This week’s question was inspired by Dr. Pipslow article:
Here are some the 5 uncomfortable truths he listed:
1. It takes money to make money. 2. You have to be where the action is. 3. You’re going to be wrong. A lot. 4. There’s no holy grail in trading. 5. Trading is NOT for everyone.
Is there anything he missed or anything you 110% agree with?
Other than these I think something big would be, No matter how experienced you are, no matter how many years you have under you, You are gonna have bad days. So be prepared for rainy days. Diversify, Diversify, Diversify…
True. I think the degree to which we can consistently yield profits from trading is directly correlated to our ability to persevere and learn from our mistakes.
Trading really is simple, but so difficult. I think a huge impedement is the psychology.
If one person can profit with a strategy, while another consistently loses with it, what’s the difference between the two?
Perhaps it’s not the strategy alone that makes the trader. It’s just a series of judgement calls.
For me, and everyone else I suppose, my profits are only limited by my ability to learn from my mistakes. That’s not a degree from college.
No news network, youtube channel, or book can give me the ability to learn from my mistakes. They can help point me in the right direction, but when it comes time to take a trade or not, I have to make the decision on my own.
Sure, trading’s not for everyone. But the thing seperating me from consistent profits is just me.
Really like the one about there being no ‘Holu Grail’ thing is thats actually a good thing it means you can make money in so many ways if you do it right
Trading is just one of tools for making money.
For all learners, penny traders building up a diversified portfolio may be better option in the long run. When you start learning trading you never know IF you will be ever profitable and when it may happen (another sad truth). Investing 100% time and money in trading is a risky decision. On the other hand building a strong portfolio with stocks, ETFs and/or other inv funds may become an almost unattended vehicle (with little tweaking from time to time and with long term horizon). Keep eyes on the goal and be sure game does not become more important than the score
Perhaps one of the hardest “Uncomfortable Truths” to swallow is that:
“I am my own worst enemy”
The market is not to blame, nor are the brokers (except scams), nor are other traders, nor are the institutions, nor are the educators or even the YT publishers.
Ultimately, the only person who makes my trade decisions is…me!
Trading is not hard to learn and not hard to do - technically. So finding and learning a strategy is not hard. Executing it is not hard.
The difficulty comes from our own brains. Its hard to risk failure. Its hard to lose money. Its hard to follow rules perfectly every time, when your right brain is saying this feels wrong. Its hard to run a strategy again and again for years.