Why Trading Is Hard

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Why Trading Is Hard

Why Trading is Hard

It is important to understand why trading is hard for many beginners and novice traders before opening the first position. In fact, the truth cannot be ruled out that one needs to work hard to become a successful trader. Simultaneously, it is to note that trading is equipped with several frustrations and setbacks initially.

There are various reasons why trading is hard and difficult. The market is always pregnant with unpredictability and irrationality. Both good and bad luck exists back-to-back. However, the biggest obstacle is internal. One needs to learn and relearn to gain ample knowledge. It is simultaneously important to understand what to do and what actually to do. These two terms are two different things. The two are not alike when the market is highly volatile and trading conditions are changing at a fast pace.

Traders often get into undisciplined trading rules and blame other factors for failed trades. This is the reason it is always suggested to have a rigorous trading discipline and it may be hard to follow though. It is important to apply the discipline for a long period of time to get a positive result.

Getting hooked into a strict trading discipline requires clear rules. Many avoid and never establish clear rules in the first place. The disciplines are usually of general nature like not letting drawdowns exceed further from a certain level or avoiding buying at lows.

The rules should be reviewed at regular intervals as some rethinking is required based on the market conditions. The revision is a part of trading methodology or strategy. It is always suggested to use risk management tools to avoid risking more than one can bear.

Breaking the rule or becoming undisciplined may cost havoc. It may turn in disastrous and financial loss. Reviewing trading on a daily basis is a better practice. The easiest mistake is to ignore the stock that is not acting just right. It may turn up a costly mistake.

Starting fresh at any time is possible. One should have the ability to start fresh at any time. Simply get back to each bought stock and apply some fresh trading rules. It is important here to forget what happened to the stocks in the past. One should focus on correcting discipline.

Search for new ideas and trading approaches should always be on the card of daily routine. If these are followed along with discipline, the probability of getting good returns increases.

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