Everyone who enters trading is exactly the same, and tends to stay the same for a long time.
This is the result of a lack of discipline. It’s the main reason traders and investors don’t succeed in their quest to make money in the markets, as I wrote in Part 1 of this series. Most people seeking to lose weight fail for the same reason.
Here is the No. 2 reason most investors don’t succeed: Lack of focus or inability to focus.
Yes, all of these topics are somewhat interrelated. But they each also have their own merit. Discipline and lack of focus are not the same thing. You may not have focus due to a lack of discipline, but you may not have focus by design.
Many traders come to the market with the view that they have to master everything. They feel they need to learn about economic data, currency rates, foreign politics, and the list goes on. When traders learn technical analysis, they feel the need to put everything to use.
I have seen trading plans that have 10 different trading “strategies” spelled out for a new trader. Far more important than a “strategy” is a method.
We often make trading far more complicated and difficult.
Yes, there is a lot to learn when you start trading.
But learn from those who are:
- Disciplined and
Who is that you ask? Where do I find such a mentor for trading focus?
I’m hoping that through Chart Trader ̶ and my monthly trading events ̶ I’m able to help you become a better trader.
Remember, focus on one thing to make money. Perhaps two, and over time even three.
Learn them all at once, become an expert one at a time. It’s no different than going to school. You need to learn math, language and all that is taught. It prepares your brain to continue learning and much of that information is needed.
However, to make better than average money in the workplace, you have to specialize in one thing. And to make big money, you ONLY have to be an expert at one thing.
Until next week, when I will discuss the third and final common reason traders and investors fail.
Send me an email at [email protected] and tell me about your discipline issues. I’m curious to know what’s holding you back (and yes, I will respond).