Traders always hide their failures and brag about their success.
Talk to any trader, go through the social media posts, switch on the television, read the magazines or paper or most books and you will notice that everyone claiming to be making profits.
I myself get so many messages from various analysts and brokerages saying that they will give sure shot trading calls which will earn me fortunes and make me rich overnight. They send me their trading stats showing great profits. The calls they had given made so much money.
What Is The Purpose?
The main purpose or intention of these technical gurus come to the surface later. They either want you to subscribe to their daily calls to make profits or they want you to open an trading account with their house so that they can earn commissions. Some will even teach you Technical Analysis for a fees.
I am not claiming that all are the same but most them who claim to give you huge profits are fakes looking to make a few bucks out of your pockets. Nobody can be 100% correct in timing the markets or predicting them but of course you can ride the trend or use the volatility to make profits.
If your win percentage is higher than the losing ones, then you will be in profits. If you learn to cut your losses early and ride your profits long, then you will stay on the profit side.
If fear grips you or you get greedy, you are bound to lose today if not then tomorrow.
Traders always brag about their success and hide their failures because it is normal human nature. So when you do business, always select the person or company with caution. I always select those who never shy away from expressing their weakness or disclosing their wrong trades/failures. It is not necessary that they disclose all details but accepting failures is the first step to success.
Success is always a little farther away than it looks and failures are a little closer than they appear. My intention is not to de-motivate you but the reason is to put across the point that success does not easily. You need to work hard, keep learning from your mistakes and stay disciplined.
In stock markets, success does not stay for ever so you need to preserve what you make and lose as little as possible. Many people fail after they have tasted success. The reality is that the markets are very harsh and a misstep will lead to the fall.
It is always good to taste failure at the beginning of your trading careers because once you have tasted failure, you will learn from you mistake and if you do take the lesson, you are bound to fail. On the other hand if you successful at the very beginning, it will lead to complacency and one might start thinking nothing can go wrong. This leads to doom.
I have seen many traders getting wiped out of their capital and it is as recent as 2008 and also 2020 (the corona virus effect). The markets did not crash in 2020 but the steep correction that we saw, kicked out many traders off the markets.
Remember that it is easy to brag about success by showing charts after the market closes but it is not easy for them to show us trades in live markets. What I am saying is that it is easier to show winning trades in the middle of charts than the right edge of the charts. So it is always suggested to paper trade your strategy or system before you jump into the real game.
It is easier to point out the rights and the wrongs and also give suggestions after battle is over. It is completely a different ball game making decisions in the middle of the battle.
Always keep records of trades starting from why you went long or went short, mark the point on the chart where you took the trade, write down the reasoning, note the exit, mark the exit on the chart, note the reason for exit and keep a follow up on what happened after exit and also your profits and loss.
This notes will be your guide and reference for your future decisions and trades. And believe me, if you are able to do this, it will play an pivotal role in your success as a trader.