The growth of a trader is an exhausting journey. The market hits all the technical and psychological weaknesses we have one by one. It causes losses and painful emotions. It’s not easy to become profitable trader for suer!
By technical unpreparedness, I mean a broader preparation for trading: in particular, for managing the sudden situations that can occur in the market. Most traders start by focusing on the promise that the markets make and neither want to nor know how to or think it is important: that the markets can take any money quickly.
That’s usually the first painful lesson. And after it comes the next ones, except that a very large number of them are…in my opinion, unnecessary. Especially the most painful ones, because they can break any trader’s career.
Lack of preparation leads to losses and psychological pain, which depending on the situation may lead to attempts of revenge trading from where it is a direct way to even greater losses and margin calls.
The solution is: proper preparation.
1 Like
I always read your posts and you usually hit the nail on the head not sure about this one though, your scraping the barrel abit
2 Likes
You listed one rule, but the title says “rules”.
Is there another one?
I’m not sure I would call preparation a rule, as much a general principle.
Do you have a list of rules?
2 Likes
We are trading in difficult times. I would surmise that most traders today have never experienced a bearish stock market that has a knock-on effect with the FX market. Economic inflation by major governments boil down to daily currency strengths and weaknesses, depending on the key news reports.
As such, order flow is topsy-turvey, which in turn moves price up and down, and the poor retail traders like us find themselves wondering what it is all about.
Proper preparation is to focus on process, and aiming for positive probability to be on the right side of the market movement. Trading the higher TF’s would be recommended. Patience and discipline, and strong emotional management are critical in riding the waves.
I hope that helps.
2 Likes