The Truth About Trading
Trading isn’t difficult. There I said it. Now I know this may go against every thing that you may have read online or heard from friends, but before you get all up in arms and prepare to burn me at the stake just hear me out.
Guest post from visionsofaffluence.com
Trading like most things in life has fallen victim to the human tendency to make every thing more complicated than it really is. This occurs because over time people build up all these ideas and myths about topics and obscure the simple principles that when understood will lead to success in any field.
Now let’s take a look at how this has occurred in trading.
One thing that has led to this over complication of trading is people’s fear of failure. Everyone knows how lucrative trading is but so few actually attempt to learn how to do it. Part of the reason why this happens is that people are scared to try because they believe they can’t do it, so they tell themselves that it is too difficult as an excuse not to try. Now this wouldn’t be so bad if people would keep their negative views to themselves but of course they don’t. Instead they preach the day trading is too difficult doctrine to everyone they know that expresses an interest in day trading which causes more people to thinks its too difficult and then they tell more people and so on and so forth. This has resulted in the general population believing that day trading is harder than it really is, discourages people from trying it, and causes those that do to try all unnecessary methods to day trade successfully and this is where indicators come in and complicate things further.
You see indicators are supposed to help traders but in reality all the do complicate matters. You see the public has been brainwashed into thinking that the only way to trade effectively is with indicators. So every new trader piles a bunch of indicators on his chart in hopes of deciphering the unreadable price action to find out where price is going so they can profit. This never happens as the indicators give off late or even false signals. So then the day trader finds another set of indicators and they do the same thing. And before you know it the myth of trading being difficult is perpetuated and all because people chose to focus on the wrong things.
Trading is only as difficult as you make it. If you decide you want to listen to every one else and believe that trading is the hardest thing in the world or pile a bunch of indicators and wonder why you can’t get anywhere go ahead be my guest. But the next time someone asks you about trading don’t tell them how difficult it is instead tell them how difficult you made it by not focusing on the only thing that really maters. The price action itself.
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Excellent post !……..the two vital ingredients for successful day trading……………..price action and self discipline.
Learn to read the candles, they ARE the price action.
Learn to know the self, learn which are the demons that control the self, fear, greed, impatience , pride , overconfidence , anger, revenge ?
Find the demons , conquer the demons , read the candles and success will follow.
Just read this and decided to take all of the crap of my charts, now have Heiken Ashi candles and a trendline and that’s it. I feel like a weight has just been lifted off my shoulders. I can see the chart, crystal clear. Love the article, thanks.
Yes trading is easy. Maintaining an edge on the market over the long term, however, is difficult.
great… I do agree with you guys. one thing you should know and the only essence of trading is about HOW TO MANAGE YOUR MONEY ! you control your RISK, so you can handle your psychology !! keep in mind that FOREX, STOCKS, FUTURES, BONDS etc. are not suitable for everyone. a good money management of trading would generate a higher opportunity to earn money consistantly. thx
Garbage, each and everyone to their own. Thats your opinion. Why is it they everyone who has used indicators and failed have to preach price action as their saviour.
There are traders who make money using both methods.
Trading is not hard technically. It does not require a whole lot of intelligence. In fact, a 10 year old could do it.
The hard part is dealing with the emotions and how they effect your trading and money management. Not to mention the stress of seeing tens, hundreds, maybe even thousands evaporate in less than a day.
Fred, make that US$35K down in one day back in early May. Most traders will know the exact date I’m talking about… You either made a killing, or like me…..
Anyway, have it all back in my account now, and am only just over the equity level of the 5th May.
I use some indicators, but not too many. Each to their own. A “naked” chart is not for everyone, and “Pure PA” is not the *only* way of going about things (note: I’m not dissing it in any way).
Find your own niche and comfort levels, figure what works for *you*, and go for it. Yep, it really ain’t that hard. Just watch out for Black Swans.
Man you are, just giving us a preaching lecture
you are giving no proofs just talks
every one knows that market makers have made trading as slaughtering house, go to statics and read how is anyone chance of success
Well said, I could not agree more.