Why is trading so difficult?

Discussion in 'Trading' started by padutrader, May 7, 2018.

  1. It is simple if you follow your plan, and it is difficult because most don’t follow rules or don’t know how to trade.
     
    #311     Jun 6, 2018
    treeman likes this.
  2. davelm

    davelm

    I can totally agree with you.
     
    #312     Jun 6, 2018
  3. TA is developed by pros that make money on selling a service. They over complicate things to make them appear valuable earning their high fees.
     
    #313     Jun 6, 2018
    padutrader likes this.
  4. GotherL

    GotherL

    Depends what kinda demo/simulator you were using? Most of them do not take into account commission. (Maybe even leaving out the bid/ask spread.) So if you traded a ton and made money that might translate to a loss instead on a live account when commissions start piling up.
     
    Last edited: Jun 7, 2018
    #314     Jun 7, 2018
  5. Because most people have unrealistic expectations of what forex might possibly hold for them. They hear a few success stories and think forex is an easy peasy thing. Then they get overconfident and don’t employ any trading plans or money management plans. It is a vast and highly volatile market. To think that trading is straightaway easy is not advisable for anyone. Only after you have accumulated enough knowledge and experience will it start feeling easier.
     
    #315     Jun 29, 2018
    CSEtrader likes this.
  6. legionx

    legionx

    Trading is just the tip of the iceberg. What comes with it would be the difficult part: egos, overconfident, joy, sadness, shamefulness, etc; Money-management: setting a Personal Stop Loss Limit Per Day, what % of profits are you willing to lose before stopping for that day, set lot sizes vs variable lot sizes per trade etc. Hope this helps :).
     
    #316     Jun 30, 2018
    CSEtrader likes this.
  7. smallfil

    smallfil

    Teaching someone new to trading the mechanics of trading is pretty simple enough and they could grasp it in a few minutes. Say, trend following buy the new high on stock XYZ for instance. If the previous high was $50.00, as soon as it hits $50.01, you buy the stock. However, the other parts of the trading system like risk management, management of the trade or position, trade selection, exit rules need to be learned. People's biases will prevent them from following a trading system and being disciplined enough to execute it! So, what do you do? Develop your own trading system based on your strengths, your biases, your trading abilities. There are multiple ways to make monies in the stockmarket. You have successful day traders, swing traders, position traders, scalpers, etc. You have to find your niche and stick to it! And when have developed a trading system, test it in the stockmarket itself by placing small, insignificant trades to see if it can work, backtest it. You have to have an edge like the casinos in Las Vegas.
     
    #317     Jun 30, 2018
    CSEtrader likes this.
  8. smallfil

    smallfil

    You got that right. Some selling trading systems give you their settings on indicators with the promise you will make millions after charging you thousands. Those indicators are free in most charts. And the settings, you can actually, use the default settings and probably, work as good!
     
    #318     Jun 30, 2018
  9. Their secret indicators are 50% accurate at best. I've taken a promoters indicators and programmed them to his delight and approval. Back testing results look great until market turned. Then modified my programs buy instruction to sell, and sell to buy. Depending on market conditions it did better. He stopped talking to me. He's still out there at money shows and conferences promoting his snake oil. I definitely learnt a lesson and trust only myself.
     
    Last edited: Jun 30, 2018
    #319     Jun 30, 2018
  10. smallfil

    smallfil

    There are some half decent ones out there that use stockcharts of past years on the same stock and look for patterns and trade those. Now, that is intriguing and may work to a degree. Of course, it is not going to be 100% accurate. Still more decent than majority of stock system sellers peddling garbage. That one takes advantage of a stock trading high or low at certain times of a given year. Industries have cycles so that, would make more sense.
     
    #320     Jun 30, 2018