There is no magic in trading

[analyst100]

THERE IS NO MAGIC

“Your trading methodology has to make sense for you even if it’s the opposite of what makes sense for other people. Choices made in developing your approach to trading should suit you personally to minimize internal conflict. Only then will you have the confidence to remain true to its development and its execution during tough times. The long-term advantage of developing your own system from scratch (rather than trading someone else’s system) assures you of high compatibility with your beliefs, personality, edges, and objectives. That compatibility becomes one of your sustainable edges. As Curtis Faith of Turtle fame noted: “It’s not about the system, it’s about the trader’s ability to execute the system.” – (Source: VanTharp.com)


LB and I have just wrapped up the final in our series on full time trading. For the most part they have been enjoyable except for one twat who complained that it was unprofessional of LB to not present when she was suffering from severe laryngitis. Presenting for the first time in years is an interesting thing as the expectations of those you present to also change over time.

This particular series could be summarised as all the mistakes I have made in trading and the solutions I have found such as they are. One of the things I have learnt over the past few decades is that there is no magic. Trading is a grinding profession where your central tenet is not to go broke waiting for the next big move. I think in part some attendees were waiting for the magic.

That point in the seminar where you do a grand reveal of your magic strategy that never has a losing trade which means you can quit your job tomorrow and start trading full time with nothing other than a credit card because CFD providers will now in their wisdom allow you to fund your account with credit and earn frequent flyer points.

Regrettably the field of investing has been tainted by endless shonks who have polluted the thinking of people before they even set foot in the market. Before writing this piece, I Googled trading bitcoin for a living and got 35,900,000 returns. Certainly not all of them relate to trading bitcoin or any other crypto full time but if even 10% do then then that’s a staggering 3.5 million  sites promising people that they can give up their day job and start trading overnight.

The central theme of these sorts of sites and it is not limited to cryptos is that you can trade full time with very limited capital. And you can do this because you will never have a losing trade. Your equity curve will be a linear trajectory that soars from the bottom left hand corner of the chart to infinity without ever breaking stride. I can understand why this sort of thing has permeated the thinking of new traders.

Whilst this sounds seductive it ignores many of the key realities of trading the foremost of which is that trading does not produce linear returns. We encounter a feature of equity curves called drawdown. All trading systems generate drawdowns – in a very general sense if you are a trend following you expect to have a drawdown of between 15% to 25% once per year. As an example, consider the equity curve below.

This is the equity curve of Dunn Capital a money manager that uses trend following as its basic tool. You see decades of outperformance punctuated by drawdowns. There is an inviolate relationship between performance and drawdown, if you are swinging fr the fences you need to expect to be struck out a lot. Irrespective of the trading system drawdown is a fact of life for traders – it can only be avoided by not trading. If someone tells you that their equity curve never draws down, then they are a liar. It really is that simple.

The implication for those seeking to trade full time is that your first drawdown will coincide with your move to full time trading. This is a natural feature of systems, they cut their losses and then let their profits run. There is a timing dislocation between these two events that results in the account value immediately slipping. The problem is that this occurs at a time when you are most economically and emotionally vulnerable, it is also a problem because most new traders are undercapitalised. They simply don’t have enough money because they have not thought their transitions through and they may or may not have been infected by the thinking that you can give up your day job and earn 100k a year on a bank of 50k. It is at this point in a seminar that I can see how people begin to sag because it begins to dawn on them that they need much more than think to survive as a trader.

However, I think they are missing the bigger picture since the move to full time trading does not have to be an all-in proposition. The move can occur gradually over time as your capital grows and you acquire more skill. And along the way your life begins to change in small but incremental amounts. You may even reach a point where you stop believe in magic and start believing in your own ability to slowly and inexorably change your own life.

Author: Chris Tate
Article reproduced with kind permission of the author.
Source: https://www.tradinggame.com.au/there-is-no-magic/ 


I end this piece with the quotes below:

“Just coming back from vacation where we’ve been doing a lot of hiking in the mountains, here’s an analogy. You’re standing on a peak of a mountain looking at an even higher peak. But to get there you first have to go down that small valley…no way around it!

It's the same in trading, so as long as the size of the drawdown is within your expectations, you can and should relax when you’re in a drawdown. It's just a necessity you have to endure to get those profits. So understanding and accepting Drawdowns as part of this business will make your life as a trader much easier!” – Marco Meyer (Source: Tradingeducators.com)

“Having said that drawdowns are still making me uncomfortable. I don't like them at all and each time I'm in a big one I'm having the same doubts and troubles most of you probably have too. But knowing that actually nothing is wrong helps a lot to make it through these times. Without that knowledge and understanding, you not only have the doubts but you allow them to win over, follow them and then probably stop trading at the worst time possible.” – Marco Meyer (Source: Tradingeducators.com)


www.tallinex.com wants you to make money from the markets

[randythered]

Just coming back from vacation where we’ve been doing a lot of hiking in the mountains, here’s an analogy. You’re standing on a peak of a mountain looking at an even higher peak. But to get there you first have to go down that small valley…no way around it!

That seems to perfectly describe the situation we are facing now and it's why i'm relatively at ease with things. Sometimes it's not possible to keep going up and you need to work your way back down, take stock and plot a new course to higher heights.

[butka]

Regrettably the field of investing has been tainted by endless shonks who have polluted the thinking of people before they even set foot in the market.
[...]
The central theme of these sorts of sites and it is not limited to cryptos is that you can trade full time with very limited capital. And you can do this because you will never have a losing trade.

Yes, they sort of make you think that you won't be losing trades if you adopt their strategy and join their circle (for a hefty fee). The reality is quite the opposite. No matter the trading system, you will have a lot of losing trades, but if you have a good money management system in place, you will make money consistently. It's not so much about the trading strategy as it is about the money management strategy and discipline in executing it. Not everyone can do that.

For example, beginners in trading (such as I'm) tend to let losing trades run longer than necessary. On the other side, they tend to cut winning trade early without letting them fully develop. This is pure psychology and it is probably the hardest thing to master.

All in all, interesting read. Thanks for sharing.

[1Referee]

This is pure psychology and it is probably the hardest thing to master.

People shouldn't even attempt to master it. It's way better to focus on reliable forms of income rather than something so flashy and tricky as trading.

Trades in most cases end up being a disappointment, regardless of the outcome. If you buy at $100 and the price falls to $70 you are disappointed. If you buy at $100 sell at $120 but the price goes up to $150 you are yet again disappointed. In other words, the nothingness in trading continues for as long as you keep traing.

I do occasionally watch all these bigshots on youtube pulling out their charts and draw lines in all sorts of directions. You know what my thought is? Get a life. Seriously. Some times they have drawn so many lines and triangles, that you can't even see the base chart anymore, lol.

[butka]

Trades in most cases end up being a disappointment, regardless of the outcome. If you buy at $100 and the price falls to $70 you are disappointed. If you buy at $100 sell at $120 but the price goes up to $150 you are yet again disappointed. In other words, the nothingness in trading continues for as long as you keep traing.

I sign every word you said. You have pretty much summarized what every trader must go through during his/her trades. I do trade with a very limited sum of crypto, just for fun, but I find the experience emotionally wrecking. Unless maybe if you can distance yourself from the results of your action. Which is easier said than done. I really don't know how the professional traders make it. Or maybe they just give off an impression of ease and success?

[Arthurian60]

Trading is something you should do while you can. A lot of people jump into trading thinking they can squeeze quick profit from it and exit it. No! There is no magic in trading. You have to learn and improve your trading skills. Sometimes you will lose and sometimes you will gain. You have to stick to whatever you decide.

[asyakashi]

Trading is something you should do while you can. A lot of people jump into trading thinking they can squeeze quick profit from it and exit it. No! There is no magic in trading. You have to learn and improve your trading skills. Sometimes you will lose and sometimes you will gain. You have to stick to whatever you decide.

I agree, many beginners consider that trading is a fast way to increase profits. like easy with the principle of buying cheap, and selling. the fact is not that easy it requires stable emotions

[Patient_Zero]

Trading is something you should do while you can. A lot of people jump into trading thinking they can squeeze quick profit from it and exit it. No! There is no magic in trading. You have to learn and improve your trading skills. Sometimes you will lose and sometimes you will gain. You have to stick to whatever you decide.

in a trade there is no such thing as a miracle, because the miracle is like we are gambling, expecting big profits in a short time, very different from trading, which is always trying to find a profit that is not so big but can be continuous, so the business of buying crypto currency it really requires sufficient understanding, this can be obtained through learning and making careful observations, we must realize there is no such thing as a miracle, if we do not want to try to advance we will always be left behind.

[creeps]

Trading is something you should do while you can. A lot of people jump into trading thinking they can squeeze quick profit from it and exit it. No! There is no magic in trading. You have to learn and improve your trading skills. Sometimes you will lose and sometimes you will gain. You have to stick to whatever you decide.

I agree, many beginners consider that trading is a fast way to increase profits. like easy with the principle of buying cheap, and selling. the fact is not that easy it requires stable emotions

Right, trading is pure of hard work and dedication, its easy to buy and sell but if you just depend on that you will not become a good trader.
To become a good trader you need to study more about it, you need to know the indicators that you will going to use in order to support your trading decision.
Beginners only think about making money, they forget to understand the real concept of trading and that is why many of them are losing money easily. Yes we can earn in just buy low, sell high method but its not that easy to spot when to enter and know when to exit, trading still must be done with enough knowledge. I don't know someone who successfully do trading without any sleepless night, tired of reading charts, and monitoring the market, its all about the hard work.

[yanto@1977]

THERE IS NO MAGIC

“Your trading methodology has to make sense for you even if it’s the opposite of what makes sense for other people. Choices made in developing your approach to trading should suit you personally to minimize internal conflict. Only then will you have the confidence to remain true to its development and its execution during tough times. The long-term advantage of developing your own system from scratch (rather than trading someone else’s system) assures you of high compatibility with your beliefs, personality, edges, and objectives. That compatibility becomes one of your sustainable edges. As Curtis Faith of Turtle fame noted: “It’s not about the system, it’s about the trader’s ability to execute the system.” – (Source: VanTharp.com)


LB and I have just wrapped up the final in our series on full time trading. For the most part they have been enjoyable except for one twat who complained that it was unprofessional of LB to not present when she was suffering from severe laryngitis. Presenting for the first time in years is an interesting thing as the expectations of those you present to also change over time.

This particular series could be summarised as all the mistakes I have made in trading and the solutions I have found such as they are. One of the things I have learnt over the past few decades is that there is no magic. Trading is a grinding profession where your central tenet is not to go broke waiting for the next big move. I think in part some attendees were waiting for the magic.

That point in the seminar where you do a grand reveal of your magic strategy that never has a losing trade which means you can quit your job tomorrow and start trading full time with nothing other than a credit card because CFD providers will now in their wisdom allow you to fund your account with credit and earn frequent flyer points.

Regrettably the field of investing has been tainted by endless shonks who have polluted the thinking of people before they even set foot in the market. Before writing this piece, I Googled trading bitcoin for a living and got 35,900,000 returns. Certainly not all of them relate to trading bitcoin or any other crypto full time but if even 10% do then then that’s a staggering 3.5 million  sites promising people that they can give up their day job and start trading overnight.

The central theme of these sorts of sites and it is not limited to cryptos is that you can trade full time with very limited capital. And you can do this because you will never have a losing trade. Your equity curve will be a linear trajectory that soars from the bottom left hand corner of the chart to infinity without ever breaking stride. I can understand why this sort of thing has permeated the thinking of new traders.

Whilst this sounds seductive it ignores many of the key realities of trading the foremost of which is that trading does not produce linear returns. We encounter a feature of equity curves called drawdown. All trading systems generate drawdowns – in a very general sense if you are a trend following you expect to have a drawdown of between 15% to 25% once per year. As an example, consider the equity curve below.

This is the equity curve of Dunn Capital a money manager that uses trend following as its basic tool. You see decades of outperformance punctuated by drawdowns. There is an inviolate relationship between performance and drawdown, if you are swinging fr the fences you need to expect to be struck out a lot. Irrespective of the trading system drawdown is a fact of life for traders – it can only be avoided by not trading. If someone tells you that their equity curve never draws down, then they are a liar. It really is that simple.

The implication for those seeking to trade full time is that your first drawdown will coincide with your move to full time trading. This is a natural feature of systems, they cut their losses and then let their profits run. There is a timing dislocation between these two events that results in the account value immediately slipping. The problem is that this occurs at a time when you are most economically and emotionally vulnerable, it is also a problem because most new traders are undercapitalised. They simply don’t have enough money because they have not thought their transitions through and they may or may not have been infected by the thinking that you can give up your day job and earn 100k a year on a bank of 50k. It is at this point in a seminar that I can see how people begin to sag because it begins to dawn on them that they need much more than think to survive as a trader.

However, I think they are missing the bigger picture since the move to full time trading does not have to be an all-in proposition. The move can occur gradually over time as your capital grows and you acquire more skill. And along the way your life begins to change in small but incremental amounts. You may even reach a point where you stop believe in magic and start believing in your own ability to slowly and inexorably change your own life.

Author: Chris Tate
Article reproduced with kind permission of the author.
Source: https://www.tradinggame.com.au/there-is-no-magic/ 


I end this piece with the quotes below:

“Just coming back from vacation where we’ve been doing a lot of hiking in the mountains, here’s an analogy. You’re standing on a peak of a mountain looking at an even higher peak. But to get there you first have to go down that small valley…no way around it!

It's the same in trading, so as long as the size of the drawdown is within your expectations, you can and should relax when you’re in a drawdown. It's just a necessity you have to endure to get those profits. So understanding and accepting Drawdowns as part of this business will make your life as a trader much easier!” – Marco Meyer (Source: Tradingeducators.com)

“Having said that drawdowns are still making me uncomfortable. I don't like them at all and each time I'm in a big one I'm having the same doubts and troubles most of you probably have too. But knowing that actually nothing is wrong helps a lot to make it through these times. Without that knowledge and understanding, you not only have the doubts but you allow them to win over, follow them and then probably stop trading at the worst time possible.” – Marco Meyer (Source: Tradingeducators.com)


www.tallinex.com wants you to make money from the markets

I agree with that, trading is art and mystery. Many people still believe trading is an easy way to get rich, wrong mindset will give you bankrupt. All depend knowledge, strategy and money, take decisions is hard part. Very good explanation about situation from your post, it will make us open mind about fix and fit our mindset and strategy.

[Upgrade00]

Trading is a job meant for the professionals, and if you must do it then you must be one.
Take years of studying, even find a reputable college which offered forex trading, and you can utilize the same strategy in cryotocurrency.

Regrettably when someone simply dabbles into trading on the promise of which profits, they lose their capital teice as fast.
Not every professional even knows there trade, so if you must invest in someone else's skill, it must be one with a good track record or profit and reputation.

[nicster551]

THERE IS NO MAGIC

“Your trading methodology has to make sense for you even if it’s the opposite of what makes sense for other people. Choices made in developing your approach to trading should suit you personally to minimize internal conflict. Only then will you have the confidence to remain true to its development and its execution during tough times. The long-term advantage of developing your own system from scratch (rather than trading someone else’s system) assures you of high compatibility with your beliefs, personality, edges, and objectives. That compatibility becomes one of your sustainable edges. As Curtis Faith of Turtle fame noted: “It’s not about the system, it’s about the trader’s ability to execute the system.” – (Source: VanTharp.com)


LB and I have just wrapped up the final in our series on full time trading. For the most part they have been enjoyable except for one twat who complained that it was unprofessional of LB to not present when she was suffering from severe laryngitis. Presenting for the first time in years is an interesting thing as the expectations of those you present to also change over time.

This particular series could be summarised as all the mistakes I have made in trading and the solutions I have found such as they are. One of the things I have learnt over the past few decades is that there is no magic. Trading is a grinding profession where your central tenet is not to go broke waiting for the next big move. I think in part some attendees were waiting for the magic.

That point in the seminar where you do a grand reveal of your magic strategy that never has a losing trade which means you can quit your job tomorrow and start trading full time with nothing other than a credit card because CFD providers will now in their wisdom allow you to fund your account with credit and earn frequent flyer points.

Regrettably the field of investing has been tainted by endless shonks who have polluted the thinking of people before they even set foot in the market. Before writing this piece, I Googled trading bitcoin for a living and got 35,900,000 returns. Certainly not all of them relate to trading bitcoin or any other crypto full time but if even 10% do then then that’s a staggering 3.5 million  sites promising people that they can give up their day job and start trading overnight.

The central theme of these sorts of sites and it is not limited to cryptos is that you can trade full time with very limited capital. And you can do this because you will never have a losing trade. Your equity curve will be a linear trajectory that soars from the bottom left hand corner of the chart to infinity without ever breaking stride. I can understand why this sort of thing has permeated the thinking of new traders.

Whilst this sounds seductive it ignores many of the key realities of trading the foremost of which is that trading does not produce linear returns. We encounter a feature of equity curves called drawdown. All trading systems generate drawdowns – in a very general sense if you are a trend following you expect to have a drawdown of between 15% to 25% once per year. As an example, consider the equity curve below.

This is the equity curve of Dunn Capital a money manager that uses trend following as its basic tool. You see decades of outperformance punctuated by drawdowns. There is an inviolate relationship between performance and drawdown, if you are swinging fr the fences you need to expect to be struck out a lot. Irrespective of the trading system drawdown is a fact of life for traders – it can only be avoided by not trading. If someone tells you that their equity curve never draws down, then they are a liar. It really is that simple.

The implication for those seeking to trade full time is that your first drawdown will coincide with your move to full time trading. This is a natural feature of systems, they cut their losses and then let their profits run. There is a timing dislocation between these two events that results in the account value immediately slipping. The problem is that this occurs at a time when you are most economically and emotionally vulnerable, it is also a problem because most new traders are undercapitalised. They simply don’t have enough money because they have not thought their transitions through and they may or may not have been infected by the thinking that you can give up your day job and earn 100k a year on a bank of 50k. It is at this point in a seminar that I can see how people begin to sag because it begins to dawn on them that they need much more than think to survive as a trader.

However, I think they are missing the bigger picture since the move to full time trading does not have to be an all-in proposition. The move can occur gradually over time as your capital grows and you acquire more skill. And along the way your life begins to change in small but incremental amounts. You may even reach a point where you stop believe in magic and start believing in your own ability to slowly and inexorably change your own life.

Author: Chris Tate
Article reproduced with kind permission of the author.
Source: https://www.tradinggame.com.au/there-is-no-magic/ 


I end this piece with the quotes below:

“Just coming back from vacation where we’ve been doing a lot of hiking in the mountains, here’s an analogy. You’re standing on a peak of a mountain looking at an even higher peak. But to get there you first have to go down that small valley…no way around it!

It's the same in trading, so as long as the size of the drawdown is within your expectations, you can and should relax when you’re in a drawdown. It's just a necessity you have to endure to get those profits. So understanding and accepting Drawdowns as part of this business will make your life as a trader much easier!” – Marco Meyer (Source: Tradingeducators.com)

“Having said that drawdowns are still making me uncomfortable. I don't like them at all and each time I'm in a big one I'm having the same doubts and troubles most of you probably have too. But knowing that actually nothing is wrong helps a lot to make it through these times. Without that knowledge and understanding, you not only have the doubts but you allow them to win over, follow them and then probably stop trading at the worst time possible.” – Marco Meyer (Source: Tradingeducators.com)


www.tallinex.com wants you to make money from the markets

There is somehow in crypto because once you can buy anything for no reason then it suddenly pumps so it will be probably magic to me.

[Hivalley]

Please stop quoting the entire OP,the original post is itself so long,quoting it makes it unreadable really I must say..

On topic:Its present amongst newbies in trading I think,one feels he/she can get in,invest,gather bags of money and keep going on and on..
And when they are eventually faced with the reality of trading they get hard done and most times crash along the way..

Trading takes loads and tons of patience as their happens to be no get rich quick scheme when trading,one ought to invest knowing at the back of their mind that it takes long to maximize profits..
Except one is a day trader who looks for little rise,and sells off immediately.

[Gozie51]

For example, beginners in trading (such as I'm) tend to let losing trades run longer than necessary. On the other side, they tend to cut winning trade early without letting them fully develop. This is pure psychology and it is probably the hardest thing to master.

Lol,  you got me laughing. Such is an experience. That is what I could call traders apathy. You fear that a profiting trade might not get to a certain high highs, you end it and the next hour, same trade is dancing at that same spot. But then, it is still better to take your profit when you think it fit because anything can cause the price reversal.

[gantez]

This is pure psychology and it is probably the hardest thing to master.

People shouldn't even attempt to master it. It's way better to focus on reliable forms of income rather than something so flashy and tricky as trading.

   Is such a reliable venture better than the so called focus income that perhaps comes at the end of the month or week depending on the country. One hardly succeeds in a venture they don't have strong passion, zeal or interest in, so is about learning the skills to trade because many people make good money from it especially forex trade.

[Indrawan77]

I really like the quote, trading is about analysis and speculation through the chart and data, it takes time and dedication to keep on learning to make profit, there is no shortcut or magic that can make you always make money from trading, and each of the people got their own strategy to achieve profit, so ecah of them got a strategy that maybe won't work for you, so trading is about you, and your ability to analyse and take decision

[sclmte]

Talk about trading should be taken care of and we will slowly make interference in a trading market as needed. trading is not a magic just with one click you can just easy to finish, but in what I say that it's easy to process but needed to be careful because sometimes you will win of this and sometimes you're losing money and it's really important that trading is to be analyzed well because of this, you can get a lot of profits.

[gilangIDR]

I really like the quote, trading is about analysis and speculation through the chart and data, it takes time and dedication to keep on learning to make profit, there is no shortcut or magic that can make you always make money from trading, and each of the people got their own strategy to achieve profit, so ecah of them got a strategy that maybe won't work for you, so trading is about you, and your ability to analyse and take decision

I also agree that this should indeed be a reference in the world of trading. Trading is a sure thing because we will read data and do graph analysis. But remember that sometimes there is a miracle. This happens a lot and we must be able to make decisions quickly. If it can be calculated then luck and magic will play a role in about 30% of the final result, I say that because I am a trader and I experience it. Try to think and see how the facts are, trading is a pleasant job for me.

[timmydakolo2]

THERE IS NO MAGIC

“Your trading methodology has to make sense for you even if it’s the opposite of what makes sense for other people. Choices made in developing your approach to trading should suit you personally to minimize internal conflict. Only then will you have the confidence to remain true to its development and its execution during tough times. The long-term advantage of developing your own system from scratch (rather than trading someone else’s system) assures you of high compatibility with your beliefs, personality, edges, and objectives. That compatibility becomes one of your sustainable edges. As Curtis Faith of Turtle fame noted: “It’s not about the system, it’s about the trader’s ability to execute the system.” – (Source: VanTharp.com)


LB and I have just wrapped up the final in our series on full time trading. For the most part they have been enjoyable except for one twat who complained that it was unprofessional of LB to not present when she was suffering from severe laryngitis. Presenting for the first time in years is an interesting thing as the expectations of those you present to also change over time.

This particular series could be summarised as all the mistakes I have made in trading and the solutions I have found such as they are. One of the things I have learnt over the past few decades is that there is no magic. Trading is a grinding profession where your central tenet is not to go broke waiting for the next big move. I think in part some attendees were waiting for the magic.

That point in the seminar where you do a grand reveal of your magic strategy that never has a losing trade which means you can quit your job tomorrow and start trading full time with nothing other than a credit card because CFD providers will now in their wisdom allow you to fund your account with credit and earn frequent flyer points.

Regrettably the field of investing has been tainted by endless shonks who have polluted the thinking of people before they even set foot in the market. Before writing this piece, I Googled trading bitcoin for a living and got 35,900,000 returns. Certainly not all of them relate to trading bitcoin or any other crypto full time but if even 10% do then then that’s a staggering 3.5 million  sites promising people that they can give up their day job and start trading overnight.

The central theme of these sorts of sites and it is not limited to cryptos is that you can trade full time with very limited capital. And you can do this because you will never have a losing trade. Your equity curve will be a linear trajectory that soars from the bottom left hand corner of the chart to infinity without ever breaking stride. I can understand why this sort of thing has permeated the thinking of new traders.

Whilst this sounds seductive it ignores many of the key realities of trading the foremost of which is that trading does not produce linear returns. We encounter a feature of equity curves called drawdown. All trading systems generate drawdowns – in a very general sense if you are a trend following you expect to have a drawdown of between 15% to 25% once per year. As an example, consider the equity curve below.

This is the equity curve of Dunn Capital a money manager that uses trend following as its basic tool. You see decades of outperformance punctuated by drawdowns. There is an inviolate relationship between performance and drawdown, if you are swinging fr the fences you need to expect to be struck out a lot. Irrespective of the trading system drawdown is a fact of life for traders – it can only be avoided by not trading. If someone tells you that their equity curve never draws down, then they are a liar. It really is that simple.

The implication for those seeking to trade full time is that your first drawdown will coincide with your move to full time trading. This is a natural feature of systems, they cut their losses and then let their profits run. There is a timing dislocation between these two events that results in the account value immediately slipping. The problem is that this occurs at a time when you are most economically and emotionally vulnerable, it is also a problem because most new traders are undercapitalised. They simply don’t have enough money because they have not thought their transitions through and they may or may not have been infected by the thinking that you can give up your day job and earn 100k a year on a bank of 50k. It is at this point in a seminar that I can see how people begin to sag because it begins to dawn on them that they need much more than think to survive as a trader.

However, I think they are missing the bigger picture since the move to full time trading does not have to be an all-in proposition. The move can occur gradually over time as your capital grows and you acquire more skill. And along the way your life begins to change in small but incremental amounts. You may even reach a point where you stop believe in magic and start believing in your own ability to slowly and inexorably change your own life.

Author: Chris Tate
Article reproduced with kind permission of the author.
Source: https://www.tradinggame.com.au/there-is-no-magic/  


I end this piece with the quotes below:

“Just coming back from vacation where we’ve been doing a lot of hiking in the mountains, here’s an analogy. You’re standing on a peak of a mountain looking at an even higher peak. But to get there you first have to go down that small valley…no way around it!

It's the same in trading, so as long as the size of the drawdown is within your expectations, you can and should relax when you’re in a drawdown. It's just a necessity you have to endure to get those profits. So understanding and accepting Drawdowns as part of this business will make your life as a trader much easier!” – Marco Meyer (Source: Tradingeducators.com)

“Having said that drawdowns are still making me uncomfortable. I don't like them at all and each time I'm in a big one I'm having the same doubts and troubles most of you probably have too. But knowing that actually nothing is wrong helps a lot to make it through these times. Without that knowledge and understanding, you not only have the doubts but you allow them to win over, follow them and then probably stop trading at the worst time possible.” – Marco Meyer (Source: Tradingeducators.com)


www.tallinex.com wants you to make money from the markets

Definitely with all what you said down the line there is no magic in trading everything one have to put up for in order to achieve is all right in the head and mind to make it great. Most Cryptocurrency traders today put up their time, money and effort to get to the top where they are today.

[Yaunfitda]

Definitely there's no magic in making money in trading. But the problem is that there are a lot of people who thinks that trading is very easy and it's a get rich scheme, which is not. And it doesn't mean that someone because successful, you will have to copy his method.

Everyone is up there, you just have to find the right groove and see what trading methods fits your goal. No need to make things complicated for you, it's not rocket science, you just have to look at it like a journey and every small steps is a lessons to learn.