Here are ten trading truths you have to come to terms with and overcome to trade profitably long term.
- The markets change, all signals do not work in all markets. What worked in a trending market may not work in a range bound market.
- Bear markets and corrections will try to take back a lot of your profits you made during bull markets and up trends through the downtrend and the volatility.
- You will wish you had more position size in a winning trade.
- You will wish you had less position size in a losing trade.
- Price action will look obvious on historical charts but be cloudy on the current chart.
- Hindsight will make you believe a good entry was a bad entry when the trade goes against you.
- You will blame yourself for losing trades even when you followed your system and plan.
- Drawdowns in capital will make you want to quit.
- All time highs in trading capital will make you fell smarter than you actually are.
- The impulse to trade too big will always be present like an old addiction that you have to fight.