A very interesting diagram and blurb that Newbie Traders starting down the path of financial entanglement… sorry… enlightenment should take note of…
The following small excerpt was “borrowed” from a Traders Blog, a Software Engineer that had been developing Machine Learning and Binomial EA’s… before finally realising that Financial Markets aren’t what he thought… Enjoy.
Trading seems like a difficult task for most people, which requires training and financial education as a prerequisite. The truth is people act as traders each and every day without even noticing. You go to the supermarket to buy stuff. Here is your market (exchange). Prices are your bid-ask-spreads (level 1). You can only buy (ask), but the supplier can also sell (bid). The supply at the back of the supermarket is level 2. The cashier is your order-book. Now extrapolate it to everything you buy or sell, it’s all trading, everybody is a day trader.
Some Smart Hindsight
*People will tell you what should have been done constantly. Every mistake you make will be followed by someone telling you it could have been avoided. Your family, friends and colleagues will doubt you, your alpha, your skills and your ideas. It seems like Robert Kiyosaki was extremely right: people are too afraid to try stuff, so it’s always easier to evaluate somebody else, instead of doing it. Most of the time you will be discouraged by your surrounding environment: from trolls on social media to possible investors, everybody thinks it’s easy, and they can do that, but then again they are just watching and mastering the art of hindsight. Follow your instincts and gut feeling, you are in the arena, fighting the battle…
Don’t get mislead by the spectators…
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Wow, frank perceptive. Really appreciate that. And as per the online trading stuff, still many people doesn’t show faith in them. But may be in Future they will, who knows!
That really gave me an interesting insight about how trading work. Good sharing
As early as now, it’s obvious that fx is certainly not for the faint hearted. But I hope I don’t get trapped in this. Thanks for sharing.
Traders doom is a cycle of your full-time trading career where you will have ups and downs. It is a cycle where traders start in Forex by making money. They are new traders in Forex and they begin to place good trades. They are always analyzing the market, they are knowing the market information to know if the market is going to be volatile, they are also knowing the other traders. And it is better to make a profit by trading as much as possible, but if you lose, all the balance is gone. You can easily avoid falling into this trader’s doom if you do not become overconfident. You have to manage discipline all the time and never trade overtime because over trading is a sign of loss.
Ooh that quote hits different:
The more we sacrifice for something, the stronger our belief in it.
This is why it’s important to constantly do self-reflection to make sure you’re not too far down whatever you’ve put a lot of your time and energy into.
“What could have been done?” is always easier to answer than “What should be done?”. Everything looks clear in hindsight.
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This is consistent with my least favourite expression from politicians after ugly events. “We need to ensure that this sort of thing can never happen again”. A sad reminder of how futile this is is Grenfell disaster. Grenfell Tower: What happened - BBC News
The article is more than useful, thank you for sharing it with us) It seems to me that we’ve all been through this cycle, it’s as part of the training of the trading business. But the sooner a trader understands that there is a way out, the sooner he/she will become a professional. I know that’s a big word in trading, but I couldn’t find anything better ![:slight_smile: :slight_smile:](https://f.bpcdn.co/images/emoji/twitter/slight_smile.png?v=9)
I like that on this forum we really discusses a variety of topics, it helps us to grow as traders.
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You have given me a new perspective. I had no idea about something like that. There’s always something to learn. However, I would still like to believe that very disciplined traders will not necessarily fall in this trap.