Trading Is Simple, But Not Easy
A lot of traders assume trading is easy. Just follow pre-determinded trading plan, waiting for some time, and then make profits. The fact is: Trading is simple, but not easy. Simple and easy are often used interchangeably. But simple and easy are different words with different meanings. Traders should understand the difference between simple and easy. It matters to traders a lot, because this understanding will determine your mindset on how you look at trading.
TRADING IS SIMPLE INDEED
Trading process is indeed simple. What traders do is fairly simple task. Just analyze the market, set up order, and stick to the trading system until making profits or cutting losses. Simply put: trading is disciplinely follow the trading plan.
WHAT IS SIMPLE IS NOT ALWAYS EASY
What we fail to take into account is that just because it is simple in theory does not mean it will be easy in practice. Consider the issue of weight loss. Losing weight is simple in theory. You just have to reduce calorie intake or increase calorie burning. You either eat less food or exercise more, or do both to lose weight. It really is that simple. All the issues around carbs, fats, and the best types of exercise are just details. Yes, understanding the details right will allow you to lose weight quicker and more effectively. But at the end of the day, weight loss is about eating less food and or exercising more, then you can be successful in weight-loss.
Despite the simplicity, losing weight is one of the hardest things to do. Every day, thousands of people go on a diet… just to give up a few weeks later. The idea of eating less and exercising more sounds simple but, if it were that simple, why can't we do it consistently? Because the mind is weak. One minute it’s excited and pumped, the next it’s indifferent and exhausted, reducing your ability to do even simple tasks consistently.
WHY TRADING SUCCESS IS SIMPLE BUT HARD TO ACHIEVE?
Becoming a successful trader is a lot like becoming a successful weight-loss story. They both involve doing things that are simple in theory but hard in practice. Successful trader involves analyzing the market on a regular basis, setting up order, and consistently following the trading system. It really is that simple. Yet most traders fail because they can’t stick to their own trading system. Eventually they stray to give way to bad habits, like buying based of greed, closing position early because of fear, using too much margin, or doing revenge trading after losing.
WHAT DOES THAT MEAN FOR THOSE WO WANT TO SUCCEED AS A TRADER?
The lesson is that you should not confuse simple with easy. Trading is simple, but not easy. Most trader won’t succeed because they’re unable to do simple things over extended periods of time. If you just stick to your own trading system long enough, you'll beat most traders. Traders with "trading is easy" mindset will have rich quick mentality. This kind of trader will eventually going broke in long run. Instead, understanding that trading not an easy task will encourage you to be more willing to learn, be more careful and prepare better when trading.
Hope this article inspires