You are currently viewing Simple truths about trading that you can use to your advantage

Simple truths about trading that you can use to your advantage

great_plan-cartoonThe other day I sent you an brief email outlining the 5 simple steps to win at trading and avoid losing money (you can read it here)

Understandably, a handful of traders replied asking basically the same question as I got from one person in particular

“Brian, seriously, can winning at trading really can be this straightforward?

I’ve been been at this for years and still haven’t been able to make it work.  In fact I’ve lost more than I care to recall.

I’m not stupid nor am I afraid of putting forth effort.  It just seems SO incredibly difficult to actually make money and keep it as a trader.  I find it hard to believe that it really can be this simple and straightforward to win and avoid losing money.”

If you’re skeptical too, here are a few truths about trading that will help you understand why it really can be this straightforward to win at trading and avoid losing money, but so many don’t

  1. Trading appears very simple on the surface, so it is all too easy for a person of above average intelligence to very quickly understand how things work

    This causes most people to under-estimate the challenge in front of them

    They think they fully understand all that is needed, and so their mind closes to learning more or often even to seeking out further learning regarding skills

    They are easily led to believe (by those selling systems) that all you need is a ‘good system’ and the discipline to stick to it and you’re set for your “Happily ever after”

  2. There is uncertainty in the markets, that’s true, but there is also an underlying order

    That’s why the charts look like they do instead of random scatter plots with the dots all over the place

  3. Human nature doesn’t change

    Within the charts, there are also repeating patterns of price movement because the charts show the emotional response patterns of the mass group of people that make up the markets

    Unless interrupted by an event triggering a new emotional response, these emotional response patterns will usually play out

    This is where your advantage as a trader presents itself:  by having a method to correctly identify the beginning of a known emotional response pattern, you have the opportunity to get into the market knowing what is likely to happen

    This allows you to operate within a period of time when the level of uncertainty is low – because you are intentionally in the midst of a KNOWN emotional response pattern

  4. The activity of trading is not a one-time event – it is a process that is repeated again and again over time

    Your success will be largely determined by your ability to correctly recognize the beginnings of known response patterns in a timely manner, to take the appropriate action within the window of opportunity, and to respond accordingly as the pattern plays out or not

    This is where having a properly defined and documented system is so absolutely vital – it is your daily guide for executing trades – it is your reference point to ensure that you can execute consistently – this is the foundation of consistent results

  5. If your system is NOT properly defined and documented, you are introducing variables to your trading that only work against you

    If your system is lacking any of the necessary qualities to be highly repeatable, you are likely to have a very difficult time responding correctly – and consistently – to what is going on in the market

    Now what you do on any given trade won’t always be the same, but how you decide to respond to the different things that can happen during a trade DOES need to be consistent

    This is why it is so critical to know how to evaluate a system – for repeatability and functionality –  and fix any issues that it may have

  6. Only when you have a properly defined and documented system – when it is repeatable – only then can you know what to expect with your system

    When your results become repeatable, they then also become measurable

  7. This is where having the skill set of knowing how to properly test and analyze your system is so critical and necessary for confident trading

    I see lots of traders that know the value of testing things out, but they don’t know how to do it properly – and then wonder why they’re still not making money and why their real-time results don’t match up with their back test results

    You can begin to have confidence and security with your trading when you know HOW to properly go about the testing and when you fully understand the results and what they tell you – and what they aren’t telling you

    This is because now you can have KNOWING instead of DOUBT with your system, because you now have realistic expectations and fully understand how reliable it is

    Only when you have repeatable and measurable results with a properly defined system can you have the confidence to comfortably stick to your system, to take the right actions at the right time – without it being a huge emotional situation

One really great thing about all of the above, is that you can attend to all of this in a sim account, where you have zero capital at risk – avoiding losing money

When it comes time for trading with real money, you are going into it with a rock-solid foundation, and operating from a position of well-supported confidence and KNOWING

You’ve acquired the skill sets and process to prove everything out, and you’ve proven it out with your own hands – no more hoping and living with doubt and anxiety, feeling subject to the whims of the markets

You enjoy peace of mind and security because you know that you’re okay regardless of what the markets do

The Question You Should Be Asking

I get questions from traders on a regular basis, and they are usually asking things like, “Should I buy this {whatever it is} trading system?” or “How can I be more disciplined?” or “Where can I find a good system?”or “where can I find a good broker?”

These are all valid questions, but…

… these aren’t the RIGHT questions to actually move the needle

The question you should be asking is:

How much is it costing you to continue going about your trading the way you have been?

Or put in a more positive perspective, how much should your trading be making when you get it working right, and how will that affect your future?

When you factor in the compounding effect of growing your account, you’d probably be very surprised and how big the number is when you look out only a few years

Time truly IS money

… and the longer it takes for you to get your trading running right, the less will be in your account a year from now and 3 years from now

By getting your trading working right NOW versus farting around for another year (it’s amazing how fast time flies when you’re trading ISN’T working), even if you’re working with only a $10,000 account right now, a year delay can mean a difference in the balance of $160,000 in just 5 years

You can get things turned around with a proven process and get your trading working right NOW and with ZERO risk

And we can make it happen in less than 30 days

This is my desire for you

I’ve been teaching traders HOW to do this for over 8 years with this particular skill set and this process

If you want to acquire this skill set and process for yourself, then I invite you to click here

If you are indeed serious about making your trading a success, persist in your pursuit of becoming a better trader, not just chasing systems.

As you become better, winning at trading will become easier

Cheers

Brian