In this video we cover the reasons you need a proper plan and trading strategy.
It is common amongst newer traders to want to take the easy route.
This kind of approach is hardwired into most of us.
Think of these examples:
When we purchase a new appliance, do we read the entire user manual?
Of course not.
This Kind of behaviour is commonplace.
It is habits that we have formed as humans.
We make a lot of presumptions.
The reason for this is there is quite often to many factors to consider.
Facts are irrationally solidified in our minds based on emotion.
Now when you take the above example of the appliance what’s the worst that could happen?
It may not work correctly; it may even break but that is unlikely.
So, the risk in the approach is played down to the point we hope for the best and see what happens!
Lets now take that approach over to the shark infested world of trading the financial markets!
I say shark infested let me elaborate.
Trading the financial markets is difficult.
It requires continued focus and effort.
You are required to be diligent and disciplined.
It has some of the richest people in the world participating.
Also, Some of the smartest.
It has Computers that are faster than you built by genius mathematicians. (quants)
So, if you take that bumbling hope for the best approach to learning to trade without a proper strategy and plan what do you think the chances are you will succeed?
That’s right you’re highly likely not going too!
The biggest mistake most newer traders make is anchor to the belief in something works when it doesn’t.
This may be that they have been with an education or service for some months and are not getting anywhere.
This is the tricky point for that individual as they must now admit that they are wrong!
It is compounded by the fact they have spent lots of money to obtain value.
Ego and pride may get in the way and they refuse to be told they are following down the path to being wrecked all the while paying some service for the privilege!
Our humble advice.
Never worry about admitting you made a mistake.
A mistake is just a set back on the way to success.
This approach alone will aid your mindset in becoming successful.
You need a strategy and plan to be a successful trader
Enjoy the video!