Trading is not a game. It involves a lot of effort, discipline, time, patience and a strong will to continue no matter the outcome. It is a lengthy process where finally a novice trader is transformed into a successful professional trader. Rather, it is a journey that commences with enthusiasm, excitement, and gusto but which ends either in success, wealth and a sense of fulfillment or in failure, financial loss, and disaster.
The trading journey commences when one makes up his mind to take to trading for financial success. He has no knowledge about the nuances of the market but is attracted to the glitz, the glamour and the wealth the financial markets have to offer. He is enthralled by the flow of money that exchanges hands every day and is enticed by its sheer sophistication. Thus lured and completely intoxicated, he begins his journey towards unlocking the coffers of wealth the markets possess.
He begins to gather information in order to understand things better. He reads books on the subject matter, surfs the internet for articles and videos and talks to a lot of people associated with the markets. He conducts studies and sits for hours in front of his computer trying to watch for patterns, structures, and incidences. There comes a time then when he observes a particular pattern or incident which is repetitive and occurs periodically. Armed with this new knowledge he jumps into a trade only to find out after a loss that the pattern did not work out. He once again withdraws makes a few more observations and attempts the same again only to fail once more. He keeps trying and keeps failing. Every time he observes the pattern without any direct involvement it gives successful results and the moment he tries to involve himself and takes a trade the pattern for some mysterious reason fails. Utterly frustrated he decides that this is not his cup of tea and maybe it would be a better idea to stay away from such hypocrisy!
But somewhere within himself, his conscience gnaws at him. He looks around only to find people who have achieved success with the markets. How do they do it is the next question he asks himself. There must be away! If only somebody would teach him!!!!
He searches high and low for that one teacher who can show him how it is done; that one mentor who will hold his hand and lead him through this financial jungle. Is there anybody?
After a little search, he finally finds a mentor who will guide him through and show him how to tread the path-how to achieve his dreams.
His enthusiasm rejuvenated, he learns various skills and techniques and tries to implement them. His armament now includes various technical indicators, oscillators, calculators, ratios and what have you. He walks the path with his chest puffed up and his head held high. Success has arrived at last. In his bouquet of failures now bloom a few flowers of success. He realizes his mistakes and tries to overcome them. He makes gains only to lose them. He makes losses and is unable to cover them. Yet he is happy and content. His mind is inattentive to the losses he has incurred for he has also made some gains and is sure he will win back whatever he has lost.
His charts are cramped with indicators and oscillators and his mind is frozen. The indicators conflict amongst themselves where one says buy and the other says sell. In his attempt to find the holy-grail he is now entrapped in this maze of conflicting parameters.
The more he struggles to find a way out the more lost he gets. Wrong decisions, wrong entry points, wide stop losses, too big a position size all result in big losses. As he stares at the number of his losses a deep sinking feeling overpowers him.
Depressed and defeated he talks to himself. He was wrong all along he thinks and maybe he does not have what it takes. He is not as clever and intelligent as those other traders who make money in the markets. He tried his best and yet only managed to lose all his hard-earned money. His trading capital is now nearing zero. It is time to call it a day. It’s time to quit!!!!!
At this point, most of the aspiring traders end their journey. They give up. Little do they realize that success is just around the corner. They just need to have a change of perception. They have worked very hard. They have spent a great deal of time and money in learning the skills and techniques of trading. Should they just throw it all?
So what happens when the dejected aspiring trader refuses to quit. He goes into a long sabbatical from trading at looks back upon his journey till now. He ponders deep and tries to identify his mistakes. He begins to realize that there were so many things he should and shouldn’t have done at all.
And then the nickel drops.
The bulb lights up.
The successful trader has arrived.
And this time to stay.
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