Trading is one of the most lucrative and appealing careers. Â One of the big reasons is because it is a meritocracy. Â A lot of your skill is measured in your profit and loss. Â You make as much or as little money as you want. Â As I previously discussed there are various levels of trading success and failure.
As they say it – you eat what you kill in trading.
You can try blaming other people, brokers, trading platforms, etc, but at the end of the day it is your profit and loss that matters and how much risk you took to generate that return and what future risks you are going to take.
You either know how to find the big trades, the big market moves or you don’t. Â You know how to trade them or you don’t. Â You are willing to risk some capital in the market or not.
You know Â how to manage risk or you don’t. Â You know how to cut losses before they spiral out of control or you don’t.
You know how to time the market or you don’t.
You know when a big global macro move is going to occur or you don’t.
You know how to avoid over trading or you do not.
You know when to go for the jugular or you don’t.
You know what truly moves the market or you don’t.
You know what the market is pricing in or you don’t.
You know what the thinking is of the person on the other side of your trade or you don’t.
You know the true reasons for what will cause massive order flow or you don’t.
You know when you are not in a proper emotional state to trade and should take a break or you don’t.
You work hard, and work smart on the things that can generate order flow or you don’t.
You know how to pyramid certain winners and place consecutive winning trades or you don’t.
You know why price is going to move or you don’t and rely on luck instead.
You either focus more of your effort on the chart or on the information that exists outside of the chart.
You either have trading success mindset and daily habits or you don’t.
You are either exploiting an inefficiency in the market or you’re providing the liquidity for those that do.
If you don’t have the above skills, well not to worry, for they all can be learned. Â They can be learned because trading is a meritocracy. Â You don’t have to learn them all, but I believe the more the merrier.
Lovely I tell you, trading is.