Trading is a difficult endeavor. It takes experience and a sound process to help you understand when to get into a trade. And when to get out of a trade.
But perhaps even more important is the mental discipline it takes to follow your experience (gut) and process.
Here are 10 reasons why trading is a difficult endeavor:
1. It is hard not to trade too big when you really believe in a trade entry. It is even harder to take a big loss if it goes against you.
2. It is hard to keep taking your entry signals during a losing streak. It is also hard to miss a signal and watch it go on to be a big winner.
3. It is hard not to add to a losing trade when the price keeps looking better as it falls lower and lower. It is hard to be on the wrong side of a trend.
4. It is hard to buy a breakout in trend because it looks too high. It is hard to miss out on the beginning of a big uptrend.
5. It is hard to cut a loss early with the ego wanting to be right about the trade.
7. It is hard to buy when everyone is fearful and hard to sell short when everyone is greedy.
8. It is hard to trade through different types of markets, bull markets, bear markets, volatile, trending, and range bound because the rules keep changing.
9. It is hard to convince your friends and family that there is a process to your trading and that you are not a degenerate gambler.
10. It is hard to ever quit trading after you have tasted how sweet a big winning streak is and how life changing it can be.
More from Steve: 10 Ways Traders Lose Money In The Market
Read more from Steve on his blog NewTraderU.
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.