Are Traders Dumber Than The Average Human Being? Part -I

By | January 19, 2015

When you listen to traders talking they throw around technical terms and sound really smart: VIX, implied volatility, DJIA Fractal match, XLV Call Ratio Spread, Adverse Excursion, intermarket analysis, Asset Swapped Convertible Option Transaction, Risk-Adjusted Return On Capital…

But when it comes to actual trading, traders don’t walk their talk. Even worse, it seems that traders forget to use their common sense and lose all sanity as soon as they start their trading platform. We summarized the biggest common sense trading fails for you.

  • You are not trading, you are fooling yourself

Although 70% of all traders quit within 2 years, 30% don’t give up on their dreams of living from their trading performance, whereas only 1% of all traders can trade profitably at all. These statistics tell us that there are thousands and thousands of ‘traders’ losing money on a consistent basis, even after years.

Be honest to yourself and think about how long you’ve been in the trading business now, trying to find ways to make money. Do you still lose consistently after years of trading? Do you know that you should have a trading journal, a trading plan and analyze past trades, stop hopping from system to system, but you just don’t do it?

Don’t lie to yourself because no one cares anyway, and you are the only one who knows that you are just pretending to be onto something, chasing some kind of dream without really being committed.

  • Do you listen to random people called SuperTrader123 or Profit call on forums/Social media and bet your money?

Many traders will hang around in forums or in trading groups and exchange ideas with other ‘traders’. But how often have you taken a trade because you read that someone said it was a ‘sure’ thing, or you added to a losing position because a forum user said he had seen this pattern before and it will turn again?

The internet can be a great place where you can access all the trading-information you need, but when it comes to meeting people online, you have to be realistic. If you don’t know who you are talking to, what their intentions are and their trading history, why for god’s sake would you risk your money based on a post a user called TraderKing123 made? Do you ask random people on the street for diet, health or investment tips?

 

  • Should you trade your savings after 3 months successful demo trading?

The goal of the vast majority of aspiring traders is it to trade their savings and live off the profits as a ‘full-time’ trader. Whereas, there is nothing wrong with this idea, the approach and mindset most traders have is nothing but shocking.

If you have saved money while working for 5, 10 or 20 years and then start trading your actual savings after 3 months of profitable demo trading, you are setting yourself up for a big disaster. Trading is like any other profession and becoming a professional trader is a journey that will take years.

Would you trust a med student in his first year to perform a surgery on your heart? Why do you think you should trade your hard earned money after a few trades on a meaningless demo account?

 

  • Just buy a trading algo or amibroker afl  and let him make millions while you sit at the beach

Do you really expect to reach your goal of personal freedom and independence by buying a trading algo or AFL and let it do all the work? 99% of all traders who buy a AFL  don’t even know the formulas the programmers included in the trading algorithm, but they still hope that one program will be their ticket to the world of the rich and famous.

Whereas high frequency trading is a profitable business, these companies spend hundreds of millions of Dollars and employ the smartest people they can get their hands on.

 

  • Can you make a living trading from your kitchen table while watching the Simpsons?

Although one of the advantages of being a trader is that you can work from nearly everywhere, traders misunderstand the word ‘work’. It’s not enough that you have a notebook and flip through charts to see if you can find a trade, while you watch TV-shows or hang out in Skype.

Trading is a highly competitive business and you have to make complex decisions all the time that decide about whether you can make money or blow up your account. If you can’t have a professional attitude towards trading, you are doomed.

How would you think of your doctor if is watching Cricket Match  while you talk to him about your heart problems!?

To be Continued

20 thoughts on “Are Traders Dumber Than The Average Human Being? Part -I

  1. John D

    That’s the pain avoidance mechanism.. behind this dumbness…which wont let the looser cut…
    do u have a solution.. prob every body know??

  2. Chandrabhusan singh

    Hi sunny cool yaar…. aap ek baat bato.
    apke hisab se politician main kon acha kam karta hai narendra modi ji ya kejriwal ????

  3. Virag

    Dear sunny…..

    Nobody in India can teach you such a wonderful technical analysis using so many different indicator with real time on day to day basis in advance.

    Don’t get frustration. Winning and Losses are part of life just accept it and kindly follow this blog and start trading with small lot e.g. 1 or 2 of nifty even you can go for OTM option so the risk will be of only 500 to 1000 rs and return will be very good around 2000 to 5000.

    All the best.. May you recover any losses if you have and master the art of trading using technical analysis

    Thank you so much Bhramesh Sir.

  4. Bramesh Post author

    Thanks All for your kind support. Money can be made but respect is always earned..

    Thanks all for making my day !!

    Rgds,
    Bramesh

  5. pravin salampuria

    Hi Sir,

    I just came across this Sunny “incident”.

    Since you have a blog people are entitled to their opinion but its not necessary for you to pay attention.

    Please do not be upset and let it spoil your work, which i am sure you worship.

    I and everyother person who follow you are aware of the great service you are providing.

    Best wishes,

  6. prakash tanak

    SOUR GRAPES FOR SUNNY : Performance sheet for Intraday and Positional is updated for December Month, Intraday Profit of 2.25 Lakh and Positional Profit of 1.49 Lakh

  7. raghav

    Dear Friend Sunny,

    May the data enlighten you – It would be fantastic if you start trading based on stock/index trading levels suggested by mr. brameshji. Create a blog and publish your daily trade journal highlighting P&L, rationale for entry and exit.. If you make any interesting “data driven” observations (for say 3 months), please do share your findings in your blog.

    Use bramesh’s analysis and his p&l as a guideline to refine your personal trading plan.
    Don’t just look at what he makes as profit and if you can’t achieve that don’t call the analysis as “sour grapes”.

    A small request – please stop using abusive language in this knowledge sharing portal.

    Best Wishes for your trading success..

  8. Sandeep

    O My God ,Sunny Leone on our portal ,doing tech analysis review.Sunny ji ,why dont you focus on something that suits you best and let Bramesh do what he is good at .
    Rightly said ,focus your energy on something constructive or contributing to the society,rather than irrational posts.
    Would save your face and time.
    Sorry guys for comparing Sunny to Sunny Leone :0)

  9. dtskalaialai

    hai bramesh ur view on market is really helpful to us,,,dont worry about some people who discouraging u or better stop reading their view

  10. Dhanaram Jayaram

    Dear Sunny,
    Nobody is forcing/compelling to trade based on brameshji’s level. From what you have written it seems you have lost heavily somewhere following some xyz analyst and not ready to believe what brameshji’s is saying/writing because of your biased view. Please do believe in brameshji’s everyword and follow his articles in his blog and facebook for atleast 6 months and I am sure you can become a better trader if not best.

  11. ramesh

    Useless Sunny keep quite…. This is the best site i ever seen till today… I already made a huge loss in mkt. Bt from 8 days i m in profit each snd everyday.. If u r not interested plz dont open and see also this site. Ok…. Go now. Brameshji keep in touch with us… Neglect those sunny, bunny, gunny, etc

  12. Bramesh Post author

    Thanks All for your kind words and support !!

    Rgds,
    Bramesh

  13. Bramesh Post author

    Dear Sunny,

    Everything is fake 🙂 please do not come and disturb the environment of the site. Please concentrate your energy on doing analysis and preparing plan for tomorrow and let me do the same.

    Rgds,
    Bramesh

  14. sathish4308

    @sunny , What are you trying to do here? Bramesh is a wonderful technical analyst, I respect his views about market. He has no intention to claim fake profits. Barking dogs seldom trade.
    (Sorry Mr. Bramesh for being harsh in your forum )

  15. prakash tanak

    Haters whisper the success but announce the failures (in our case there are no failures). Mr Bramesh, you are really doing yeomen service of educating investors absolutely free of charge. “If you stop every time a dog barks, your road will never end.” – Saudi Arabian Proverb So, Let us not pay any attention to such non-sense comments from such foolish readers, One must understand that it does not require any sense to not follow anybody’s site if it doesn’t suit him.

  16. Harsh oza

    Lol@ Mr sunny….horrendous blames on Mr bramesh.i have seen ups and downs of trading in my span of 1 year.and I can vouch for bramesh being a thorough gentleman. He has always worked for the uplift of the traders be it small or big…I have personally learned a lot from him and I owe him for my success..due to his Daily articles and not the levels I have been a better trader…and about the levels I can vouch for his nifty level since I am tracking it from Feb 2014.more than 80% success rate. And all this being offered for free.
    I guess u will run for someone charging 3000-5000 per months and appreciate that.
    anyways god bless u

  17. Bramesh Post author

    Dear Sunny,

    If you feel my profit are fake and my analysis is stopping you in becoming a profitable trader there is very simple solution “stop following the site”.

    Rgds,
    Bramesh

  18. sunny

    Does all this supertrader or kingtrader123 applies to you as well??? Why do you think you are different!!! You are doing the same thing. fooling other by showing nonsense profit of 2-3 lakhs in a month.

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