www.varchev.com

Adam Lemon: 11 Things Successful Traders Will Never Say

Rating:

12345
Loading...

Adam Lemon, offers 11 false trading statements to avoid, demonstrates why a successful trader would never say such things, and contradicts them all with solid suggestions that make more sense and could prove to be much more beneficial for traders.

1. “I never take a loss.” Losses are an inevitable part of trading. Successful traders know that sooner or later a runaway loss would wipe out their account, even if hanging on for a recovery might pay off in the short-term. In trading, everyone loses sometimes, it’s the ability to win more than you lose that makes you a successful trader.

2. “Money management is not important.” Deciding how much you risk on each trade is just as vital to long-term success as good trade entries and exits.

3. “Averaging down is a good entry strategy.” Why would you want more of something that is going against you? Successful traders starting strong is a critical sign of a successful trade. Adding to a trade at a worse price is a self-indulgent psychological defense mechanism that professionals cannot afford (and don’t use often, if ever).

4. “I can predict short-term movements from a chart with 90% accuracy.” This is simply impossible and even the most talented technical traders claim maximum success rates below 70%. Very few traders do better than 55%, even when picking their battles extremely carefully.

5. “I have a strategy that is profitable in all market conditions.” There are two ways to make money trading. The first is to use a defined strategy that makes some money in most market conditions or lots of money in rarer market conditions. The second is to use your own discretion and judgment of the market. A magic formula that makes money every day simply does not exist, with the possible exception of high-frequency trading, which is not accessible to retail traders.

6. “You should be in the market every day.” There are times of crisis when the market is so wild and unpredictable that almost any kind of trading becomes dangerous. Breaks from the market can also refresh the mind and relax the body.

7. “This price just can’t go any higher or lower.” The market can do anything at any time. As John Maynard Keynes once said, “The market can remain irrational for longer than you or I can remain solvent.”

8. “I bet the farm on this trade.” Jesse Livermore is widely considered to be the greatest trader of all time and he frequently bet his metaphorical farm. Consider the facts that he went broke several times during his career—most notably at the end of it—and died at his own hand. Those very few traders who retire rich after betting the farm are not successful, just very lucky.

9. “I learned everything there is to know about trading.” This is not just arrogance, but stagnation. Even if you already know what you need to know to be good, isn’t there always something out there that can simulate your mind to be great and help keep it sharp?

10. “I couldn’t do it without my fantastic trading platform.” A nice platform with bells and whistles is just that; a nice-to-have. As long as it is fast, visible, executes, and doesn’t crash, then it is all you need. A trading platform with all the bells and whistles, autotraders, and advanced charts, news feeds, and apps won’t turn a loser into a winner by itself.

11. “I am entirely self-taught.” Would you trust a surgeon that said he taught himself everything he knows? Of course not…because everyone who is skilled has to learn their skills from somewhere, whether it’s another professional, a course, or even just a few books. There is no such thing as a trader who just practiced without direction until he made perfect. He’d be sure to suffer devastating losses in the process and unless he’s already independently wealthy, he wouldn’t be able to afford this lesson. There’s no shame in learning from a professional—in fact—continued learning is the sign of a smart trader. The smartest of them all continue learning, even after they’ve found their successful strategy. The market is evolving constantly, and a successful trader knows that his trades should be too.


 Varchev Traders
RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance

London


25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256

Universal numbers

World Financial Markets - 0700 17 600    Varchev Exchange - 0700 115 44

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Disclaimer:

Derivatives and margin trading involve a high degree risk level. You should not trade Forex and CFD unless you fully understand how it functions, what your benefits can be, what your risk is, and what you may lose. Please, note that the losses can be practically unlimited and that the initial deposit will not permanently limit the risk. You have to fully realize your financial status and make sure that trading in derivatives hides the risk of losing the entire amount invested. Invest only the amounts that you are able to lose.

chat with dealer
chat with dealer
Cookies policy