Trading is challenging. Many are drawn to trading, but few last very long. It’s difficult to face the cold, hard fact that trading is difficult. Many novice traders need to win. They are hoping that the huge profits they make trading will solve many problems in their lives. And thus, the idea that one is more likely to continually face a series of losses is discouraging. To cope with such a displeasing idea, many novice traders avoid facing the facts. They engage in denial. They avoid looking closely at the facts for fear that they will see something that they don’t want to see. But to become a seasoned, profitable trader, one must take an honest look at the facts.
There’s no reason not to. The facts, no matter how unpleasant, are usually quite easy to overcome, if enough thought and persistence are devoted to overcoming obstacles. It’s essential to be realistic when it comes to your expectations. Many novice traders are unrealistic in that they think trading is much easier than it actually is. They think that they can trade in their spare time as if it were a hobby. They think trading is easy money. But if you talk to profitable traders, they will tell you that trading isn’t easy money. It seems as if the minute one stumbles upon a winning trading strategy, it stops working.
Perhaps market conditions change, or maybe so many other traders have discovered the method, and are using it that it no longer works. Whatever the reason, trading is so difficult that you can’t make the mistake of assuming that you can master it overnight, or that once you’ve achieved early success, you can maintain it over the long haul. One has to be continually trying to gain more knowledge, gain more experience, and hone one’s trading skills. Trading demands a substantial amount of time and effort. And unless you are willing to commit enough time and effort, you’ll never become a consistently profitable trader.
Many of the best traders spend several hours a day just looking for new trading ideas or opportunities. It’s also important to be aware of any media coverage that may impact the market action, and potential significant events, such as earnings reports or impending rate hikes that may also influence prices. It’s not necessary to become a workaholic, but it is vital to take trading seriously enough that you put in the proper amount of effort to find opportunities and be able to take advantage of them when you get the chance. Many failed traders, however, aren’t aware of how much time and effort a winning trader devotes to this business.
It is essential to face the cold, hard facts about how to become a successful trader. Don’t underestimate the time and effort required to become a consistently profitable trader. Although it is often difficult to face unpleasant facts, doing so is always to one’s advantage.