AT THE CLOSE
Taking small steps, being patient, and following a well-thought-out plan makes all the difference.
You’ve read enough books on technical analysis. You’ve attended seminars and courses. Now you’re ready to tackle the markets. Most people think that if they can analyze the markets correctly, they can make a profit easily. After spending years learning different forms of analysis and modeling techniques, and spending enough on expensive software or trading systems that you think can do some magic, people assume they can make money easily, but that is not the reality.
You can come up with the best analysis of the market and economy and still lose money. It happens to a lot of traders. Although I think analyzing the markets is important, it has little to do with successful trading. Successful trading has more to do with getting your money out of the market in a disciplined way.
THE SMALL LOSS
The biggest hindrance to successful trading is the refusal to accept your mistake when it can be done at a small loss. It is human nature, and unfortunately, one that comes at a cost. It can lead to massive destruction of all your wealth and all your confidence.