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3 Trading Lessons I Learned The Hard Way

3 Trading Lessons I Learned The Hard Way

hey hey what’s up my friend so in today’s episode I want to share with you tree tree trading lessons I learned the hard way and hopefully right you don’t have to go through the same path that I did lesson number one is this alright so back in my uni days I was somewhat of an investor I was you know buying shares in the local Singapore stock market so I was trading on margin at a point in time as well I think my capital base was about twenty thousand dollars then the broker allowed me to you know trade up to it in two or three times the my account size so I bought shares right I think up to about forty fifty thousand dollars worth of stock with my 20k capital base and I got lucky right because before the Europe debt crisis hit write the overall stock market is in a bull market so I had twenty thousand dollars worth of capital I ramped it up to about 30k within a couple of months and I put them I was feeling really good I mean here am i a uni student right making ten thousand dollars right in less than two months and even my broker commented that no man Rana you gotta meet us touch and guess what the Europe debt crisis hit I lost all my open profits right and I pretty much you know got back where I started from which is about 20k or slightly less so the problem with that is that the lesson I learned is that you can’t just take whatever results that you had recently and project it into the future so what I did is that I had made about ten thousand in two months and I thought man ten thousand dollars in two months that means it’s about fifty thousand dollars in ten months almost sixty thousand in a year wow that’s pretty good money to spare five thousand dollars a month right just investing the markets well the problem with this is that the markets change right goes from an uptrend to range to downtrend market is always changing and clearly what happened to me is that I lost you know whatever open profits are head right and give it all back to the markets so this means right you can be having a great year 50% profits this year but guess what makes your things might change right it might not be the same as what you experienced this year could be better or worse alright so don’t have unrealistic projections right don’t just you know project it linearly like this in a market because it doesn’t work that way alright lesson number two I underestimated the work involved to be a successful trader so what happened is that when I first got started I thought it you know man I just need to know understand how the MA what is by orderly be known as some other market other after which I just need to memorize a few simple chart patterns may be here a shoulders pattern a hammer a shooting star ping ping identify support resistance or that’s pretty much it right wait for the price to come to support wait for hammer to form click buy one too to risk reward ratio TP that’s it call it the day I thought that’s pretty much what trading is all about and it’s only when I dive deeper I realized man it’s not as easy as it seems right there’s a lot more work to be done I clearly underestimated the workload so let me just share with you what’s really involved right if you want to be successful at trading it’s gonna be a profitable trader number one you have to develop a trading plan okay you’re the trading plan go until which markets your trading specific market conditions your entries exist trade management risk management etc once you’ve developed your trading plan you need to execute your trade according to your plan and this is where most trader falter they have problem executing right for example even ten traits right then consistent rates according to that trading plan they have problem doing it right because they feel bored they don’t have the patience to wait for their trading setup right they have you know the itchy finger syndrome right they want to revenge trade they want some action in the markets right if you can’t even execute your trades consistently guess what you’re not gonna be a consistent trader so once you’ve done if the execution you need to review your trades right review you know what went wrong what went right what are the setups are that are making you money okay and and recording right recording your traits as well every time you put on the trade you need to record them right so you can see that there’s a lot of work involved right developing execution recording reviewing not just you know memorizing some simple parents you know and make money from the market doesn’t work that way so this is the second lesson that I had to learn right I underestimated the work involved right to be a trader and finally the last lesson that I learned away is that I was very close-minded I was stubborn to be to be honest I was very stubborn so in my earliest of trading right I got started in price action trading I think it’s one of the earlier methodologies that I’ve learned in life and I assume that price action trading is the way to trade this is the holy crow this is the only correct way to treat the markets and a problem with that is that it made me in know everything else right so I was very close-minded I just think that precision is key i focus entirely on price section and a problem with that is that that’s not true right there are ways to treat the market trend following mean reversion trading systems trading calendar spreads etc so the the aha moment ahead is that when I realize main hedge funds out there right multi-billion dollar hedge funds they actually adopting a strategy called trend following and I’m scratching my head trend following is that trend trading so IIIi explode for the N I realized there’s no hope there’s a whole new world right outside of price action trading and that’s where I got involved with trend following right then from one thing led to another from trend folding right I I explode systems trading mean reversion trading right and that’s kind of open up my eyes and realize that when it comes to trading that there are many ways to skin a cat right you can’t just think that your method is the best right you can’t just you know you know just think everything else as though it’s John right I mean if you do that right then you’re trading education is pretty much limited to whatever you know at hand but if you treat your cup right as half-full you always feel that there’s always something out there that you do not know you’re always exploring researching validating new ideas that that is how you get better as a trader so I always remind myself right that even though I’ve been training for ten years now right there’s always a lot of stuff that I’m not aware of to learn to validate to test to researcher and that’s how you grow and become a better trader right so the closed-mindedness the stubbornness or is what also you know helped me in back in my trading career alright so with that said right those are the three lessons I’ve learned hopefully you know you pick something up right and you know could improve yourself as a trader so with that said I have come towards the end of today’s episode and I will talk to you soon you


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