that blah..." But I have been on that path and I hate to break it to you that a guy/girl using only support and resistance and simple moving average crossovers with a verified and bactested edge and discipline will most likely be more profitable.
5. THE MORE OBVIOUS A TRADE IS THE GREATER THE CHANCES YOU LOSE IT.
Most people think that if a trade has soooo many confluences it is more likely to work....well that might be true to an extent after which it is a blatant fallacy. From historical data and my own personal LIVE trading results, the probability of a trade working out reduces DRASTICALLY when the number of confluences crosses 5.
I theorize that this happens because market makers will see all the orders placed at that point is soo much(cause everyone will see the opportunity with their different approaches) and take them all out.
6. No one can sell a money printer, cause it has no price.
If someone offers to sell you a robot or STRATEGY that triples your money every month, laugh and pass, if you don't and end up buying that....you deserved to be scammed.
Think about it the person can just take $100 and apply his/her magic to it and print out Elon Musk's networth in lower than 3 years using compounding......and he/she will sell you that for $2000?, you must be kidding me!.
7. Your consistency has nothing to do with your strategy but your mind.
I can bet you my life's earnings, that there is someone out there, using your exact entry and exit rules but is profitable and you are not.
A better strategy brings in more profit, but any random edge with the right mindset and risk management MUST be profitable.
8. Almost everything in life is a pyramid-scheme, & survival of the fittest and trading is not left out.
No matter how much we desire to the contrary, it is IMPERATIVE THAT TRADING HAS MORE LOSERS THAN WINNERS.
The winners in trading have to be relatively fewer cause they win a lot and hence they need soo many losers to give them that money.
There is no bank that hands at money to you when you win, your job as a trader is to outsmart some other fellow and TAKE his/her money and once you come to terms that every dollar lost by you trading, is a dollar gained by someone else in this zero-sum game, you will realize only YOU has got your own back.
9. You can NEVER completely eliminate emotions in trading but you can set rules that allow you trade only when you are at your optimal state, and gives you a day or two vacation when you are down.
10. Reading this article will definitely NOT HELP YOU, it is remembering it the moment before you place your next trade that will.
Pls LIKE and Subscribe, I want to know what you think about this article and which point you agree with the most or disagree with.
Tell me whether it helped you in any way and if we get 50 likes and 20 comments I will consider making the next episode.
Shocking Truths no one talks about in trading:
1. You may have the best strategy, signal provider or learned everything about trading, but what counts is what happens to that knowledge 5 seconds before pressing the buy/sell button.
2. What is Mathematically optimal is Psychologically impossible.
If you have a strategy that gets wins of 25R but has like 12 losses in a row, DUMP IT.
Mathematically, you will make money at the end, Psychologically you will quit before you take trade 13.
3. You start winning in trading when you believe you can lose (Trading Paradox).
Consistently profitable traders have one thing in common: they place their next trade like it was already a loser.
4. Extremely good analysts are most often bad traders....you can be right about the direction but fail in the critically important aspect of Entry timing and still lose the trade.
5. IT IS THE SIMPLE THINGS THAT WORK!.
Most people will tell you to look for complex strategies that look for "Random walk algorithmic discrepancies that rhyme with Chaos theories....and all that blah..." But I have been on that path and I hate to break it to you that a guy/girl using only support and resistance and simple moving average crossovers with a verified and bactested edge and discipline will most likely be more profitable.
5. THE MORE OBVIOUS A TRADE IS THE GREATER THE CHANCES YOU LOSE IT.
Most people think that if a trade has soooo many confluences it is more likely to work....well that might be true to an extent after which it is a blatant fallacy. From historical data and my own personal LIVE trading results, the probability of a trade working out reduces DRASTICALLY when the number of confluences crosses 5.
I theorize that this happens because market makers will see all the orders placed at that point is soo much(cause everyone will see the opportunity with their different approaches) and take them all out.
6. No one can sell a money printer, cause it has no price.
If someone offers to sell you a robot or STRATEGY that triples your money every month, laugh and pass, if you don't and end up buying that....you deserved to be scammed.
Think about it the person can just take $100 and apply his/her magic to it and print out Elon Musk's networth in lower than 3 years using compounding......and he/she will sell you that for $2000?, you must be kidding me!.
7. Your consistency has nothing to do with your strategy but your mind.
I can bet you my life's earnings, that there is someone out there, using your exact entry and exit rules but is profitable and you are not.
A better strategy brings in more profit, but any random edge with the right mindset and risk management MUST be profitable.
8. Almost everything in life is a pyramid-scheme, & survival of the fittest and trading is not left out.
No matter how much we desire to the contrary, it is IMPERATIVE THAT TRADING HAS MORE LOSERS THAN WINNERS.
The winners in trading have to be relatively fewer cause they win a lot and hence they need soo many losers to give them that money.
There is no bank that hands at money to you when you win, your job as a trader is to outsmart some other fellow and TAKE his/her money and once you come to terms that every dollar lost by you trading, is a dollar gained by someone else in this zero-sum game, you will realize only YOU has got your own back.
9. You can NEVER completely eliminate emotions in trading but you can set rules that allow you trade only when you are at your optimal state, and gives you a day or two vacation when you are down.
10. Reading this article will definitely NOT HELP YOU, it is remembering it the moment before you place your next trade that will.
Pls LIKE and Subscribe, I want to know what you think about this article and which point you agree with the most or disagree with.
Tell me whether it helped you in any way and if we get 50 likes and 20 comments I will consider making the next episode.
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