Now, humans are almost hard wired mentally to not want to lose things. Losing something = Bad to our subconscious.
Yet, accepting losses is a requisite to good trading. Trading goes against human nature in many ways, especially on a psychological level.
Those that desire to maintain a personal image will avoid disclosing things that will make them seem inferior to fellow humans. I am guessing we each have several personal images to maintain such as “real”, “online” and “Public General Everyday”. I will not go into detail of how the brain works here, so anyone interested should search on google
Just a simple example, when a trader is asked, ‘Are you profitable in trading currently?’
How should the trader respond? Of course the trader has the right not to answer the question. I would have preferred the trader answered honestly, without the need to go into details.
But what does it says here? The person who is asking about it will not be able to know for sure whether the trader is a profitable or a losing trader. If that trader is at the same time giving advice and teaching strategies on trading, but could not even confess his performance level in trading. What does it say about the trader?
This applies especially in trading forums. It is important to know whether a trader giving advice and teaching strategies is trading profitably.
A lot of traders has the misconception that if they tell the truth about their trading performance it would make look bad / silly. I strongly feel that truth and honesty is way more important than one’s ego / ‘face’. Truth and honesty is what is seriously lacking in the trading industry, ranging from retail up to teaching gurus level.
My most important point ->
A losing trader does not equate to a bad trader. It’s just a simple fact that trading is extremely difficult. There is nothing to be ashamed of to confess that one is not making money from trading. Like come on, 95% of all retail traders are also going through similar thing.
A losing trader can know a lot about trading, and has tons of experience to share. He knows what to do and what ‘not to do’ in trading.
The reasons he or she is not making money might be because of simply consecutive wrong predictions about the next market movement (leading to bad entries, missing trades), and not getting net profit due to poor R:R; not because he is bad at trading.
There is also a poor understanding by what it means to be “bad” in trading.
A bad trader is a trader who
– trades with emotion
– trades like gambling
– never try to improve or learn from mistakes
– trades big
– let losses run into huge losses
– take profit way too early
I do not see myself as a successful trader. However I do not see myself as a bad trader either, as I always do my best to practise good trading habits, like risk managing, position sizing.
Know the distinction between a bad trader and a losing trader.
A losing trader can also be a good trader
A losing trader who is a good trader is totally qualified to give basic general advice and teach strategies to learning traders.
Finally, why should someone use their time to write about how “bad” or “unprofitable” trader they are? For those that have come across mindsets for this industry, they will generally not think this way. Also, they are not accountable to random strangers online.
My view: We shouldn’t care or we shouldn’t seek how profitable someone is when it is not important to us.
I have already explain bad and unprofitable are not the same thing.
Reread the earlier parts.
I feel more comfortable conversing with people/traders who are open about their performance and have nothing to hide, irl and online.