I completely agree. That's a comment I've heard over and over again so I take it very seriously. I should note that when all this studying is over, the first step I'll take is to trade a very small account very conservatively so I can get that feel you're talking about. The more success I have, the larger the account I'll trade. If I ever feel outmatched, I plan to scale back. But I understand it's a different story when money's on the line.
Trading is simple, but it is not easy. It is a natural dysfunctional inclination for humans to take something simple and make it difficult.
as a new trader and as an experienced trader you never want to take on too much risk. the best trades are high confidence, low to zero risk, and high reward. backtesting stuff can be fun but i don't think it will yield anything worthwhile. it might lead you down a road where you think about a situation differently but i don't think it will yield much money. maybe some people have found good stuff but i think a lot is played out. it would be interesting to do some fundamental backtesting but i dunno if that is possible without doing a ton of work...eg. shorting companies that issue big one time dividends thru debt. i remember DPZ did that and they go whacked after the div was issued. just thinking out loud and kind of giving you an idea how diverse things can get in the market. anyhow...for me the best "testing" i did was testing myself and seeing how my results were and what i was best at.
If you focus from the very beginning on not losing you will have a much steeper learning curve. If you listen to advices like it takes x months or x years you will compare yourself with others or their claims how they got there (did they really?). And where are they now? Perfect traders who dont make mistakes? Are they to be copied/cloned? You will make your mistakes and have to find out how to solve them. Find your way alone and dont look left or right. Read, study and maintain other topics in your life beside trading giving you the appropriate balance to succeed. It is not about money or winning in the end but about doing the right things at the right time like everything else you are doing.
well, nothing is so easy in life. if what you said were true (trading is so easy), then no one needs to go to work. everyone would stay at home to trade and everyone would be a millionaire. be careful... don't ever think trading is too easy, overconfidence might cause you big losses in the future.
Trading is the hardest business out there. 80% have to pay the 20%. All that writing at the beginning is easy to realize. The problem is that you will end up in situations where you think you are the sniper when in fact you are the snipee. When you realize it, and change your mind, the market goes the other way, and again you become the snipee while thinking you are now a sniper. I am talking making thousands of trades here, so that what I describe can happen (if you get to 1000s of trades). Do not under-estimate your opposition! You need to think deeply about trading and about yourself. Markets look easy once you have thought deeply enough and understood youself and human nature. You will make money when you have an edge, and also when you reach the point where your trades are essentially following the market a large percentage of the time.
First you need to learn the game, then it's not hard. After 1 year you have no profit move on. Unless mom and dad still bring you milk and cookies don't waste your life.
"Listen, here's the thing. If you can't spot the sucker in the first half hour at the table, then you ARE the sucker." ----- "Never insult seven men in a bar when you only have a six shooter."