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; 1. A decent strategy 2. A set of rules 3. Discipline All that is needed is the 3 to implement ...

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Old Mar 6, 2011, 12:08pm   #49
Joined Aug 2009
Re: How Difficult is it to Trade?

1. A decent strategy

2. A set of rules

3. Discipline


All that is needed is the 3 to implement 2 relating to 1.
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Old Mar 6, 2011, 1:48pm   #50
Joined Jan 2011
Re: How Difficult is it to Trade?

Trading is extremely difficult. My approach is also extremely simple, despite the fact that it's entirely discretionary.

The main difficulty is maintaining the patience to only take good trades. This is easier than it used to be but can still be extremely hard at times. This week was a good example.

I got about 0.5R from a trade that (had I simply followed my exit strategy) would have yielded over 4R. 4R is plenty for an entire month.

To make matters worse, there was no good excuse for not following my strategy, I simply became distracted, moved my stop, and the rest is a painful history.

Since then I have had 3 trades all of which ended up at break even because I followed my strategy.

I now have two devils. The first is the temptation to abandon my exit strategy, and the second is the desire to trade to make up for the money I did not make.

Patience and discipline is what it really comes down to.

Trading is simple. The best way to make it easy, or at least easier, would be to not need to trade.
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Old Mar 26, 2011, 11:24am   #51
Joined Apr 2010
Re: How Difficult is it to Trade?

Bottom line when trading (how many times have you heard that) is you are betting on a number (the index /share price ect)

You are betting that number A (your target/limit order) will be reached before number B (your stop)

Next find good probability trades and employee good money management.

Sounds easy but it is not. phychology plays a massive part in trading anyone who does not believe that should read the disciplined trader by mark douglas.

I believe the human mind is actually set up to fail at trading (letting losses run in the hope they will come back ect)

Just my (very) humble opinion.
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Old Apr 18, 2011, 7:19pm   #52
 
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Joined May 2008
Re: How Difficult is it to Trade?

Trading is not that difficult if one has a well backtested plan and trade it like a machine.
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Old Apr 19, 2011, 8:01pm   #53
Joined May 2010
Re: How Difficult is it to Trade?

The key is;focus. Most on this forum are failures because they flit around and arrrrrrrround , one minute with pin bars, once they haven't even broke even with that, not to worry as there's a nice little quick 5 pips per day system you think you saw last week while googling.

GET A FOCUS! whether it's discretionary S/R, a mechanical strat, pin bars, stick with one thing dammit. I can't believe how much focusing on a handful of setups, documenting results , and not giving up after 5 losses, has improved my trading.
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Old Apr 19, 2011, 11:53pm   #54
Joined Oct 2008
Re: How Difficult is it to Trade?

It’s very easy and its boring and time consuming.

The trouble is that to do it right you risk 1-2% of your account, to get the same sort of return. So your return is relative to the money you already have.

If you do not have much money (account size) then it is hard to bother with for the time spent. Money is relative so I would imagine the same is true for a very wealthy person.

A lot of people are attracted to trading with ideas of excitement and making big money fast.

When the realities of a marathon and the non-existence of the quick sprint kick in, people find it hard to accept. So they either risk to much size or go on a continual search for new methods known as the holy grail, or find some other way to blow up, or they never really fully commit to the account size and time needed.
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Old Apr 21, 2011, 12:08pm   #55
 
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Re: How Difficult is it to Trade?

Trading is like making love to a beautiful woman.

Let the lady in question come to you. Then time your entry to perfection using a decisive move that demostrates commitment and conviction. Stay in for as long as you can using a great degree of skill and self-control. Finally take an exit and well earned reward.

This is why scalpers make terrible lovers.
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Old Apr 27, 2011, 7:53pm   #56
 
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Re: How Difficult is it to Trade?

I’ve actually adjusted my work schedule to leave earlier JUST to avoid “the crazies” on the road. You know, the drivers that make the evening commute feel more like an episode of The Dukes of Hazzard?!? I was able to access the best mix of streets and freeways and rode the crest of the traffic wave instead of being stuck in the middle of it.

This strategy worked because I had total situational awareness of the risk involved with traveling and made the necessary adjustments down to the time and route to take. So much so, that I knew if I was 10 minutes late getting out the door I was in for a white-knuckled thrill ride.

Properly trading futures is not far from this seemingly dissimilar analogy. Futures in my opinion have received its “boogey-man” reputation out of a natural fear of losing your money, but that happens largely in part to not properly assessing risk. Plus there’s such a total lack of understanding in the trading community as to why markets move in the first place. Once this instrument is put in the proper perspective and executed appropriately, it becomes more attractive than just about anything else out there. It has a much lower barrier to entry than whole shares and the fact that it’s leveraged is a plus, but only when that’s properly applied.

This approach has been working for me like clock-work regardless of market condition.
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