FAQ How Difficult is it to Trade?

  • New to T2W? Welcome! This forum contains a list of the most frequently asked questions (FAQs) that new members want answers to. We don't allow new threads to be created so if you have an idea for a new FAQ please post it in the How the FAQs work thread.

tommac

Active member
202 13
Re: How difficult is it to trade?

As an ex forex and money market trader now doing my own thing( and yes I am one of the 19 in the other poll-never done anything else .) it is painfully obvious why most but not all fail. .Truth is we as home traders are trading blind. That is why most fail. We are clueless as to the positions of the major players who can move a market in an instant . There is no substitute for sitting on a forex desk and listening to **** bank trying to unload a huge or maybe not so huge position regardless of what the MA or Fib tells you and acting accordingly. Traders talk to each other constantly and we at home don`t get a sniff until its happened. Trading is a high kudos profession and I guess thats why most people fancy a go but hey so is being a Surgeon but I wouldn`t try it without years of experience. Majority of people just plain shouldn`t be doing it end of.
Sorry for rant
 
  • Like
Reactions: Trader Dan

Black Swan

Legendary member
5,613 833
Re: How difficult is it to trade?

As an ex forex and money market trader now doing my own thing( and yes I am one of the 19 in the other poll-never done anything else .) it is painfully obvious why most but not all fail. .Truth is we as home traders are trading blind. That is why most fail. We are clueless as to the positions of the major players who can move a market in an instant . There is no substitute for sitting on a forex desk and listening to **** bank trying to unload a huge or maybe not so huge position regardless of what the MA or Fib tells you and acting accordingly. Traders talk to each other constantly and we at home don`t get a sniff until its happened. Trading is a high kudos profession and I guess thats why most people fancy a go but hey so is being a Surgeon but I wouldn`t try it without years of experience. Majority of people just plain shouldn`t be doing it end of.
Sorry for rant
You're so right, you have to 'know your place' in the food chain and we are playing with the crumbs brushed off the laps off the big guys...Level 2 gonna help? LOL gtf...There are 10 big international banks that *possess* about 73% of all trading volume...endex...
 

shakespeare515

Active member
132 5
Re: How difficult is it to trade?

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
 

pboyles

Legendary member
8,072 1,301
Re: How difficult is it to trade?

Difficult and takes a long time, and for some people impossible.
 

charliechan

Experienced member
1,008 119
Re: How difficult is it to trade?

i'd say it's impossible if you waste your time reading and trying to learn from websites like this.
 

diy_

Junior member
31 0
Re: How difficult is it to trade?

i'd say it's impossible if you waste your time reading and trying to learn from websites like this.
That is true but the point of coming on here is to see if you're doing worse than average, human nature been what it is, most people would be sort of bragging that they doing ok but I've only seen one person so far saying that and thats after 2 years of loosing. I dont see this as a get rich quick scheme but more of a long learning process, Just wondering how long is long. I only just starts so didnt expect to get to grips till 18 months anyway.
dan
 

Dinos

Veteren member
4,112 713
Re: How difficult is it to trade?

imho fwiw, there is no get rich quick scheme, and KISS, thats its, everybody elses opinion is worthless as far as I'm concerned, I trade my system, for me, accountable to one person.....me....nobody else, and don't really give a sh*t whether what I post meets with their approval or not or their opinions, I've being being trading 15 years now and happy with the simpliest of set ups (no mega multi indicator system etc), don't listen to everybody else's opinion, do you homework, backtest, forward test, accept your wont get 100%, (its impossible), apply a sensible R&R and MM and you should reap the rewards, despite every joe bloggs argueing the toss, if it works for you, do it, work it and smile at the doubters, explain yourself to nobody and enjoy life............... thats its, fwiw
 

Jon Doe

Junior member
13 2
Re: How difficult is it to trade?

its not difficult to trade.

it is fairly difficult to develop a trading plan that will make more than it loses the majority of the time.

It is even more difficult to actually trade the plan that you have developed & recognised as one that will make more than it loses the majority of the time.
 

Dinos

Veteren member
4,112 713
Re: How difficult is it to trade?

its not difficult to trade.

it is fairly difficult to develop a trading plan that will make more than it loses the majority of the time.

It is even more difficult to actually trade the plan that you have developed & recognised as one that will make more than it loses the majority of the time.
Sorry bud, have to disagree 100%, you must be doing something wrong, you need a plan, back and forward tested and recorded to the finise detail, for every trade I take, before I hit the key, I know 2 things, the outcome of my trading plan, risk (if I get it wrong, what I will lose) and the limit (what I will take from the market), shouldn't be difficult in the slightest, your number/data crunching should give you a trading system, which if you choose to apply (given the outcome of your studies) should be relatively easy to apply, unless you doubt your own abilities to intrepret the information. Statisitics (if correct), can be applied, why would you trade if you did not trust the system you are employing to make you money, unless of course you are a gambler and are preperared to take a risk, as per my motto below:-
 

meanreversion

Senior member
3,398 535
Re: How difficult is it to trade?

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.
 

shakespeare515

Active member
132 5
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!
 

meanreversion

Senior member
3,398 535
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.
 
  • Like
Reactions: bevok

meanreversion

Senior member
3,398 535
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.
 

Dunecat

Member
69 1
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?