Most people are probably stuck due to the misinformation out there by Mentors or service providers. This often leads to a total failure by traders in the industry. Sometimes people just need a glimpse of information to change their lives completely but unfortunately, almost the whole industry is filled with the wrong information.
This lesson today will tell you the truth about the industry and what to expect. Keep in mind wherever you go what am about to tell you will always remain the same. The principles will forever remain constant.
Here is how it is:
- Decide that you are in the market for a long time.
- Learn as much as you can.
- Do not get greedy and rush to trade
- Develop a method to trade.
- Develop a money management plan.
- Be aware that a trader is the weakest link in the industry no matter how you fight, you will never win every time. Sometimes to get 3 winners in a row can be a lifetime challenge.
- Winners think and act differently from losers.
Develop patience and eliminate greed, your goal is to trade well and not to trade often.
Almost all new traders don’t realize Psychology is the root of trading success or failure. Some take a lifetime to understand this and when they come back to their senses they have lost a fortune.
The past is fixed and easy to analyze, the future is fluid and uncertain. What you expect has a 90% chance of not happening. So learn to accept reality and never force anything. Trying to always be right in the market is very expensive. When the market deviates from your analysis you must cut your losses fast without emotions. (USE A STOP LOSS) You will never be able to do it manually. Most people can not accept uncertainty, they always have a strong emotional need to be right so they hang on losing positions in a hope the market will turn around and harvest a huge chunk of money.
When we professionals are in doubt we focus on the bigger picture and wait while amateurs remain focused on the smaller picture and get very excited with tiny moves.
Big money did not grow big by being stupid.
Let me know your thoughts here about this lesson. Leave a comment below and let us discuss. And while you can please share to a brother out there.
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