This is incorrect. If trading mistakes always lead to loss of money they would be learned from quickly and rarely repeated. The problem with trading and most types of gambling is that mistakes are not always punished. Often you do stupid things and still win. In the short term that is. In long term those mistakes break your bank.
This is why it is important to focus less on how much we made or lost. It is hard to do, but it is much better and far more useful to analyse your trades interdependent of specific outcome. That is a wining trade is not necessarily a good trade and a losing trade is not necessarily a bad trade. Knowing the difference is very important. And I admit easier said than done
The following user says Thank You to mcteague for this post:
You're so right - just like basketball is totally easy. I'm mean, how hard is it to dribble around a few people and throw ball in a hole? Then you just do that again and again over the course of a game.
Sorry to pick on your post - but I just have to take exception to anyone who thinks trading is "easy". The reality is that it is not easy: due to the structure of markets (zero-sum game among motivated and capable participants) it cannot be easy. Anything that is easy would be done by a larger percentage of the participants and this would remove the "edge" of doing the easy things. It is simply impossible for trading to be easy - it cannot be easy according to the definition of "easy" and the structure of the market. I'm not sure why more people do not get this.
Seek freedom and become captive of your desires. Seek discipline and find your liberty. - Frank Herbert
The following 3 users say Thank You to Surly for this post:
Digging a bit deeper and looking round the corner here:
Even THIS zero game has winners and losers:
The main winners are the casino owners aka brokers - they get the money nearly without risk.
Then as a economist would put it:
Take the 20/80 rule and you have the percentage of winners.
For those who are not used to handle it: There are 20% winning traders who take the money from 80% losing
traders - that easy.
All of the winning traders are staying in the game while the rest is getting out of the game after having
burned from 1 to xx acounts.
But the show must go on... so be prepared to change to the winning team (with the help of futures.io (formerly BMT))
The following user says Thank You to GFIs1 for this post:
But, in the end, I do not believe that one can beat simple S/R. I've been working with my daughter, who wants to learn to trade as a summer project. I have her trading a small microlot account at fxcm. All she knows is what I have shown her - trendlines, support, resistance, highs, lows, prior highs, prior lows, and just a small bit of fibonacci (extensions not retracements).
She wouldn't know a stochastic if it jumped out of her closet or a MACD if it crawled out from under her bed. It has been very much like Rousseau's Emile. She is removed from the influence of all the Grail seekers (among whom I used to count myself) and the sellers of pseudo-grail systems (to whom I have generously contributed thousands of dollars over the years). She knows of no other way to make trade decisions other than what I have shown her - all of which may be found here at TL in my posts. I have nothing to hide and nothing to sell.
So, how is she doing? Well, she started trading live on Friday with $25 in the account. As of this moment, she has a balance of $42.70 - a feat she accomplished by trading 1 microlot/trade, which is worth 10 pennies/tick (that's $0.10/pip for you forex "purists"). She buys breakouts above resistance and shorts breakouts below support. She trails her stops according to the natural stops the market provides. She has an average profit of 59 ticks/trade.
Oh, and did I mention that she is nine years old and just finished the third grade?
The following 2 users say Thank You to iqgod for this post:
Yea, but I'm not trading for a firm. Nobody is paying my rent by giving me a paycheck. Nobody is giving me money and telling me what to do and when. I am all alone with only myself and my computer and my survival for company.
You're a funny man DT. You argue that 10,000 hrs is ridiculous and one can easily learn to trade profitably much sooner. Yet here you tell us that your own path involved a long and apparently frustrating road. You spent a lot of money and a couple of years just spinning your wheels. I assume that was before your wife started to growl. And even then, you continued to spend even more money. I'd have to say, that all sounds like 10,000 hrs to me.
All the best.
The following user says Thank You to Coast for this post: