I find many intermediate traders jumping from system to system looking for a strategy which produces almost 100% winning trades.
Problem is, this behaviour is coincidental with what 90% of traders do - the losing 90%.
It's only when one sits down with a reliable system and follows through with it through thick and thin will he/she start to make money.
Providing a decent system is selected, as long as a trader uses this very same system day in, day out, will he/she start to see positive results.
Almost invariably, it's not the system which is at fault, it's the trader's inability to stick with it during the initial phases.
Many times, a system will produce poor to average results when first tested. This is enough reason for a new/intermediate traders to give up and discard the system in search for a new one.
As soon as a new one is found, the cycle repeats itself.
This is the classic beginners trap.
I myself am always looking for new systems but I still stick with the good ole tried and tested system which still produces modest profits.
If a new system comes along and it checks out, I incorporate that into my testing and possible trading at a later date.
The second reason why many traders fail is due to lack of control.
I find many traders inquiring about a system's every single aspect down to the minutest detail. They want to follow the system rigidly for fear of losing because they entered a pip late or placed the stop loss in the wrong place etc...
A trader can only take control when he realises that HE/SHE controls every trade.
He has the ability to check, test and back-test various other methods with the same system.
He has the ability to check other settings to see how they pan out.
He has the ability to enter early or late and see how that affect the trades.
He has the ability to widen or shorten stops and see how that affects profits.
He can do pretty much whatever he wants...
But what does he do instead?
He looks for more details on the system and for more reason why he's failing. He's trying to rationalise why a trade went wrong and what he should have done instead. He's a follower, not a leader.
Don't get the wrong message here. Beginners NEED to go through this phase to learn the ropes but when a trader advances to the "intermediate level", this behaviour really should change.
I would like to see more and more intermediate traders taking charge of their trades by simply testing new things and following their own brains rather than someone else's. This type of effort will pay dividends at a later stage and is invaluable to the learning phase.
Hope this makes sense,
Jetheat
Problem is, this behaviour is coincidental with what 90% of traders do - the losing 90%.
It's only when one sits down with a reliable system and follows through with it through thick and thin will he/she start to make money.
Providing a decent system is selected, as long as a trader uses this very same system day in, day out, will he/she start to see positive results.
Almost invariably, it's not the system which is at fault, it's the trader's inability to stick with it during the initial phases.
Many times, a system will produce poor to average results when first tested. This is enough reason for a new/intermediate traders to give up and discard the system in search for a new one.
As soon as a new one is found, the cycle repeats itself.
This is the classic beginners trap.
I myself am always looking for new systems but I still stick with the good ole tried and tested system which still produces modest profits.
If a new system comes along and it checks out, I incorporate that into my testing and possible trading at a later date.
The second reason why many traders fail is due to lack of control.
I find many traders inquiring about a system's every single aspect down to the minutest detail. They want to follow the system rigidly for fear of losing because they entered a pip late or placed the stop loss in the wrong place etc...
A trader can only take control when he realises that HE/SHE controls every trade.
He has the ability to check, test and back-test various other methods with the same system.
He has the ability to check other settings to see how they pan out.
He has the ability to enter early or late and see how that affect the trades.
He has the ability to widen or shorten stops and see how that affects profits.
He can do pretty much whatever he wants...
But what does he do instead?
He looks for more details on the system and for more reason why he's failing. He's trying to rationalise why a trade went wrong and what he should have done instead. He's a follower, not a leader.
Don't get the wrong message here. Beginners NEED to go through this phase to learn the ropes but when a trader advances to the "intermediate level", this behaviour really should change.
I would like to see more and more intermediate traders taking charge of their trades by simply testing new things and following their own brains rather than someone else's. This type of effort will pay dividends at a later stage and is invaluable to the learning phase.
Hope this makes sense,
Jetheat
