Is it really that difficult?

May 7, 2004
5
0
11
ny
#1
Im new to trading..actually Im researching TA and learning to swing trade. First on paper then in about 6 months Ill look to put some money behind it. Im reading these posts and Iall I read about is how 98 % of all traders lose money or break even. It is truly discouraging to hear how no one is making any money. How can this be. I understand it is difficult to learn at first but I just read a guy trading for 7 years still has months/ years that he breaks even or still loses.HOW CAN THAT BE? Isn't there a learning curve to where it is possible to make a consistent buck and a decent living...Honestly, I have spent the last 3 months reading day and night about how to trade... but after reading all of these negative posts I wonder if it is even worth pursuing...Can one of the 2% of traders out there who are making a living from trading give me some POSITIVE feedback...thanks
 

stevem12

Active member
Jun 10, 2003
135
1
28
Midlands
#2
Tyson,
just because someone has periods when they break even or lose money, doesn`t mean they aren`t making a good living. There are plenty of traditional businesses that lose money for most of the year, but still turn a profit overall. Generally the shorter your time frame , the shorter your losing periods. Most successful day traders will only have losing weeks, and occasionally losing months. Swing traders can have losing months and quarters , and position traders can have losing years. Its all about your winners covering you losers and then some, over a period of time.

Just because a system has 50% winners, doesn`t mean you`ll get a W L W L sequence all the time ( if at all), just look at the graph of coin tosses thread. Unfortunatly probabilities aren`t that neat.

Ultimately, if you want money week in week out, get a job. Most forms of self employment have periods when you don`t make any money, just ask any builder or commission only salesman.
You need cash reserves to see you through losing periods. If you don`t feel you could live this way but still want to trade, you`ll have to try to get a job trading for a bank, which will pay a salary and bonuses if you make a profit.
Steve

PS also remember that most profitable traders don`t write books, offer courses, systems or seminars, they just trade :D
 

chump

Well-known member
Dec 12, 2003
2,212
274
93
112
#3
"Honestly, I have spent the last 3 months reading day and night about how to trade... "

and is this information supposed to be taken that you think this is a reasonable apprenticeship to grow your own money tree ?

step back and think about it logically
 

TWI

Well-known member
Jan 22, 2004
2,516
245
73
London
#4
Of course you can earn a living trading I know plenty of people who do including myself, but it is not an easy route to take. Only worth it if you are totally dedicated and addicted. It is far easier to sit in a job and have somebody else pay you a salary. Sometimes I read about people who have a system that they claim makes them money and they don't have to spend much time looking after it, this has never been the case for me despite spending 10 years in the business. I have always had to work my arris off. It is full on but I certainly cannot think of anything else I would prefer to do to earn my living.
 
Jul 10, 2003
8,395
1,169
223
www.trade2win.com
#5
tysonlbc said:
I wonder if it is even worth pursuing...
Trading isn't a career you choose from a shortlist of possibles.

I'm not going to get into the metaphysical possibility that trading chooses you, but basically, you either have to trade or you don't.

Like anything you do. If you really want to do it - you will. If you're doing something you don't want to do - you'll do it with less than good heart and you'll do it mediocre to badly. You certainly wont enjoy it.

It's the passion for trading (if you have it) that will carry you through the initial periods of losses, and keep you coming back, learning (hopefully) new mistakes to make until you've made all the mistakes we've all made.

I don't know of any shortcut.

It might take you months or years - or never.

But if you are a trader (whether you are trading or not at the moment) a true trader - you will put in the hours without thinking about it, because it is a joy to do so.

I doubt many full-time traders on these boards spends (or spent) as many hours on their previous existence day-jobs as they willingly and joyfully (is that too strong a word?) do on their trading research, education and analysis.

If you need positive feedback to keep you on the path - it's not your path.

If in spite of the obvious casualty rate and effort required and time it's going to take you still want to trade - you're a trader. Just make sure you're a good one!
 
May 7, 2004
5
0
11
ny
#6
Thanks guys... I appreciate the feed back. Dont get me wrong though, I am competley addicted to learning to trade. I work for an electronic trading platform and deal with traders all day. I love everything about it. I see now what you mean by commision only sales people. Ive been one my entire career except for this job. I cant live on a fixed income any more.It sux. All I do is read. I stay in on weekends and just read. I am truly dedicated to learning.

PS.Has anyone heard of Technitrader? I recently recieved their intro DVD. Are they legit? They seem salesy to me.... Thanks again......
 

schoe

Active member
May 22, 2003
343
3
28
Somerset
#7
You can't learn to be good at golf or tennis or computer games from reading, you can read how Tiger Woods developed his swing but at the end of the day the only thing that matters is being able to hit the ball the same way when thousands of people are watching time after time , it is the same with trading only practice makes you perform the same when the pressures on and money is at stake.
 

EK1

Active member
Jul 2, 2003
654
14
28
www.trade2win.com
#8
But if you are a trader (whether you are trading or not at the moment) a true trader - you will put in the hours without thinking about it, because it is a joy to do so.

I doubt many full-time traders on these boards spends (or spent) as many hours on their previous existence day-jobs as they willingly and joyfully (is that too strong a word?) do on their trading research, education and analysis.
Lets get metaphysical!!

The Bramble has said it all. Spot on.

To quote Yoda "do or do not ....there is no try".

Trade or don't trade...it's all or nothing.

EK1
 

oatman

Well-known member
Feb 4, 2003
2,879
22
48
#9
Trade
Don't waste your time on simulation ;)
The quickest way to learn is to do it.
ps. make sure your first trade is a loss
 

neil

Well-known member
Nov 19, 2001
5,169
744
173
#10
Aug 25, 2003
1,535
6
48
Next to the bathroom
#11
I agree with Oatman. Paper trading is a waste of time if you do it for a long period of time. When you trade for real, the feeling is completely different - your emotions are run ragged at times - your blood pressure rises - your nerves are in bits - and you win or lose real money. The stress factor can be overwhelming and consequently the results, when you trade for real, can be very different from the stress free nirvana of simulated trading.

Mr Charts recently posted an equation on a thread here. It goes like this :-

MAXIMUM METHOD + MAXIMUM DISCIPLINE = MINIMUM STRESS

I typed this up in lage bold font and pinned it to the wall directly above my trading screen. It helps me enormously as it is a constant reminder that this game is not easy.

It is a bloody hard slog to get to the point where you can make consistent daily profits but it is a worthwhile slog and ultimately your efforts may well bear fruit.

But don't spend too much time paper trading. You will lull yourself into a false sense of security.
 
Aug 25, 2003
1,535
6
48
Next to the bathroom
#14
It's actually important ,I think, not to make big wins immediately. Otherwise you get overconfident and cocky and think you can beat the market easily. This attitude will lead to disaster.

In my ex employee days this happened to me and if you wish to pm me I will tell you all about my horrific trading experiences when I thought that I was bullet proof.

Needless to say I got well and truly shot
 

grubs50

Active member
Apr 25, 2003
408
0
26
#15
It is not difficult as long as u have self belief, resilience,discipline and a proper understanding of trading, unfortunately in reality these are very difficult qualities to possess in conjunction with each other.
The most important thing is to decide (truthfully to yourself) whether trading is something u think u have a passion 4 or u r just looking 4 a quick buck.