My mail box is full of trading claims, advice, predictions, solicitations to help, and “sure thing” trading system vendor’s claims.
They all have some things in common and read alike…Perhaps your inbox is also filled with these words:
1. How to profit in any market using the award-winning software….
2. Learn to Consistently Execute the Right Trades.…..
3. Get a system to gain an edge in the markets along with a fearless approach…..
4. Reach your peak performance using advanced techniques ..become a more consistent trader using the XYZ to Win software….
5. Join noted charting guru Mr Trading Master with his important trading weapon, and Quickly Find Early Reversals
6. know exactly when to enter, exit or stand aside
7. Uncover profitable strategies to help you make more money
8. Time Your Entries and Exits with Swiss Clock Precision
9. Identify Low Risk Set-Ups and Control Your Exit Strategy
10. Trend forecasts that are up to 86% accurate* for 1, 2 and 3 days ahead
11. Using XYZ System to Determine Whether the Current Move is a Correction or a Change in Trend
I have a Lot more….and could fill many pages with such claims. But why bother. I think you get the drift.Wow! Why are we not all fabulously rich by now?
I Know, that there is a 90-95% probability that none of that wonderful stuff will work for me or any one else out there. The reason is simple…..about 85% of all the traders out there use these systems and about 85% of all the traders consistently loose money trading the markets. The simple truth of the matter is that none of the systems can consistently make money in the markets, and sadly, technical analysis used incorrectly simply does not work. It is a placebo. The markets are near sum total zero, no new money on any scale is ever added to the overall trading pool quickly. On a short ( and trader relevant ) time frame, the markets are a closed system. Every one simply cannot make money all the time in the markets. Someone has to lose in order for someone to profit. So, you may ask, is there such a thing as a true trader’s edge?
The answer is yes, without a doubt!.
But before we get to the “answer,”, we need to explore some of the most damaging and deeply entrenched “market truths.”, those lies which have enough truth in them to consistently confuse and mislead the traders.
One such extremely damaging “truth” is “trend is your friend.”……. Simply put, without considering the timeline, time frame, account size, and the risk management trading parameters, an individual trader’s psychological profile, emotional triggering patterns and finely the definition of “trend” itself, ……. MOST DEFINITELY ”Trend trading” will not lead to a friendly experience. The whole notion of a “trend” is very dubious at best. For a deeper look into the usefulness and practicality of trend trading, one needs to see if there is anything useful and practical the trader can extract from “trending” markets ……..to read more please follow the future posts.
Note: I said I will explore some of the myths… but I have only given one… I will add more regularly.
Which leads me to the very purpose of this site and my offer…
My purpose is to facilitate the development of new market trading concepts to improve the experience for trades.
I will explore the trading decision making process further in my blog on traders self care….