Why is trading so hard and there are still many people who want to pursue and conquer?

09/11/2024 Admin 6 min read

Questions from John9999

I am looking for sincere answers. I don’t care what experts and system sellers say.

Trading is very difficult, very very difficult!

I am also not a newcomer, having entered the market for 7 years with serious effort and learning with trading.

Anyone who says otherwise is new or trying to sell you something.

I think the biggest reason is that our emotions hinder the implementation of our strategy.

The idea to make things easier is: Only trade for the first 3 hours of the day.

How about you? What do you think makes trading difficult? And what is your best idea to make it easier?

And here are some outstanding answers

From Robert Morse

Most transactions, except those with arabrage strategy (price difference), try to predict the future based on past and present data.

You are then making the assumption that what happened in the past will repeat that model in the same amount of time that happened before.

The problem is: The future is unpredictable.

You cannot always be right and the past does not repeat the same way all the time.

You need to find a bland process that uses the past to be more right and more wrong and manage your risk, to continue right again.

That requires good information, a good process to use that data, discipline and enough money to go wrong. Too many traders don’t have enough of each to succeed.

Trading is difficult because sometimes, although you make transactions perfectly in the next 10, 20, 50 or even 100 transactions, you still can’t make any money. Even if you control your emotions perfectly, after more than 50 transactions, there are times when you still don’t make a profit.

After all, you have complete control of the timing of the order, but the new market is the deciding factor whether the order is profitable or not. At times, the next 50 transactions will bring money back, but there are times when you’re lucky enough to be at a loss.

As a leader, sometimes you face extremely negative periods for a long time, and you can do nothing but be able to trade on a smaller scale.

From TheBigShort

The first reason is because the market has a finite amount of money. You cannot make money from the market, it must come from someone else’s pocket (unless you are investing in the retained earnings of the business).

Then you need to think about how the market grows. Smart people will make money and grow, while less intelligent people will be disqualified. So you are trading in an environment controlled by the smartest people or computers.

Finally, by reading many comments on this page, I noticed that people were trying to ski with a skateboard. Of course, that would be very difficult!

You should not trade in an environment or with a strategy where you do not have the right tools. A lot of people want to be day trader but use tools / ideas from the 1970s.

Imagine you do electrical work in a house with just a screwdriver, while others use modern wireless drills. The screwdriver user will think: “Well, this is hard,” while the wireless drill user has finished his second home, and probably with his second wife (and beautiful much more).

P/S: Emotions are outdated, I think that’s the least important issue of modern traders.

From PistolPete

Positive thinking comes from positive expectations. Most people think their problem is emotional. Lose will certainly be emotional.

But I think the problem of many people is that they don’t have a proven and repeatable rule-based trading advantage.

You may not need Mark Douglas, but you probably need some kind of systematic, quantitative-based coach.

Math!

Every trader, whether new or experienced, should read Daniel Kahneman’s “Thinking, Fast and Slow”. You need to know in advance what you will do before it happens. Logical thinking during stress is very difficult. All important decisions should not be made in a state of stress.

Know what you will do under a specific situation before it happens, act like a machine without bias or prejudice. Fear and anger have no place in trading.

So why is trading difficult but many people still want to pursue and conquer it?

Although trading is difficult and challenging, it still attracts a lot of people. There are three main reasons for this appeal:

first. Ability to make a big profit

Financial markets, if grasped at the right time and strategy, offer high profit-making potential. The resounding success stories from the top treaders are a powerful source of motivation, making many people want to try their best in this environment.

2. Financial freedom and job autonomy

Trading gives trader the freedom to manage his time and life. No need to work with office hours or under someone else’s authority, the trader can make its own decisions and make a living from job independence.

3. The appeal of the challenge

For some, the complexity and challenge of trading is the factor that drives them to pursue it. They want to overcome their limits, control the market and win in a harsh competitive environment.

Conclude

Although trading is a difficult path, requiring discipline, knowledge and patience, it still attracts countless people with promises of financial freedom and the ability to control life.

For many, trading is not only a career but also a challenge to overcome your limits. The complexity of the market, the competitiveness and the high profit potential make many people determined to pursue, knowing that this is an arduous journey.

Trading is difficult, but it is that difficulty that creates attraction. Those who succeed in the profession not only conquer the market, but also conquer themselves, and that is why many people are constantly pursuing the dream of becoming a professional treader.

So what about you?