Trading - promising for many, bankrupt for many more.
One of the most important principles underlying the market is:
if someone wins someone else must lose even or more.
In other words, trading is not a win-win but a win-lose game.
Obviously, we each go on the assumption that we have enough information, we use enough indicators, we have (or not) a strategy and a plan, or maybe specialized support, and so we can not or at least should not lose at all, but to win ... very much.
Here is the first mistake: we are almost entirely concerned about the potential gain, which at the theoretical level of a great Laverage, is an exorbitant one, or the potential loss, which also amplified by the leverage system can get us out of the game.
The source of this mistake is the futility in our approach to the field - trading with ignorance, fear or in the spirit of "adrenaline," not based on logical deductions, but on intuition, testing the simple ... luck.
Without excluding the circle of professional traders, the problem arises especially among those for whom trading is a secondary activity. Many do not pay a proper attention to trading, do not treat it as a real investment, precisely because it is a ... secondary activity.
At the forefront of the inclination towards the field, is either the desire to win very much quickly either the fear of not losing.
First of all, you cannot win very much quickly, at least not constantly. Secondly, if you are not willing to risk, you should not trade in the the first place - the predictability may never be 100%. Thirdly, the concern of a professional trader is not primarily the profit he could make or the amount he could lose but to trade in "correctly", whatever that would mean in his own work discipline.
Many investors do not take so seriously the need for involvement, work, a methodical approach, a rigorous money management system when it comes to trading, compared to any other conventional bussines. They do not take seriously, first of all, their own quality of investors.
Suppose you open a small business - a restaurant.
Obviously, as an owner, your primary responsibility is to ensure the highest profitability and to avoid losses as much as possible. It is equally obvious that you will not get the profit just by wanting it and you will not avoid losing simply because you are afraid of it.
You will have to mobilize your time and resources to make a business plan, negotiate the best prices with suppliers, hire the most skilled chefs, make sure your staff behaves politely with your customers, and so on.
Even the full delegation of your tasks can not free you from the responsibility of bankruptcy if you have not acted to develop new strategies when it did’t work or economic conditions get worse.
Trading, even practiced only part-time, is nothing more than a business, an investment, and the capital is the trader's oxygen supply in the market. Like any other business, it can not develop chaoticlly, in the absence of a rigorous, stepped plan, based on some intuitions, whims or emotional escapes.
The focus on profit generates greed, and the one on loss generates fear, both great sins in trading, precisely because of their emotional component. In both cases, we are psychologically compelled to make mistakes.
This very emotional flow and ebb are the ones that move the market.
Inevitably, every trader enters this game, but what is to be targeted is to understand the factors, the way and the magnitude of triggering the flow and ebb, so that he does not get swallowed. Simply put, the two levers behind the market are demand and supply - materialized positions of the masses' opinion, the consensus of the participants with reference to a certain value in relation to another.
The psychological factor is therefore the best predictor and at the same time the great enemy. We can successfully anticipate, in the sentiment analysis, what the price direction will be, but it will mean nothing, it may even mean a loss if we do not anticipate and master our own feelings as well - will we be afraid to enter the trade? will we enter but we will liquidate it at the first sign of contradiction of the premise-scenario? will we rush, enthusiastic, the entry to find it was just a false breakout?
Concluding, the foundation on which we build our knowledge, plan and strategy must be the responsibility for our own investment - We need to want our success, but realistically, quantified and targeted.
At superficial level, the fact that each one of us wants success is as true as the fact that out there are millions of diet books and weight loss programs and millions of people who suffer from obesity, at the same time.
No one can make order in your thought and in your trading style. There may be mentors to show your way, to support you, but you alone can give yourself your motivation and reinforce your work discipline.
The biggest obstacles in this respect will be your own expectations - unrealistic in terms of the time you have given yourself, or the steps you have chosen to jump to get to the destination faster ... and you woke up with an empty account
A professional trader can not afford illusions. A professional trader does not know "secrets" or "magical methods" and does not necessarily have a 5-digit account from the beginning.
A professional trader synchronizes his thinking with market dynamics, understands the psychology of the masses, adapts himself, risks only in a calculated and assumed manner, and is able to accept that some of his predictions were wrong, before losing even more in hope that he can recover the loss if he risks even more.
Ignorance, fear or greed will invariably destroy your investment. Ignoring the psychology behind the graphs will destroy your investment.
Only YOU can choose to learn this lesson less or more expensive!
MONTHLY YIELD | ||
---|---|---|
January 2025 | ||
Procent + | Procent - | Total |
17.26 | 6.00 | 11.26 |
December 2024 | ||
Procent + | Procent - | Total |
28.69 | 3.54 | 25.15 |
November 2024 | ||
Procent + | Procent - | Total |
30.78 | 1.25 | 29.53 |
TOTAL | 65.94 |