The experience of observing yourself and others shows that the biggest problem of all novice or already well - chewed traders is money. The desire to earn money quickly. In general, the reasons for your troubles lie in this. When I came into trading after watching enough ads: I will create my own system. Why? What сkind of system? You have read a book on technical analysis, a couple of articles about successful success and "I will write a trading plan". Let’s look at such statistics about the most difficult and stressful professions, according to some Americans expert. Top 3: traders, doctors, lawyers. Do you feel it? Once you read the criminal Code, you won't be the tough guy who closes the case. After reading book on anatomy, appendicitis cannot be cut out. Not to mention the fact that doctors stand for 12 hours at the table, picking at the brain, so that the person continues to exist. And you, after reading a book on technical analysis, want to become a trader. Well, it's funny. Letте's compare the average duration of training for a specialist. A doctor, even in the countries of the former Soviet Union, is trained and on average lasts 6 years at the university. And you are not a doctor yet, you are an intern who needs to study for another year, pass exams, and then you are a doctor. But you can't perform brain surgery yet, you need to work for 1-2 years as an ordinary doctor, then go to school, this is another 1-2 years, and then, maybe, you will be put to do complex operations, under the guidance of a much more experienced colleague. Counting: 6+1+2+2=11 years. A lawyer is also not from the university bench will go to defend a local authority. He must gain experience, become a specialist, and this will take years. And we, traders, have everything easy and simple. Here I read, there I read, there I was directly charged with the energy of trade and went to put my batteries on graphite. Let's look at technical analysis books, articles, and so on. What do they have in common? Nothing. Technical analysis is the basics, and if you ask to name the authors of the manuals, you will start something like this: Schwager, Volman, Nison, and then go: Fuller, Beggs, Dante, Raschke, Elder, maybe James16 will be remembered (it's an honor for me to write lines on the same forum where this legendary person shared his experience). Bollinger(already retired for a couple of days). Now, please note: the first three listed personalities are technical analysis, and the content of the books is about the same. But the whole subsequent series, what do they have in common? Except for the field for actions in the form of a graph. NOTHING. These are separate systems, separate views on trading, each name is a separate story, some of which grew out of the standard classical analysis.
So we begin to unravel the tangle. A beginner writes a trading plan based on such developments. What are the chances of success? They are almost nonexistent. Because the developments are not studied properly, each element is not disassembled into molecules. This is the first sin. Due to the fact that the method is not studied well enough, swings with transactions begin. Okay, if it’s just a minus in the framework of money management or risk management, it's rare, but it happens. Most people start to overestimate the risk and lose their deposit to the broker's delight. Recently I read one book: "With silt habits". The episode from the book is simple -the more we merge deposits, the faster it becomes a habit. Were you taught by biologists? Norm of reaction topic, here are your constant plums and become the norm of reaction for your brain, and then hello depression. I won't hide it, I'm also from this rink. And I've been fighting this habit, and I'm still fighting it.
That's it, your mousetrap clicked. You don't have a system, but only brief descriptions of other people's approaches, even if this 100 - page description is a short description, believe me. You have constant drains due to the desire to make quick money.
You don't need a broker who tweaked the quotes or mythical personalities who knock down your stop-loss , or economic news on which you lose your deposit. What for? You will ruin yourself, and this process has already begun.
By the way, about money and the desire to earn money: according to the results of modest observations, most people have an attitude: I will have a deposit of 3000$ - 5000$, then I will adhere to all the rules, work as needed. And now you need to quickly earn a mythical amount, and then everything will be fine. So, dear ones, it won't happen. None of this will happen. Whether you have 100$, 1000$ or 10 000$, you won't have any of this. I was convinced by my own example, when a large amount of money flew away in an hour, and on other people's accounts, when people merged apartments in a day. Yes, I witnessed a case where a trader leaked 70 000$ faster than he could click his finger.
Wow, the monologue turned out, but just a few simple conclusions from this:
1: Look for what is closest to you, and if you like it, understand it thoroughly. Build your theories on this material, you do not need to blindly believe the lines in the manual and strictly follow them. Look for your little things, test them, build theories about them, refute or confirm them. Do you know when I wrote my trading plan? In the eighth year of his trading career.
2. You are set up for a long-term perspective and the opportunity to reach the security itself through trading. Your goal is not to earn money, money. No beating off the amounts, no pitying snot about the merged deposit, there was and was, there will be more, but then. Survive for at least six months, close the profit every month, and then you can draw intermediate conclusions. Again, this is a reference to habit, they are formed not 21 days, which is so advertised on the Internet, this process is very long, 21 days is just the beginning. The longer you maintain a constant profit environment in your head, the less likely it is to be destroyed.
3. Analyze each trade for a negative, become a child-why-should-you-be-in-the-know attitude to yourself, and deal with both the profit and the minus.
4. Well, years, comrades, years of work, and not in one sitting to build up a trading plan for yourself.
You will succeed, and as always with me, my chaotic manner of presenting the text.
Thank you for your attention, your FaD.