One of the questions I get asked on a during my Trading Session “Why Trading Is So Difficult?”
Novice traders would have head of Famous Statement which makes them Lured towards trading
“Make Trading As Your Full-Time Profession In A Weekend!”,
“ Expiry Thursday Option Call Make killing In Trading! with just 50K”,
“We Got 100% Returns In A Month!”
and they immediately develop an opinion in their mind that trading is easy. They observe their friend,Social Media traders who mostly share their winning trades and your mind says it seems to be easy profession.
The stock market is very kind to every beginner as with Beginner Luck every beginner will make some profits and they think they are special and they have born with a special talent. By the time they lose this opinion, the market will absorb their entire capital and time has set to reach out some gurus.
Why is it so difficult to succeed as a trader?
Ask Yourself below Question
- How many guys do you know who can accept being wrong?
- How many guys do you know who can be wrong and lose money?
- How many guys do you know who can be wrong. lose money and not feel bad?
- How many guys do you know who can be wrong, lose money, not feel bad and reverse their position?
- How many guys do you know who can be wrong, lose money, not feel bad, and reverse their position quickly?
Losing Money Is Painful Emotionally
One of the reasons why the stock market is one of the most difficult places to make easy money is because we are very attached to our money. We all know how hard it is to make money using physical labor.Most of People make 10K-20K in 1 Month and in Stock market you can lose than in 1 Day.
When you have worked so hard to make that money and lose it all in a day, it can be a very very painful experience.
When you are not thinking straight because of emotional pains, you tend to make more and more silly mistakes. Mistakes in the stock market is very very costly.
Quick Decision Making
Trading always throws situations to make decisions quickly and it tests your ability to stick with your decisions when things don’t work as expected. Because markets are ever-changing, success is never assured. Indeed, it’s not at all unusual for very successful traders to re-enter a learning curve when market conditions change radically. By reacting to what the market gives us, we will be going with the flow of the market rather than against it.
When it comes to trading, only a trader that has a clear strategy with defined rules will be able to succeed in the market in the long term. The stock market is a very unforgiving creature. Just like a Tennis game, there are a set of rules that one needs to follow in the market.For most of the traders, stock market is another instrument for gambling. They will not a have trading plan, no idea on money management and they bet heavily on one trade hoping this one trade will make them super rich. This type of trading is the easiest way to go broke! Reading books, listening to other traders and self discovery will enable you come up with a set of rules to follow:
Some rules that traders can follow:
- Never Average a Losing Trade
- Never Do over leveraged trading
- Never buy a stock that’s Forming Lower High Lower Low
- Never buy a stock that is below its 200 MA
If you Gamble, definitely you will Tumble!
I just want to say that trading is very very very difficult, and it takes a long long time to do it right.I remember a poster said years ago to newbies who claimed trading was easy: Come back in 5 years and tell me what you think.