5 Reasons Why You Still Suck At Trading

5 Reasons Why You Still Suck At Trading

Before you read this article, I want to put a few disclaimers up front so that no one gets upset and offended by what I am about to say.

a) This article serves as self-reflection. It doesn’t mean that I am a better trader than you – it just highlight the points of how you can improve yourself.

b) This article is a reflection of where I was 3 years ago. Unless you accept all these facts and fix it, you really cannot become a better trader.

c) You will learn a lot from this article. Just don’t personalize it and think of it as my trading journey being shared with you.

d) Having said that, this article reflects traders we have trained, people we have met and people on Facebook that are self-proclaimed traders.

 

So let’s start.

How long have you been trading? Have you seen an improvement in your trading over the time period that you have been trading? Remember this doesn’t mean that you have to be making big money now. This is the biggest misconception as a part time trader that you need to be making it big after a few years in the market. I am talking about your risk control, money management and your trading mindset. I think good traders became really profitable after about 10 years in the market which means you have a long way to go.

I am going to outline 5 points that you need to change immediately if you want to start trading well and avoid the feeling of going to sleep with a lump in your throat. You need to be able to sleep easy with your open trades and not wake up sweating in the middle of the night.

1. YOU THINK STOP LOSSES ARE NOT NEEDED IN TRADING

I always tell our clients that stop losses are like vaccinations. For those of you that have kids, you will ensure they are vaccinated on time without fail. Don’t your kids grimace with pain when they get jabbed? However we still go ahead with it since we know it is for their long term protection.

Stop losses are exactly the same. You need to take a loss at a predetermined level to avoid long term pain. A small 1% loss per trade will not hurt you even if you have 10 consecutive losses, but one single trade without a stop loss can wipe out your account. So start using stop losses immediately. Don’t live in hope that the market will turn your way as it usually does not or you will run out of patience waiting for your level to come back.

 

2. YOU LACK DISCIPLINE

Want a good body? Stop eating junk food and exercise. Want a promotion? Do something outside your job scope to impress your boss. All these take TIME and it has to be done consistently for years. It is very easy to lose focus if you don’t have your long term goal in view.

If you want to succeed at something, you must have discipline. The same applies for trading. You need to have a plan for trading. Every weekend without fail I will analyze the charts for about 2 hours. This has become my Saturday morning routine. I wake up around 7 a.m to ensure I see the charts when they are not moving and make a plan for my trades the following week.

I set alerts on Formation Seeker for any patterns that show up on the 15 minute chart. Once I get alerted I will observe the charts for a trigger and enter or skip the trade. Position size is calculated along with targets and stop losses. If the trade moves in my favour I update my stop loss. All this is mechanical and unemotional because of the discipline I have built into my system over the last 3 years.

When we hired K as our signal specialist it was not because he was the best trader we had. (Maybe he is but that wasn’t his stand out trait) He was the most disciplined. He wakes up at 6 a.m every morning and meditates for 30 minutes. Then he looks at charts at 30 minutes, releases the signals and goes to work. Some people complain the signals come too early in the morning. Doesn’t that show that you are not disciplined even for a simple thing like that?

So start getting your discipline together. Start slow but do it consistently else you are going to go nowhere with your trading career.

3. YOU ARE NOT SERIOUS ABOUT TRADING

Trading is serious business. You are playing in the same field as the best traders in the world and the major financial players that make your 100K account look like peanuts. So if you are going to put your money in the market, you better be serious about it and understand the repercussions of not trading well.

What does a serious trader do from someone that is flirting around with the market? It firstly goes back to discipline in Point number 2. Next is constant improvement. I don’t think anyone will ever become a perfect trader in our lives but there is always room for improvement.

Tell yourself that this is a career you see yourself prospering in 10 years’ time. To get to that level you need to get serious from today. Make the changes to your lifestyle that reflects that you are a serious trader. Stop browsing Facebook for 30 minutes a day and use it to look at charts! Here is a nice analogy using our friend Be like Bill.

 

 

Bill is a serious trader

Bill is disciplined to look at charts every day a fixed time.

Bill is constantly looking to improve his trading by reflecting on his trades instead of finding faults with other trading methodologies

Bill sticks to his strategy even when things go bad as he believes in himself

Bill doesn’t waste time browsing Facebook and posting charts of trades that already happened to show he is an expert

BE LIKE BILL

 

4. YOU HAVE NO CONSISTENT STRATEGY

The only way to understand your trading performance is to follow a consistent strategy for about 6 months. There are a few reasons for this.

1) Any trading method has losses and you never know when it will hit you. If you are changing strategies after 1 month, you may have been using a great strategy but just got hit with a string of losses.

2) If you mix and match strategies you cannot evaluate the effectiveness of your trading method as it is so hard to track.

3) You cannot fine tune your method for better success if you have no idea what you are tracking

Take a look at our trading track record. We are perhaps the only firm that has a live account for monitoring. Look at the first two months. We really messed up due to pending orders and kept making repeated mistakes. After really taking a hard look at our record, we made changes to be more patient and look for further confirmation before taking the trade.

What can you learn from this? A serious trader doesn’t change strategies every 1 month. They are looking for constant improvements to their strategy and never stop at perfecting their game.

 

5. YOU GET  DISCOURAGED EASILY

Trading isn’t easy and you must expect a tough battle with your inner demons. A great trader conquers fear, greed, aggressiveness, indecision and these are not taught in any book. It is something that you have to build up internally by focusing on your goals. You also need to be very strong headed because you are going to get knocked down many times along the way.

“It doesn’t matter how many times you get knocked down as long you get up again”.

Don’t let anyone dictate to you what you can or cannot do. This not only applies to trading but into real life as well. When I came to study in Singapore 18 years ago, I started with nothing. The only thing I had going for myself was determination and a strong desire to succeed at whatever I do in life. Now that I have conquered my full time career and reached where I want to be well ahead of time, I will focus a lot more on trading from 2016 onwards.

Trading with consistency is a journey but we are not going to stop until we are the number 1 trading platform in Asia.  There are challenges but our goal is intact and solutions will be implemented as long as we stay agile and flexible like the water.  The same thing should apply to you. You can succeed at trading if you believe in yourself and don’t get discouraged and take the market personally.

I hope this article has helped you see trading in a different light. We have provided this opportunity to mirror our trades at www.qooaims.com under Leisure Signal Provider.  You can adjust your lots sizes, input your own stop losses or exit point or simply add in trades from our trade ideas.

Should you have questions pertaining to Leisure Signal Provider, email to reach@qooaims.com with the subject title: Chat with Leisure.  I will be of assistance to guide you in mirroring without any copyrights.

Simply, do not suck in your trading any more.  Till next, aspire towards a thumb up!

 

At your service,

Leisure Signal Provider

https://www.myfxbook.com/members/myacct/leisure-sp/2438374