Why Profitable Trading Is So Difficult

[wrbtrader]

The reason why trading is so hard is because what worked yesterday might not work today because of "market behavior".. Trust me it's not your fault, it's just how the market is design.. The good thing is the market only trends or it's a range.. The bad thing is trying to find one strategy that fits all.. People love to talk about trends but the problem is we hardly have very strong trend days...

I somewhat agree with this except for trying to find one strategy that fits all. I think markets today are too dynamic for such.

In contrast, if a trader has a strategy that's designed for one type of market condition such as a trend, it seems to me the best approach would be for that trend trader to develop the skills needed to recognize a trend and then apply the method only in those recognized trend like environments while ignoring the same trade signals that show up in range environments.

The above just seems more efficient than trying to design one strategy for application in all types of market conditions. In fact, I would go out on the limb and say that traders trying to apply one strategy to all types of market conditions are traders that have "difficulty" (pun intended) in recognizing different types of market conditions.

 

[austinp]

The reason why trading is so hard is because what worked yesterday might not work today because of "market behavior".. Trust me it's not your fault, it's just how the market is design.. The good thing is the market only trends or it's a range.. The bad thing is trying to find one strategy that fits all.. People love to talk about trends but the problem is we hardly have very strong trend days..

The reason for that misconception is, struggling traders think = feel they need to "win" every day. Many emotional reasons for that.

Because they don't have a rock-solid belief system intact for their approach. The first day it loses money, they inwardly fear it stopped working, will never profit again.

Because they come to places like this and read claims about how great traders profit every day.

Because it is human nature to expect reward for effort expended. "We sat here all day... it was possible to make two bucks, but we lost money. We screwed up, we failed." No one complains about making one week's income in a single day.... so long as the other four days are profitable too. Nobody is content to make one week's income in a day, and tread water the other four. Then fear & doubt creep in... "what if that one day never happened? What if it was an anomaly? What if I have no edge?"

==

Most symbols trend every day... for at least one or more segments. Make your money in those moves, put it in the bank, and leave it there. Quit trading and walk away... hands down the hardest thing for at-home gambler addicts who call themselves "traders" in disguise.

A real trader's job is to not lose much money in the process of making money. Once enough money is made, keep it from potential loss. Our job has absolutely nothing to do with trading all day & night, trying to figure out every possible wiggle bar by bar, etc.

That's all stuff for gamers. Not serious traders. Sit, watch, wait. Deal with boredom and long periods of inactivity. See your trade setups leap off the chart at you. Only trade those. Don't try to figure out the market or find a trade. Let the cherry trades appear, and ignore all else.

Book profits, keep profits, cut losses short in between. That's it. Trading is not a hobby or a game or a pastime or a measure of self-worth or a contest or bragging rights or anything else but a money-extraction process. Often droll, boring and mundane. If and when you finally reach that stage of trading, it becomes consistently profitable, too.

 

[eurusdzn]

ET never changes, I have no idea why NoDoji insists on even being here, although she has taken brief absences to veg out from all the BS of this forum. But then trading is a lonesome endeavor, we need occasional outlets to veg out from the stresses of trading.

People overall are just plain lazy when they first approach trading, don't have a clue what to read, what software to buy, whether to go Price Action or TA, they have a hot new account they just opened up and want to start making the big money, I mean how hard can it be, the neighbor made $600 the other week sitting on his arce, so he says.

I always thought forums were for exchanging ideas. And I have received more ideas here than time to test them all out. But the real lazy ones want chatrooms so they don't have to work at this craft, they cover up by insulting those who try to offer more than they ever could.

"Why Profitable Trading Is So Difficult", many reasons but mostly people will not spend three years min and not trade real time until they can sim trade and prove it over and over they can compete with the very best. Most don't have a well defined trading plan which needs to have answers to ever conceivable problem that might occur. The entries are but 1% of the trade, the during is like 90%, the 9% are like what to do when internet goes down or when to not take a good signal.
The nuances of trading are overlooked as something not important when others post them. Can you imagine what your account would be if you got rid of two losses each day?

I never been a good trend trader in day trading, I met very few who still had an account after ten years, I learned how to trade chop consistently, concentrated most of my energies on not losing, has nothing to do will ego or wanting to be right all the time, it has to do if you not going to lose often, account has to go up. Also, if you seldom lose, you can average down and trade size. Breakeven trades makes consistent money when you average down. But not many have the talent and discipline to do so.

Have to put in the time, keep great records, back test more than 100 sample size, ask questions then research the answers given.

Handle,
I do remember reading that you were recently drawn to spread trading.
And, you somewhat state here that you are a better chop and/or range trader.
Would you agree that a pair with good correlation and cointegration , charted as a spread (1st-2nd or 1st/2nd) is a fine example of chop and/or range trading?
Seems that way to me.

 

[Robert Weinstein]

Since this thread is about why profitable trading is so difficult and there are non-pikers chiming in about how laughable it is for a profitable trader to trade piker size (which, for the purpose of this challenge, I'll define as less than 6 lots of CL, NG and 6E, less than 10 lots of ES, and less than 20 lots of NQ), I challenge any of the non-pikers here to post their trade log for today. There were many significant price swings in each of the futures contracts I mention above.

It would be a fantastic inspiration for everyone to see the level to which we should all aspire.

Hi NoDoji,

I tried to send you a message but ET system won't let me. I guess your settings and or ET is the issue.

Can you PM your email please?

Thanks

Bob

 

[tradingjournals]

The answer to " Why Profitable Trading Is So Difficult ?" is really a simple one:Trading is a zero to negative sum activity, and consequently the majority must lose if a minority were to win. No amount of work/ learning/etc can defy the above mentioned law. I design my methods with this law in mind: on a small fraction of winners consistently win, and the majority loose. I challenge anyone who would disagree to prove that the assumptions/laws set in this post are not correct.

If you are among those who agree with me, what do you have in your methods that exploit the laws in your favor or at least prevent that you be exploited by those laws?

I also noticed that people do not seem to truly understand the edge. They seem to think that an edge is the same (in the sense of logical equivalence) as a positive expected value (which is not correct), and further seem to think that risk vs. reward have symmetric relationships.

In addition, one trading method is not enough. One would need in the order of 10 to 20 to qualify as a professional trader, because a trader is responsible not only for winnings but also for consistency.

if one has sufficient capital, certain edges could derive from capital and could be taught. If capital is limited, one needs to be far superior in knowledge, skills and emotions.

 

[Pigsky]

Interesting... let's review...

Nodoji claims to have a method that nets between $1500 and $5000 a week per CL contract, and it is 100% objective.

She says here she asks interested students to do a home work of finding a certain pattern in 2 weeks of price action...... and no one will do it. I understand most people are lazy, but surely at least a few are willing to do such a simple assignment???

Previously she said that she in the past shared exactly how she trades with a dozen ET members and that those members could look at any chart of any day and tell you exactly where she traded and why. Yet none of those people can come out and reveal their own testing of this method and what the results were??? I know if someone gave me an objective method that was so successful I would certainly test it and then report back whether or not it could produce the results claimed.

I wonder if some of the dozens of Nodoji students who have refused to do any of the work are willing to say why not?? There are always people jumping to defend her from any kind of questioning, so surely they can answer why they wont do the work she asks. There must be a reason. Maybe the student is lazy as ND says, or maybe they are not lazy but have some problem with the assignments or methods given to them, or maybe some other reason............

 

[Trader.Fighter]

Topic: Why Profitable Trading is So Difficult

Simple answer, because it just is, and when someone claims how easy it can be, proof never seems to appear, but excuses on top of excuses.

The fact that these back and forth discussions about consistent profitability continue to haunt us years after years in public forums is substantial evidence.

Something difficult takes decades to master, yet many are only willing to give it years.

 

[callmate]

Interesting... let's review...


Previously she said that she in the past shared exactly how she trades with a dozen ET members and that those members could look at any chart of any day and tell you exactly where she traded and why. ........

Here we go, I was one of those people in the chatroom with her! Yes, I can look at CL chart and say where Nodoji would have taken the trade. How does that help you?
I am not prepared to sit here and do some exercise just to convince you lot out there whether Nodoji is successful as a trader. Those of us who know her just keep silent, best way! Suffice to say she is very gifted and a GIVER!

 

[callmate]

Topic: Why Profitable Trading is So Difficult

Simple answer, because it just is, and when someone claims how easy it can be, proof never seems to appear, but excuses on top of excuses.

Why do you need proof? Is she selling anything? No! She is simply showing how she trades, take it or leave it!

 

[hitchslap]

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