How Difficult is it to Trade?

This is a discussion on How Difficult is it to Trade? within the New to Trade2Win forums, part of the Reception category; Originally Posted by Adamus There's a poll at the moment asking how many people are actually active full time traders ...

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Old Jun 16, 2010, 1:49pm   #41
Joined Jan 2009
Re: How difficult is it to trade?

Quote:
Originally Posted by Adamus View Post

There's a poll at the moment asking how many people are actually active full time traders making a living at it. The answer is anyone's guess. It might be a lot less than we think. only 19 (50% of people who answered the poll) say they are, but almost 1000 people have read the thread - so assume the rest of the 1000 are people who are trying but not succeeding, that's 1 in 50.
That was my poll. My guess before I started that was 1 pct, so 1 in 50 sounds like it might be about right.

There are 6 of us in our central London office, we are all self-backed and full time. When we started off, there were 2 and I thought getting additional joiners would be easy, but it took much longer than we thought.
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Old Jun 16, 2010, 2:00pm   #42
 
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Re: How difficult is it to trade?

The way I see it, is that most traders fail because it is TOO EASY to open a forex trading account.. One opens the account makes a few pips on demo, then goes live.. Then proceeds to overleverage, ignore stoplosses and is out of the game in a week or less. That trader becomes a statistic. I would guess that if you only asked traders who have received proper training the percentage would be much higher.. And I doubt there are many successful traders on this board.. WHy would they be here? This board is not a good place for that poll because there is not a good representative sample of the trading community on this board. It's is mostly a bunch of new traders trying to be successful without paying for proper training. Good luck to you!
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Old Jun 16, 2010, 2:01pm   #43
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Re: How difficult is it to trade?

My 2 cents worth on why trading is difficult -- it runs counter to human nature to a) want to be right and b) want results quickly. Wanting to be right leads to taking profit too soon and not getting out of losing positions when you should (a perfect example of this is a "Holy Grail" thread on this site which was recently closed -- the threadstarter's only interest was 100 pct winning trades and of course he ended up wiping his account).

Wanting to see results quickly results in trading without a plan, overtrading and risking too much of one's capital, all fairly dangerous practices.
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Old Jun 16, 2010, 2:06pm   #44
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Re: How difficult is it to trade?

38 steps to becoming a trader --

1. We accumulate information - buying books, going to seminars and researching.
2. We begin to trade with our 'new' knowledge.
3. We consistently 'donate' and then realize we may need more knowledge or information.
4. We accumulate more information.
5. We switch the commodities we are currently following.
6. We go back into the market and trade with our 'updated' knowledge.
7. We get 'beat up' again and begin to lose some of our confidence.

Fear starts setting in.

8. We start to listen to 'outside news' and to other traders.
9. We go back into the market and continue to 'donate'.
10. We switch commodities again.
11. We search for more information.
12. We go back into the market and start to see a little progress.
13. We get 'over-confident' and the market humbles us.
14. We start to understand that trading successfully is going to take more time and more knowledge than we anticipated.

Most people will give up at this point, as they realize work is involved.

15. We get serious and start concentrating on learning a 'real' methodology.
16. We trade our methodology with some success, but realize that something is missing.
17. We begin to understand the need for having rules to apply our methodology.
18. We take a sabbatical from trading to develop and research our trading rules.
19. We start trading again, this time with rules and find some success, but over all we still hesitate when it comes time to execute.
20. We add, subtract and modify rules as we see a need to be more proficient with our rules.
21. We feel we are very close to crossing that threshold of successful trading.
22. We start to take responsibility for our trading results as we understand that our success is in us, not the methodology.
23. We continue to trade and become more proficient with our methodology and our rules.
24. As we trade we still have a tendency to violate our rules and our results are still erratic.
25. We know we are close.
26. We go back and research our rules.
27. We build the confidence in our rules and go back into the market and trade.
28. Our trading results are getting better, but we are still hesitating in executing our rules.
29. We now see the importance of following our rules as we see the results of our trades when we don't follow the rules.
30. We begin to see that our lack of success is within us (a lack of discipline in following the rules because of some kind of fear), and we begin to work on knowing ourselves better.
31. We continue to trade and the market teaches us more and more about ourselves.
32. We master our methodology and our trading rules.
33. We begin to consistently make money.
34. We get a little over-confident and the market humbles us.
35. We continue to learn our lessons.
36. We stop thinking and allow our rules to trade for us (trading becomes boring, but successful) and our trading account continues to grow as we increase our contract size.
37. We are making more money than we ever dreamed possible.
38. We go on with our lives and accomplish many of the goals we had always dreamed of.
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Old Jun 20, 2010, 7:46am   #45
 
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Re: How difficult is it to trade?

I think this can be summed up pretty quick. The main purpose of the stock market now is to transfer money from shareholders to management.

I think this is pretty obvious, from the way managers of mutual and hedge funds can take huge leveraged bets with other people's money will little fear of repercussion. I don't even need to justify this, the last recession was a great example. Heads, the managers rake in commission in real money from paper profits, tails, the ultra leveraged bets(which is pretty much all they are) fail miserably, and the manager still walks away with past commissions of up to and over 20%. But as long as everyone else fails, to them it is fine. I don't know about you, but this seems like good work if you can get it.

So from the nature of the reckless bets placed on wall street, with little or no real science behind them, I would rather rephrase the question. How hard is it to make a bet?
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Old Jun 21, 2010, 3:34am   #46
 
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Re: How difficult is it to trade?

I am quite new to this arena of trading but from what I have observed so far, Shakespear has summed it up quite nicely. From those mentors I have been following to help me acquire the skills and knowledge I need to succeed, I also notice that the greater the humility of the trader, the greater the appreciation they have to continue to learn and expand themselves from others rather than suffer from an overinflated ego and stop learning altogether.

Good solid info in your reply Shakespear; thankyou!



Quote:
Originally Posted by shakespeare515 View Post
The difficulty depends on the trader. Everyone has strengths and weaknesses. you never know what yours are until you try. Most people can understand the setups, it's the discipline that gets most people. And you cant tell who will have good discipline from the beginning. I have seen people I would have never guessed would be good traders, and they turn out to be fantastic. It has nothing to do with intelligence. More to do with humility.

But with a good mentor. It gets a LOT EASIER!

...good trades,

Sam
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Old Nov 4, 2010, 6:53am   #47
Joined Nov 2010
Re: How Difficult is it to Trade?

It's not difficult to come up with trades, what's difficult is handling the losses. Haha
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Old Nov 4, 2010, 4:06pm   #48
 
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Re: How Difficult is it to Trade?

I understand the joke, but that is preciselly the fear...., its not difficult what is really dificult is to beat your mind...., the rest is easy
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