Saturday, May 3, 2014

Truth Vs Myth

        There are many misbeliefs about professional traders which divert the thinking and trading style of novice traders. Many retail traders assume three things about professional traders that are simply not true.

(1) They assume that almost every trade that professional traders pick is a winner.

(2) They assume that it takes a lot of money to be a professional trader.

(3) They assume that professional traders are secretly doing something that can't possibly be done by retail traders.

      None of these assumptions is correct and in fact we see time and time again that it isn't the number of winning trades you pick, how much money you have, or your privileged access to contracts that makes the difference- it is how you behave.

      We as professional traders became successful only because we choose to be successful in market and not to be in every trade. We also get wrong trades, book losses and also get frustrated sometimes in the market. But we never allow our psychology or emotions of last trade to impact our next trade, either it was a win or loose.

        We always like to stick with plan, rules, discipline and a strong psychology. This is how winners are made in this market, and there is no other way.


2 comments:

cdmoorthy said...

This is one of the most superlative article i come across very rarely on this subject, just because it gives a clear / true picture of ground reality in simple language without any ambiguity.

Good one in deed. Regards

Abhay Vaidya said...

Sir,

This thought should be at the very deep root level of every new-trader! Thanks a lot for writing this.

And one thing I would like to bring here is "All Sukhani-fans must be happy to see you on the blog regularly!"

Thanks again!
Regards
Abhay