[ Trading is not for everyone ]
One of the main problems is that many approach trading without any specific knowledge and skills, believing that it is an easy and simple way
"to make money" calling it again
"game" despite being a complex activity that involves very important factors:
1- | Knowledge of the mechanisms that govern the functioning of financial markets and therefore a good method to rely on.
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2- | The management of one's emotions, since it is the emotional component that unconsciously guides us in investment decisions.
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Unfortunately in several books they tell with great emphasis how to increase the bank account in "ease" not to mention the "scientific professors" or the "famous gurus" who organize "freewheeling" specialized courses to get rich in a session or so. ..!
It is clear that those who get rich are certainly those who organize them but not those who participate in their courses.
A
TRUE Trader lives on trading and not on courses or other passive income. This must be said!
Earning on the stock market is not difficult, IT IS VERY DIFFICULT.
Method, rules, discipline and a lot of humility are the basics
to be able to have SOME CHANCE of success.
Method
It is absolutely essential to have a method, because Trading is the systematic repetition of a technical gesture.
Regole
Having rules allows in moments, sometimes difficult, to make objective decisions, without the heart (or the emotions) having its say.
Discipline
Discipline is nothing more than the ability to maintain psychological balance by controlling emotions.
In other words, it is the ability to apply the RULES, and therefore the application of the technique with constancy and determination.
Humility
Being humble is knowing how to be satisfied
WITHOUT getting involved in "negative emotions such as greed or wanting more and more! You have to be able to do "like an ant", that is, putting away a little at a time to then find "long-term security"
A classic example is when a position is opened, nothing easier, shortly after the
FEAR, the
PANIC is triggered, and we do not speak then if or when the operation goes to the side opposite to the desired one ...
ABSOLUTE PANIC !!!
Here comes the classic error:
"Rather than lose I get my hand cut off !!"
You are willing to lose indefinitely but not to CLOSE A LOSS POSITION!
In trading, there is no infallibility, errors and losses (contained by the rules) are part of this activity.
The percentage of winning operations, compared to the losers, will make money, the important thing is that the "gaining" sum is greater than the lost one.
For this reason: having rules, method and discipline are fundamental.
Sun Tzu (Chinese general and philosopher, probably lived between the sixth and fifth centuries BC) in his book "The art of war" said:
"If you know yourself and know your opponent, you will always win."
"If you only know yourself, you have an equal chance of winning and/or losing."
"If you don't even know yourself, you will always lose."
There is no "the operation of life", but there is
a continuous and constant collection.
We do not have to worry about losses but concentrate on the technical gesture to earn, remembering that a profitability of only 60% is enough to be successful on the stock market, and even with 45% it can be; the important thing is to CUT LOSSES AND LET EARNINGS RUN.
For those who invest in the stock market, the emotional state fluctuates between two fundamental emotions:
FEAR and GREED.
Only the balance between these two factors leads to the finish line. Whoever cuts it wins it.
Marco Ciucci Trader