Why so few traders manage to bring their trading to the level of stable earnings, when trading becomes a source of income, and not a source of constant disappointment?
Because before you start to get the "easy" money that everyone comes to this industry, you will have to go a long way to make a lot of mistakes, each of which will cost you money. To fall down many times and get up more times, to lose money at the same time without losing the motivation to move forward, to learn yourself and change your attitude to trading. In addition to all of this, the difficulty is that no trader knows how much time it will take him. And the truth is that 95% don't have the strength and patience to do it.
I can point out 3 main criteria for stable trading:
The right attitude to losing trades.
Confidence in your strategy.
Availability of trading rules and most importantly the desire to follow them.
1. Accepting losses.
To survive in this field, a trader has to learn to properly deal with losses, without that he will not be able to make a profit in the long run. Just like in sports, first you learn how to fall properly, then everything else.
The thirst for quick money, which is present in almost everyone at the initial stage, generates fixation on profits. With this attitude the trader becomes highly vulnerable and morally unprepared to accept and tolerate losses. Nobody likes making mistakes and losing money. And large losses cause a lot of stress, which can lead to emotional burnout, depression and even deprive the strength to continue trading.
Trader's dependence on the expectations of the result of each deal will invariably make him experience emotions. And emotions will push him to make erroneous actions. These constant emotional swings take away the trader's strength and leave him with no opportunity to improve his trading. He's busy just trying to keep his mental balance somehow.
How do most traders try to solve this problem? They try to avoid losses and fight their emotions.
But that's impossible, you, see? This is a vicious circle.
What you can and should do is to shift your attention from the result of each trade to the result of a time period (for example, a month). It is very important to understand and accept that: in any sequence of trades, there is a random distribution of profitable and losing trades.
This will help reduce the emotional component of trading. When you do not expect any result from a trade, the result of the trade ceases to matter and causes emotions that push you to take the wrong actions. The trader's job is to make his trading as psychologically comfortable as possible.
2. Strategy
A strategy is a method. Most traders, having suffered another failure, begin to change their trading strategy or look for another one. They sincerely believe that the problem is in it. That it is the strategy which does not let them to earn profit. But there are no profitable or unprofitable strategies. Traders make them so.
In fact, a strategy is not supposed to provide a trader with profit. It has only one function. It should provide trader's understanding of WHAT, WHERE and WHEN to trade. And the sooner the trader stops shifting responsibility from himself and his actions to his strategy, the faster he will learn.
It will take time for you to feel confident in your strategy. Time to adjust the method to yourself, to your understanding of the market. You can take any strategy you like as a basis and taking into account your weaknesses and strengths determine how and what you will trade.
3. Compliance with rules
The third and perhaps the most important criterion for stable trading is the presence and observance of rules. This is what will bring the trader profit in the end.
Trading rules have only two functions:
To provide a trading strategy with a positive mathematical expectation.
Provide correct models of trader's behavior in different trading situations.
So that it is possible to control emotions and not to leave the psychological comfort zone.
When successful traders are asked what is most important to achieve success none of them focuses on their strategy, they do not talk about the magic money management or special knowledge. But all of them say that it's important to follow their rules in a disciplined manner.
All traders who make money fanatically follow their rules. Because they know that strict adherence to trading rules is what makes them profitable. The market pays us money for our disciplined actions. We pay it for experience and it pays us for discipline. Most traders are mainly busy analyzing their trades and forget about their own behavior and trading mindset.
The desire to follow the rules arises only when you realize that they reduce your losses, which automatically increases your profitability.
Unfortunately, there is no ready algorithm for creating rules. They are individual, and that is the difficulty of learning to trade. The only guideline in their creation is that they must LIMIT your losses. Everything else is up to you.
Learn to listen to yourself by methodically and persistently striving to improve your trading. If you give yourself time to learn first, setting aside the desire for instant results, you will definitely come to have your own trading system sooner or later. An individual system which will bring you money.
Because before you start to get the "easy" money that everyone comes to this industry, you will have to go a long way to make a lot of mistakes, each of which will cost you money. To fall down many times and get up more times, to lose money at the same time without losing the motivation to move forward, to learn yourself and change your attitude to trading. In addition to all of this, the difficulty is that no trader knows how much time it will take him. And the truth is that 95% don't have the strength and patience to do it.
I can point out 3 main criteria for stable trading:
The right attitude to losing trades.
Confidence in your strategy.
Availability of trading rules and most importantly the desire to follow them.
1. Accepting losses.
To survive in this field, a trader has to learn to properly deal with losses, without that he will not be able to make a profit in the long run. Just like in sports, first you learn how to fall properly, then everything else.
The thirst for quick money, which is present in almost everyone at the initial stage, generates fixation on profits. With this attitude the trader becomes highly vulnerable and morally unprepared to accept and tolerate losses. Nobody likes making mistakes and losing money. And large losses cause a lot of stress, which can lead to emotional burnout, depression and even deprive the strength to continue trading.
Trader's dependence on the expectations of the result of each deal will invariably make him experience emotions. And emotions will push him to make erroneous actions. These constant emotional swings take away the trader's strength and leave him with no opportunity to improve his trading. He's busy just trying to keep his mental balance somehow.
How do most traders try to solve this problem? They try to avoid losses and fight their emotions.
But that's impossible, you, see? This is a vicious circle.
What you can and should do is to shift your attention from the result of each trade to the result of a time period (for example, a month). It is very important to understand and accept that: in any sequence of trades, there is a random distribution of profitable and losing trades.
This will help reduce the emotional component of trading. When you do not expect any result from a trade, the result of the trade ceases to matter and causes emotions that push you to take the wrong actions. The trader's job is to make his trading as psychologically comfortable as possible.
2. Strategy
A strategy is a method. Most traders, having suffered another failure, begin to change their trading strategy or look for another one. They sincerely believe that the problem is in it. That it is the strategy which does not let them to earn profit. But there are no profitable or unprofitable strategies. Traders make them so.
In fact, a strategy is not supposed to provide a trader with profit. It has only one function. It should provide trader's understanding of WHAT, WHERE and WHEN to trade. And the sooner the trader stops shifting responsibility from himself and his actions to his strategy, the faster he will learn.
It will take time for you to feel confident in your strategy. Time to adjust the method to yourself, to your understanding of the market. You can take any strategy you like as a basis and taking into account your weaknesses and strengths determine how and what you will trade.
3. Compliance with rules
The third and perhaps the most important criterion for stable trading is the presence and observance of rules. This is what will bring the trader profit in the end.
Trading rules have only two functions:
To provide a trading strategy with a positive mathematical expectation.
Provide correct models of trader's behavior in different trading situations.
So that it is possible to control emotions and not to leave the psychological comfort zone.
When successful traders are asked what is most important to achieve success none of them focuses on their strategy, they do not talk about the magic money management or special knowledge. But all of them say that it's important to follow their rules in a disciplined manner.
All traders who make money fanatically follow their rules. Because they know that strict adherence to trading rules is what makes them profitable. The market pays us money for our disciplined actions. We pay it for experience and it pays us for discipline. Most traders are mainly busy analyzing their trades and forget about their own behavior and trading mindset.
The desire to follow the rules arises only when you realize that they reduce your losses, which automatically increases your profitability.
Unfortunately, there is no ready algorithm for creating rules. They are individual, and that is the difficulty of learning to trade. The only guideline in their creation is that they must LIMIT your losses. Everything else is up to you.
Learn to listen to yourself by methodically and persistently striving to improve your trading. If you give yourself time to learn first, setting aside the desire for instant results, you will definitely come to have your own trading system sooner or later. An individual system which will bring you money.
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bit.ly/3spSQqC
🔻FREE Telegram channel🔻
t.me/DeGRAMChannel
🔻Contact for Paid SIGNALS🔻
t.me/DeGRAMForex