5 Trading Lessons that 99% of Traders Lose Money Without Knowing
1) Blaming the Market for Your Losses Won't Help
Belief that institutions are some kind of evil that's after your stops is a bad idea.Retail is hardly 5% of the total. The market is simply looking for fair value.
Take responsibility, stop blaming the market.
2) A trading strategy (TS) should fit your lifestyle/mentality, not the other way around.
Types of trades, timeframes, assets, volumes of trades should depend on your lifestyle. If you work 10 hours at a factory, then it makes no sense to trade scalping at night, it is better to be an investor and open deals once a week.
3) If you don't enjoy trading after a year or two, it's not for you
. You can't be good at something you don't like, even after spending years on it. Life is long, choose other professions that make you happy.
I have been losing money for a long time, but I have always enjoyed trading.
4) Trading is very profitable, but very slow
Everyone wants to earn a million dollars for 1-2 trades after spending 15 minutes on it. This is real, but for this you need to monitor the markets for years, improve the TS, keep a log of transactions and study new tools.
5) If you don't constantly adapt, use new information, you will fail.
Markets are very fast learners. What is innovative today will be common knowledge tomorrow. Your "tems" and tricky ways to beat the market will not exist for long.
Be prepared to lose your advantage and gain another.