Holy Grail, Anyone?

What’s the big secret, anyways?

Secret to what?

You know, making big bucks and all…!

Why are you asking me?

You look like you know things, and you talk the talk, so I presumed you walk the walk too.

Well, now don’t be surprised, but there’s no secret.

What?

You wanna make big bucks?

Yes, yes, of course I do.

Ok, then first define your risk profile. Know how much loss you can stomach.

Oh.

Then trade.

That’s it?

When you trade, your money goes on the line. And that’s a game-changer.

Why?

Coz when your money’s on the line, your emotional framework switches on.

So?

That’s when you get to know yourself. That’s when you can define your risk-profile.

And then?

Just manage your trades properly, according to the rules of your trading system.

That’s it?

Yup, just stick to your system. Cut losses when they are small. Let profits run.

I’ve heard that one.

Then have you also heard that it’s very easy to say, and most dificult to follow?

Why’s that?

Because when your money’s on the line, it is most difficult to take any loss.

Right!

And when you show a small profit, you badly want to book it.

True!

Our natural instincts go against what we need to do to succeed as a trader.

I see now.

That’s why most traders are unsuccessful, and they eventually go bust, or quit.

Hmmm, dunno if I want to be a trader.

You could try your hand at investing, though. There, one proceeds in an opposite manner.

Hey, why don’t you tell me about it, like right now?

Maybe some other day. First digest all of this, ok?

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And Now for the Most Useless Question

For the trader, the most useless question regarding the markets is … …

“The Why of the Markets.”

Why is there a spike or a crash?

Frankly, who cares?

Just forget about it. The “Why” of the markets is baggage, it’s a load, and exactly this particular load needs to be abandoned.

When a trade is on, one’s got enough emotional overload to deal with anyways. Let the pundits bother themselves with this “Why”. It’s their bread and butter. Your bread and butter is the trade. Focus on the trade. Focus on entry. Focus on trade management. Focus on exit. Don’t focus on anything else. Blank the whole world out while you trade.

Then, when you reach home, focus on your family.

The Most Bugging Questions

Where is this market going?

Should one buy xyz?

What kind of volume do you trade?

What are your predictons?

Frankly, wrong questions.

One doesn’t exactly go to watch Formula 1 to then ask how many runs someone needs to make to win, right? Similarly, all the above questions are irrelevant to a trader’s success in the markets.

It doesn’t really matter where the market is going. A successful trade can still be found.

It doesn’t matter what one buys. If one manages the trade well, ultimately and overall, one will make money.

It doesn’t matter what volume you trade, as long as you have a system and stick to it.

And, a successful trader doesn’t predict the market. To succeed in the market, one needs to ask the market where it wants to go, and then one needs to go along with it.

The critically important part about trading is to put one’s money on the line, and to feel the emotional stress in one’s system that goes along with this. One needs to do this again, and again, and again, and that’s how one learns trade management. No books can really teach this. One really needs to go out there and do it.