How to make money trading

[eddietheeagle]

Flicking through this website over the past few days it appears to me there are a lot of people wanting "props" for sharing their pearls of wisdom I have yet to find one however that spells out the harsh reality of trading.

I'm expecting the naysayers to jump all over me when I speak the truth.

When you were young and your parents told you that if you put your mind to anything you could acheive it. THEY WERE LYING.

The reason 80% of traders lose, 15% make a living and 5% are super rich has nothing to do with the strat they are using, has nothing to do with what moving averages they are using it has everything to do with their approach to money. The best guys don't care, that's it DON'T GIVE A CRAP. There will be a sliding scale from top to bottom of the guys who hold money in least regard to those who hold it in most regard. The guys at the top don't care, the guys at the bottom use gocompare.com

If you're sitting in your 2 bed bungalow in Wigan, dreaming of endless holidays to the Costa flying Airtours Premium Class and staying in a 4T Aparthotel for 6 months of the year and having a C Class on the drive. Forget it, the dreams over. It ain't gonna happen. You have NO CHANCE of succeeding you're stacking the odd against yourself.

80% of people care about the money too much and thats why 80% of people lose. The harsh reality is that in my experience any system in the world can be taught to somebody, but a person who cares about the money too much that 80% again WILL NEVER SUCCEED. Most people are in complete denial about caring about the money and are probably to stupid to realise that is what they're doing.

They don't understand how when they look back on the chart they could have made all these pips yet are sitting their with a loss, the penny doesn't drop.

They don't understand that money is only a commodity, they cry about something that will never cry for them.

If you're 50 years old, have had a safe 9-5 for the past 30 years, invested in a high interest rate bank account because the stock market was too risky. WAKE UP, smell the coffee you're never gonna succeed. Read as much of Make money by trading hammers as you want, it ain't gonna happen.

I would suggest the reason dented made the paper he did with this is because he too probably didn't care about the money.

So keep trawling for hours on end looking for the holy grail. The reality is it's right in front of your EYES. THIS IS THE HOLY GRAIL only most people are too stubborn/stupid to accept it.

SERMON OVER

 

[Pi3141]

I suppose this makes some sense. For me, it explains why, when I paper trade, I can do reasonably well because I know that its not real money and so I dont care too much whether I win or lose. But the situation changes when I trade with real money (which isnt going as well as I'd hoped) and I, like you say, actually care too much about the money I lose/win.

 

[gamma]

what a load of drivel

 

[Albert Carey]

what a load of drivel

I wonder how he carried it here.

 

[Windowsill]

Flicking through this website over the past few days it appears to me there are a lot of people wanting "props" for sharing their pearls of wisdom I have yet to find one however that spells out the harsh reality of trading.

I'm expecting the naysayers to jump all over me when I speak the truth.

When you were young and your parents told you that if you put your mind to anything you could acheive it. THEY WERE LYING.

The reason 80% of traders lose, 15% make a living and 5% are super rich has nothing to do with the strat they are using, has nothing to do with what moving averages they are using it has everything to do with their approach to money. The best guys don't care, that's it DON'T GIVE A CRAP. There will be a sliding scale from top to bottom of the guys who hold money in least regard to those who hold it in most regard. The guys at the top don't care, the guys at the bottom use gocompare.com

If you're sitting in your 2 bed bungalow in Wigan, dreaming of endless holidays to the Costa flying Airtours Premium Class and staying in a 4T Aparthotel for 6 months of the year and having a C Class on the drive. Forget it, the dreams over. It ain't gonna happen. You have NO CHANCE of succeeding you're stacking the odd against yourself.

80% of people care about the money too much and thats why 80% of people lose. The harsh reality is that in my experience any system in the world can be taught to somebody, but a person who cares about the money too much that 80% again WILL NEVER SUCCEED. Most people are in complete denial about caring about the money and are probably to stupid to realise that is what they're doing.

They don't understand how when they look back on the chart they could have made all these pips yet are sitting their with a loss, the penny doesn't drop.

They don't understand that money is only a commodity, they cry about something that will never cry for them.

If you're 50 years old, have had a safe 9-5 for the past 30 years, invested in a high interest rate bank account because the stock market was too risky. WAKE UP, smell the coffee you're never gonna succeed. Read as much of Make money by trading hammers as you want, it ain't gonna happen.

I would suggest the reason dented made the paper he did with this is because he too probably didn't care about the money.

So keep trawling for hours on end looking for the holy grail. The reality is it's right in front of your EYES. THIS IS THE HOLY GRAIL only most people are too stubborn/stupid to accept it.

SERMON OVER

This is just one of the realisations on the way to becoming a profitable trader! Keep with it!

 

[intradaybill]

Ask the FED. The best way to make money is to make (print0 money.

 

[BSD]

I think you gotta know what you want if you don't wanna end up where you didn't want to, but then let go, secure in the knowledge that you're gonna get it.

That's positive confidence and aligns the forces of the Universe behind you.

Hoping by contrast is driven by the negative and unconstructive fear that your wish might not materialise and also delivers.

In other words, If you think you can you can, if you think you can't you can't as per M. Henry of the Fords.

Ditto Andrew Carnegies insight that thoughts are things.

First you gotta have confidence, without the confidence that you can pick up that babe or win a gold medal or make a fortune one thing is guaranteed, it ain't gonna happen.

Go Ahead....Smile!
Those that look on the bright side end up healthier and more successful than the rest of us. But guess what? Now researchers have a cheat sheet that can help you become more positive...

In that sense I agree with the OP.

 

[BSD]

In sport competitions the difference between a gold medal or second place, or between a Tiger Woods and the guy one rung below him is entirely between the ears, and the same applies in all walks of life, no matter if it's a quest for a bed fellow, partner, wealth or happiness:

You need confidence to succeed, but if you don't have it, faking it till you make it is just as viable.

From the link above:

In fact, in a study of law students, Segerstrom found that a person's level of optimism in the first year of law school corresponded with his or her salary 10 years later. The impact wasn't measly: On a 5-point optimism scale, every 1-point increase in optimism translated into a $33,000 bump in annual income.

Attitude adjustment

The quickest way to get yourself into the positive-feedback loop that keeps optimists going strong (hard work leads to success, which leads to more self-confidence and a willingness to work even harder, which leads to...) is to act like one. What's more, studies looking at the "fake it till you make it" approach show that it can have a surprisingly strong--and immediate--impact on your emotions. In research at Wake Forest University, for example, scientists asked a group of 50 students to act like extroverts for 15 minutes in a group discussion, even if they didn't feel like it. The more assertive and energetic the students acted, the happier they were.

What's best about this kind of cognitive behavioral change is that it doesn't even require much faith, Segerstrom says. "You don't have to believe an antibiotic is going to work for it to work." The same is true of reaping the benefits of adopting a positive mindset.

 

[arabianights]

I rate this OP 80% - should have made it more clear that not giving a **** is necessary but not sufficient.

Applies to everything in life pretty much methinks

 

[counter_violent]

The money...it's just another tool ...without it you can't trade, in the same way you can't trade without a platform or telephone or charts or anything you care to use.

To get to a state of not caring...reduce stake size to the point that it's insignificant on the scale of things...price can then do what price does ( whatever it likes) winners will take care of themselves. Losing positions will always present opportunities to manage.

Managing is what you ought to aspire to and be totally relaxed about any positions you may be in. To be relaxed means keep size down and to trade well within the bounds of margin and especially if leverage is being used. Leverage and/or over staking are the 2 killers... Mucho pain and all self inflicted...driven by greed.

 

[tomorton]

Yes. TA is easy. Our attitudes to money make the job hard.

 

[Black Swan]

The money...it's just another tool ...without it you can't trade, in the same way you can't trade without a platform or telephone or charts or anything you care to use.

To get to a state of not caring...reduce stake size to the point that it's insignificant on the scale of things...price can then do what price does ( whatever it likes) winners will take care of themselves. Losing positions will always present opportunities to manage.

Managing is what you ought to aspire to and be totally relaxed about any positions you may be in. To be relaxed means keep size down and to trade well within the bounds of margin and especially if leverage is being used. Leverage and/or over staking are the 2 killers... Mucho pain and all self inflicted...driven by greed.

I found this a while back whilst on my t'interweb travels, it demonstrates how patience can lead to a natural organic compounding of results...Of course If folk actually believe that a 1% return per month on capital is *good* and all they can realistically achieve/aim for, then these figures will look like fantasy...and in that respect support the O.P.'s original point...

http://www.forexoma.com/a-forex-tra...eed-and-make-53000-per-month-after-two-years/

 

[LoveToTrade]

Nice one BSD.

"Act as if" & "Wear the clothes for the job you want, not the job you have"

:clap:

 

[chloe_wong]

I'm new member here, oh, really quite impressive for this sentence you mentioned:

"80% of traders lose, 15% make a living and 5% are super rich"

 

[NoRhino]

Yeh some truth in what you say, basically your saying not getting emotionally tied down when you lose is an important attribute to have.

But really something like day trading which is a zero sum game will always have a smaller pool of winners, because in trading they start to trade a bigger size eventually to capitalize on their skills. It's just like any food chain, where you have fewer and fewer numbers the higher you go up. The big winners are supported by loads of smaller losers who collectively lose to make him be able to take such a big chunk out the markets.

 

[rathcoole_exile]

Nice one BSD.

"Act as if" & "Wear the clothes for the job you want, not the job you have"

:clap:

"fake it 'til you make it" ??

 

[fayalac]

I agree with you but these guy is not saying these for the same reason you think.

This is just one of the realisations on the way to becoming a profitable trader! Keep with it!

 

[fayalac]

Pay attention to the whole he said not just part, hes not wrong.

I'm new member here, oh, really quite impressive for this sentence you mentioned:

"80% of traders lose, 15% make a living and 5% are super rich"

 

[wackypete2]

Confidence is not necessary in trading, discipline is.

Hasn't anyone in their early trading days waited patiently while being confident their losing positions would come back. Unfortunately you blew out an account before you were done waiting? Lotta confidence, no discipline.

I must be reading this thread wrong. If I didn't care about the money I wouldn't need proper money management. If I didn't care about the money I never would have started trading in the first place. Still, today it's the money that motivates me but I have learned that greed is not good! I certainly don't trade for the excitement.

This is a good thread for debate so I threw my 2 cents in.


Peter

 

[bbmac]

The book Reminiscences Of A Stock Operator puts it very well and pretty well sums up why trading is so difficult and most lose, in that they cannot make the adjustment from normal human nature that can be destructive in trading. Ie:

....When a trade is going against you, normal human nature is such that it urges us to hope it turns around,....in this situation we should actually fear that it will not and cut the lower short....When in a trade human nature is such that it makes us fear that it may not go for us and the temptation is always to cut the winnner short and actually we should hope that it will and let it run.

G/L