It doesn’t get easier, you just get better. Or do you?
It doesn’t get easier you just get better. That’s a phrase often used in professional sport but when it comes to trading the harder you try, the more hours you watch the charts doesn’t necessarily mean you will get better at trading. With trading, it’s about understanding how to replicate an edge again and again with good risk management.
As time goes on you are either going to get better or worse at applying your edge. It’s black or white you’ll either be making money or losing money and if you are losing money it will be because you are continually switching edges and not applying sold risk to reward on your trades. Making money is a simple process of replicating an edge but it never gets easier and you will never be able to pick the winners, it’s a game of probabilities that requires you to win more than you lose and replicate it again and again.
Why can’t everyone do it? It’s because the outcome on each edge is random and you don’t know which trades (your edge) will be the winning ones and which ones will be the losing ones. That’s why trading is emotional for people because they feel like they’ve tried hard, worked hard on “getting the system right” and when it presents on the screen they expect certainty. Certainty does not exist, probability is what exists and unless you can learn to deal with random probability and let go of certainty you won’t likely get better as a trader. Apply a simple edge, ensure it has solid risk to reward and focus on replicating the edge over 50 trades. You will then have something that you can measure the success over a series of trades and look to see if you can improve the edge and money management.
One trade at a time. Go get ’em!
About the Author: Andrew Barnett
Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts, and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular key-note speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).
If you would like to speak to one of our Senior Client Advisors regarding the relative client opportunities offered at LTG GoldRock and how you can follow along with our Professional traders each day in our live trading room please contact us today or you can register for one of our a live coaching and trading webinars by clicking here.