there are 2 kinds of people out there...one that things that trading is easy, and the other that thinks that trading is hard...I wouldn't know which group the most successful traders fall into but i do know that there are many aspects of the game you have to accept if you are to become successful. The following is a short list of a few i find important:
1. ESID - Every Situation Is Different. Like life, there are no 2nd change opportunities or "i've seen this before" kind of scenario. No 2 situations are the same. This is why you should never feel 100% in any trade. Unlike many other games, you will never get dealt the same cards twice...NEVER! The moment you think differently is the moment the market proves you wrong.
2. There will be MANY missed opportunities. It is part of the game, especially during earnings seasons. Today had many huge 10% moves up or down...and i bet tomorrow will have just as many. Though hard to keep in the emotions of regrets and GREED, it really is best handled with a "live to fight another day" kind of mindset. The more time spent thinking about it is just more time taken away from searching for the next big move. And there will be another big move...there always is...
3. Don't mistake successful traders with intelligent people. The successful ones have 2 things going for them and 2 things only...They are controlling emotions and managing risk. No need to be smart to be profitable...and doesn't mean you are stupid to be unprofitable. Just means you haven't found your style in playing this game.
4. the market always gets even. cockiness is never rewarded and greedy pigs always get slaughtered. smile but don't gloat...the moment you start boasting about your talents, your portfolio will pay the price.
5. trading is boring. not every minute is exciting and for those who "think" otherwise are just afraid to admit the truth. this is a key in finding your own trading strategy. How much time can you sit at the computer watching graphs get created? 6 hours? 5 minutes? once a week? once a month? Figure that out and you'll know what graphs you should trade off of.
6. Negativity surrounds you. For every opinion you have, there is bound to be another millions of traders who are going against you. Once you enter a trade, you'll start to hear opposition from CNBC contributors, bloggers, and also trading friends....Don't believe anything they say...whether right or wrong, give credit to your opinions first...these trader most likely do not trade in the same time frame or with have the same risk tolerance as you...and most people who bother to mention their ideas are opinionizing just for the sake of argument...there is no spine to their conviction...just talk...
7. Success is not measured in dollars...it is not measured by the amount of money you make...success is measured by your consistently and ability to understand the market. Making money off a trade can be 100% luck. And seeing it right, though not a participant with a position can mean more than the guy who made money off the same trade. Credit is given to the traders who remain successful for weeks, months, years and decades...Time will separate the good from the bad from the lucky....
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