In just about every endeavor, from sports to personal relationships to business, people are constantly seeking "the secret" that will make success easier. If we can only figure out this simple solution that many successful people seem to know already, then our lives will be simple and easy.
Stock trading is particularly seductive when it comes to figuring out the secret. All we need to do is find the magic indicator, follow the right social media guru or determine the secret formula to picking great stocks. There must be some shortcut these folks making millions of dollars know that we don't.
The secret to great trading success is that there is no shortcut. No magic formula exits that will make it easy. The secret to success in trading is to work at it daily for a long time. You don't get discouraged when times are tough, and you don't start thinking that you are a genius when times are good. You slog away at it day after day, but the good news is that success is nearly inevitable if you don't give up.
Slogging away at trading sounds dreary and unpleasant. It will be extremely hard at various times and you will lose money. You will inevitably go through periods when it seems you can't do anything right. No matter how skilled you are at trading you will never avoid bad luck and ugly surprises.
The key is to maintain a positive mindset. That is what keeps you going. You know there is another opportunity out there, and if you stay focused and work at it you will find it. After going through a few cycles it becomes easier to understand how the good times don't last forever, but neither do the bad times.
Recently, many newer traders went through one of the most challenging trading periods they have ever experienced. The very poor action in many stocks has been well-hidden by the indices and business media, but the correction in growth stocks and speculative small-caps that started in mid-February 2021 was one of the worse bear markets we have seen in a while. It was even worse in many ways from the 2020 COVID crash because when that occurred all stocks fell in tandem and the reasons for the collapse were very obvious.
Quite a few traders washed out in the correction over the last few months, and then the cryptocurrency crash wiped out even more who thought it was a safe haven.
This action is just part of the normal cycle, and this past week we had an improvement in some of the action. Those traders who have stuck with the market over the past few months were rewarded with some better trading as speculative stocks have started to improve.
The daily slog of trading requires some real effort. It isn't just about watching financial TV or reading tweets. While we always want to have good information and understand the market environment, what is most important is to be ready to act as conditions shift. Every day we need to evaluate the stocks we hold and determine if they need some attention.
Just because we are looking at the market and stocks regularly doesn't mean that we are doing any real work. It is easy to think that passive attention can take the play of real action. One of the easiest things for traders to do is to sit and watch as the stocks they favor crash through crucial support levels and rack up significant unrealized losses.
Simply looking at the market daily is not enough. You have to work at it and develop plans, tactics and strategies regularly. The slog of trading is implementation and effort, not just passive observation.
If you are prepared to do the hard work of trading and stick with it for years, then you will have a source of income for the rest of your life. There is no simple secret, but the path to success is quite clear.
"Trading" - Google News
May 29, 2021 at 09:00PM
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Revealing the Secret to Trading Success - RealMoney - RealMoney - RealMoney
"Trading" - Google News
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