Just give a few seconds to think about who you are up against when you trade.
In effect, you are competing against the rest of the market.
There will be many people like you—hundreds of thousands, probably millions in total—including some with less experience and many more with greater expertise.
But it doesn't stop there; that is the retail army. There is also the professional side: full-time professional Prop Traders, Hedge Fund Titans, Investors, Asset Managers, and the world's top Investment Bank traders.
Some will be like you, trading against the market, but others will be on the opposite side, making the market. - They have capital, know-how, knowledge, technology, research, data, experience, power, and an edge. YOU are up against these entities.
You might get lucky—randomness often plays a part—but in the long run, randomness evens out. You may find yourself riding a bandwagon that many of the older, wiser traders are avoiding or even puzzled by, choosing to stay out of it. This is something experience has taught them. So yes, you may have seemed like a genius for a while, but bandwagons—except for one or two very lucky or highly astute exceptions—do not constitute a strategy.
So, yes, this is who you are up against—daily, weekly, monthly. And not individually, but collectively.
These players are looking to take your money, your pot, your earnings. They are waiting for you to make an error, to slip up, to spiral out of control, to go on tilt. They want to own you and what you have. They need you to screw up—to overcommit, hesitate, doubt yourself, blink, lose confidence and faith. They need you to bring your ego into it, so your process gets compromised. They need to abandon sound principles of risk management. They need you to undersize and defer when you have an opportunity, it lets them off the hook.
Your sub-par behaviour ensures that some of the what you have goes to them, and what they hold that you might want, isn’t leaving their grasp.
Every day you enter the market therefore you need to be at your very best—present, focused, ready, with purpose and clarity.
You need to know your intent, what you want to do, and how you're going to do it. Then, you must follow through—resolutely, consistently, robustly—each and every day, every second.
If you're not right for it, fit for it, ready for it, or up for it—don’t go in. Step back, step away, take a rest or pause. Because any weakness, and ‘THEY’ will pounce.
Think of it like a sports match: if you have an injury, an illness, or just aren’t in the right frame of mind, you don’t play. If you do, you’ll almost certainly get smashed and may even worsen your injury, illness, or situation—compounding the damage further.
Trading is not just a game; it’s life. Take it seriously. Treat it seriously. Be prepared. And more than anything, know what you are doing and how you are going to do it. The predators are hunting, waiting to take you apart.
Have fun!!!!