The last few months have brought the high-flying new traders down to Earth.
If the market has been beating you up lately, this blog will help you get back on track.
People are realizing that trading is not easy. If it was, why would anyone work a regular job?
You need to have realistic expectations to give yourself the best odds of success. If you’re a new or struggling trader, these trading truths will help you under the reality of what it takes to become a successful trader:
There is No Holy Grail Strategy
Stop chasing for that holy grail strategy. Every trader is different. Some traders are better suited to certain styles. You need to figure out which style you execute best as soon as possible, and eliminate everything that’s not working.
Stop Following
We are honest about this with all of our students. Here’s why following alerts doesn’t work:
You don’t know their trading plan, their risk, or their trade thesis. You won’t have the conviction to correctly manage the trade cause it’s not your own idea. Alerts are useful to learn a trader’s thought process but are not meant to be blindly followed.
Good Trade Ideas Are Not Enough
Picking the right stocks matters less than you think. If you don’t have trade management, you won’t be able to actually make money off your trade ideas.
Trying More Strategies Won’t Make You More Money
Find a niche and dominate it. In trading, you cannot spread yourself thin. The first step to consistent profitability is mastering one strategy.
Big Trading Losses Take Time to Make Back
Risk management is not optional if you want to become consistently profitable. Look how much big trading losses set you back. It takes time to make these losses back, you need to be patient, and manage risk aggressively in every trade.
Learning To Trade Takes Time
Come into this with the right expectations. It will take hard work and persistence. But a lifetime of freedom is worth the price.
Most Traders Fail
this is true of everything in life: Most people are not in great shape. Most people do not have healthy relationships. Most people don’t own successful businesses. Only a select minority achieves the most-saught after results in life. Trading is no different. You need to have patience, dedication, and persistence to achieve consistent profitability.
