The success rate is very low precisely because the overwhelming majority of traders do not use a fully backtested trading system to begin with, simple as that.
I’m sure that’s the case with some traders. I just know from my work traders how much the mindset plays in to their success and how many of us traders have challenges with our mindset. It’s just part of being human!
I hear you, Andrea. And yes, we are all human. But highly successful traders trade with zero emotion. They get a signal from their backtested and profitable system, place their stop - and sometimes the target, if known in advance - and just let the market do its thing. And then, win or lose, they just move on to the next trade, totally unaffected by the outcome of each position. But, again, this type of confidence and almost military discipline can only be gained if the trader is using a thoroughly backested trading system. Otherwise his/her failure, as a trader, is virtually guaranteed.
I totally agree with you. I would just add that most traders will not achieve that level of discipline without dealing with their mindset (issues from past traumas, beliefs, etc.).
No doubt. On that same subject, numerous studies have shown that women are much more disciplined when it's time to cut their losses short! Why? Because they usually leave their ego at the door, and don't even try to "teach" Mr. Market a lesson, something we men struggle with, generally speaking (LOL) Have a pleasant day Andrea.
I think I am a "successful" trader. I make over 100% ROI, annually. I disagree with almost everything in your post. For example, music doesn't work for everyone, and affirmations work for nobody.
While I appreciate the sentiment behind your message, but I do not think it will work normally when it is been said and done.
You want to have multiple streams of income so that unless you are already a successful trader, you are ALWAYS making money. This can be from a job, a gig, part time work, whatever. This way, when you do trade it will not be such a negative to have a losing day since you already made money that day. You also want to have a plan and be disciplined so that you can carry out your plan without emotions. I agree with the other poster that said think that you are trading someone else's money or for a company that told you it does not care if you make or lose money as long as you follow these rules that have an edge. If you are trading 2 contracts, your plan could be to take a small loss or win on the 1st contract, then look for a bigger win on the 2nd contract. This might be a better strategy than doing 1 contract and then averaging down if the trade goes against you and then taking a big loss if multiple contracts are stopped out.
%% Good . DR Van Tharp interview in Jack Schwager Top Traders book is good also. Plenty of businesses do not make money\ but some do. Especially if they dont want to work for someone else..................................................................................................................,.
Hey that’s exactly how I trade! Nice! And yeah I’ve got plenty of daddy issues. I’ve also been abused by most of the women in my life. Kinda going through a quarter-life crisis right now. Some days I even have a mental breakdown and start crying. But I never let my emotions affect my trading or override my tested systems. In fact, I try to avoid trading as much as possible. I only check my PnL sparingly, maybe if I'm curious how I'm doing at the end of the week. Before bed, I usually just take a minute to check that my orders were placed according to my systems, then just walk away and don't look at it again until it comes time to place orders the next day lol.