10 Reasons Trading is So
Difficult
April 27, 2015 by Steve
Here is why trading is
so difficult:
1.
You can back test a
system as much as you want but when you start trading it the profitability will
be determined by the market conditions not past price history. What looks great
on paper can lose on a lot of consecutive trades right at the start.
2.
Your stop can be hit and
then the market go in the direction you were positioned for.
3.
Sometimes that pullback
that you are waiting for to buy never comes until the trend is over.
4.
Sometimes every momentum
signal you buy will be a loser for a long time.
5.
Many times the market
whipsaws you in a position for absolutely no reason you can understand.
6.
Sometimes your biggest
position sizes are losing trades and your smallest position sizes are the
winners.
7.
There is no ‘market’ you
are trading against a herd of people all making decisions for many different
reasons, and they are not predictable.
8.
You can feel foolish
under performing buy and holders during straight up bull markets when you’re
trading in and out.
9.
Some trading lessons
can’t be learned they have to be experienced with real money.
10.
Money is made and kept
based on the math of probabilities, risk, and reward not because a trader is
the smartest but because they are the most flexible and adaptable.
