Why is trading so difficult?

[tomorton]

Because there are so many different opinions it is not clear what works. So if everybody would have the same opinion, it would be clear what to do to trade well.

But as everybody would do the same, trading would be more difficult I think... as nobody would like to be the counterparty.

People don't necessarily make a profit from trading because others use methods that don't work. The fact is they do work, but not 100% of the time. So there are always successful traders who are losing on a given trade in a given time-frame.

So even if a law was passed which said everyone has to use one chart pattern and 2 standard indicators as filters as the only permitted system, there would still be traders winning and traders losing on any given day.

 

[padutrader]

People don't necessarily make a profit from trading because others use methods that don't work. The fact is they do work, but not 100% of the time. So there are always successful traders who are losing on a given trade in a given time-frame.

So even if a law was passed which said everyone has to use one chart pattern and 2 standard indicators as filters as the only permitted system, there would still be traders winning and traders losing on any given day.

i believe there is always counter party because everyone is not trading the same time frame.
this is what makes sense to me

 

[schweiz]

People don't necessarily make a profit from trading because others use methods that don't work. The fact is they do work, but not 100% of the time. So there are always successful traders who are losing on a given trade in a given time-frame.

So even if a law was passed which said everyone has to use one chart pattern and 2 standard indicators as filters as the only permitted system, there would still be traders winning and traders losing on any given day.

What a relieve!

 

[qxr1011]

Because there are so many different opinions it is not clear what works. So if everybody would have the same opinion, it would be clear what to do to trade well.

But as everybody would do the same, trading would be more difficult I think... as nobody would like to be the counterparty.

baloney

as i said before this is not for mediocrities, and those mediocrities (you called them everybody) actually do the same - they lose

 

[MidwesternTrader]

The psychological differences of trading sim vs. real trading are truly monumental. Taking actions (trades) that result in real losses are much more likely to influence future decisions - not sticking to trading plan, trading opposite of the "system", wild trading, etc.

I know traders that consistently make profits in sim every week, but as soon as they go live and have a single -$1,000 day, they completely fall apart every time. Even a small loss causes them to abandon their trading plan, trade discipline, etc. because they psychologically cannot handle losses.

Put trading in a different context - say a basketball game. When you play a game of basketball, you take shots. If the shot goes in, you get points: 1 point for a free throw, 2 points for closer shots and 3 points for longer shots. If you miss, nothing bad happens per se except the other team may get the ball and they get to try a shot.

Now imagine if basketball games were scored different. If you made the shot, you get points. If you miss the shot, the same number of points are subtracted from you! If you take no shots in the game, your score would be 0. But if you miss more shots than you take, your score would be negative. Imagine how basketball games would be played if they took points away when players missed shots? I would suspect the game would be played radically different.

That is one reason trading is so difficult, "psychological acceptance" of true risk vs. reward is a very different concept that most people will only experience in trading.

 

[qxr1011]

Now imagine if basketball games were scored different. If you made the shot, you get points. If you miss the shot, the same number of points are subtracted from you! If you take no shots in the game, your score would be 0.

wrong comparison imho

actually there is no difference from the basketball at all

trader plays against the market

trader scores - trader got a point (got money from the market)
market scores - market got a point (money from the trader)
if trader got more points than the market he wins (makes money)

if trader does not want to play (and nobody forced him to play) the score is 0:0

wannabe trader has one problem - he plays badly...

he loses the game

 

[qxr1011]

The psychological differences of trading sim vs. real trading are truly monumental. Taking actions (trades) that result in real losses are much more likely to influence future decisions - not sticking to trading plan, trading opposite of the "system", wild trading, etc.

I know traders that consistently make profits in sim every week, but as soon as they go live and have a single -$1,000 day, they completely fall apart every time. Even a small loss causes them to abandon their trading plan, trade discipline, etc. because they psychologically cannot handle losses.

Put trading in a different context - say a basketball game. When you play a game of basketball, you take shots. If the shot goes in, you get points: 1 point for a free throw, 2 points for closer shots and 3 points for longer shots. If you miss, nothing bad happens per se except the other team may get the ball and they get to try a shot.

Now imagine if basketball games were scored different. If you made the shot, you get points. If you miss the shot, the same number of points are subtracted from you! If you take no shots in the game, your score would be 0. But if you miss more shots than you take, your score would be negative. Imagine how basketball games would be played if they took points away when players missed shots? I would suspect the game would be played radically different.

That is one reason trading is so difficult, "psychological acceptance" of true risk vs. reward is a very different concept that most people will only experience in trading.

and all this psychological mumbo-jumbo is the result of trader knowing - that he can not play the game

he knows he is a sucker !

its just a bunch of multiple so called examples of so-called "successful" traders all around him , all the hype created by the industry and other suckers it attracted, that makes him to step into the game

he was told anyone can do it...

but he knows he can not !

on one side there is the hype (especially during the bull market) that trading is for everybody, on another one - simple voice in the head of the wannabe trader "what a fuck am i doing here !??"

he is often asking himself - am i a moron, everybody is doing it expect me...

i have news for him: no, you are not a moron, almost nobody making it, you are just like everybody else (mediocrity) unable to crack the issue

go home , fuck your wife, live your life, relax

 

[smallfil]

Making monies is easy. Keeping those monies is the hard part. You could win several trades in a row. Problem is your next several trades could be losers as well! January and February 2018 combined, I was ahead like $4,800.00 which is not a lot but, for a small account of $25,000.00 is not bad. Problem, I had big losses which ate up all of it and then, some. I stopped trading and reviewed my trading journal. What I found is I let some losses turn into big losses, premature entries and exits, trading against the trend. That pretty much covered most of the losses. I have refined and tightened my filter on trades I will take. Looking to take a smaller number of trades but, hopefully, better trades in the process. I trade options directionally, calls and puts only.

 

[MidwesternTrader]

wannabe trader has one problem - he plays badly...

he loses the game

That may be true, he may be a poor trader. It may be that simple.

But the best cash game poker players in the world often bust out several times in a career. I when I say bust out, I mean got nothing left to gamble with until they convince someone else to stake them.

Did they bust out because they were a poor players or played hands poorly? All it takes is during a month to get all in on 4 or 5 huge pots with 70 - 30 odds in your favor only to catch 4 - 5 consecutive bad beats on those monster pots. Did they play their hands right? Yes. Did they use money management? Probably. Did they bust out because they were bad players? Nope, they busted out because that can happen when dealing with odds and probabilities in a true risk vs. reward environment.

 

[qxr1011]

Did they bust out because they were a poor players or played hands poorly?

no hands in trading

All it takes is during a month to get all in on 4 or 5 huge pots with 70 - 30 odds in your favor only to catch 4 - 5 consecutive bad beats on those monster pots.

do not trade huge pots...

trading and poker just incomparable in that sense