ERROR #3: FOLLOWING THE GENERAL PATH.
Most of those new traders out there will lose their account soon.
Statistics are clear. Some brokers say 70%, others up to 90%. If that’s true, why do you think you are going to perform better than most of the retail traders? What makes you different? Hopefully, after this post, you may know that the path new traders walk, is not the correct one . At least you will know that you need to do things different to get different results.
Let me share the path to trading success that is generally taught everywhere. Maybe this is your own path. Read until the end, please. This is a very common error.
Let’s become successful traders
- You need a winning strategy. There are plenty of them available, they have been tested, they work. However, you backtest and forward test it yourself. You master it in DEMO. After one year, your DEMO account shows profits, you are ready to jump into REAL.
- Apply what you mastered in DEMO. You have experience now and profits should come sooner or later. It’s a matter of time.
- Something is not working. Your REAL account doesn’t grow as the DEMO one.
- Maybe the strategy doesn’t work anymore, or needs some kind of adjustment, time to stop, before your account vanishes.
- Sometimes you put the blame on the Broker.
- If you didn’t burn your trading account by then, you may look for another strategy.
- You find yourself at the beginning ot he path, backtesting a new strategy, the cycle starts again, and again, and again…
Can you relate? If you are still reading this post, means that you have been already there, or have decided not to make the same errors that most of retail traders make.. Don’t worry, don’t feel bad. I have been there too. Hopefuly you are already on the right path without knowing it.
In the whole process detailed above there is one piece that is missing.
Imagine two traders, same strategy. No matters which one. As we have already said, there are plenty of them, proved to be valid and profitable for years. Same account size. At the end of the year one of them has made 15% profit, whereas the other one has burnt his account or has a 30% drawdown. How can this be explained?
The missing piece, is obviously YOU, the trader. You forgot to put yourself in the path to the success. And you are the most important part of the plan. Believe me, the strategy is never the problem, it is the trader. We are all different, therefore there are also thousands of reasons why the trader fails. We know some of them, like not respecting your rules, wrong money management, overtrading, lack or excess of confidence, missunderstanding of the leverage, wrong mindset… Today, we are going to explain probably the most important of all the posible errors: Not including the trader in the Sucessful trader recipe.
Let me share a path, where the trader is part of the process.
Let’s test ourselves as successful traders
- You need a winning strategy. This step is the same. You master it in DEMO. After one year. At this point, I would advise you to invest on education to accelerate your learning curve. Once trading becomes boring and repetitive, you can move on to REAL.
- Apply what you mastered in DEMO. The trader needs to continuously apply the rules without exception. Analysis, entry, exit, protection, money management… a trading journal will help to monitor the process.
- Your account doesn’t grow as the DEMO one. Review your rules, your mindset. Calm down and focus on yourself, check what has changed from DEMO to REAL.
- Your account grows, your drawdown is under control (<15%).
- Great! Keep doing it for at least one year.
- Now you can start thinking of making money by trading a REAL account.
Remember we are here to help, if you want our advise feel free to contact @Chusssss or @chuslaptop in Telegram and we will try to help you in your trading career.
In case you want to learn to trade the markets with us, remember our next edition of the ATA Course will start in July 2022, you can book your seat now by registering in the website, once the enrolment starts, we will send an email to inform you about it. We love privacy, so we will never share your email with any company, or spam you with emails. In fact, we don’t have any subscriber or newsletter option, so ensure to read our Telegram channel to be updated regarding new posts.
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