I was approached by a trader a couple of days ago distraught with the losses he’d incurred over the last few months and years. He came to me after finding me via Twitter and reading my blog, seeking guidance on process and most importantly removing emotion from trading.
We jumped on Skype together and his first question was, as the title of this Email would suggest, “Is trading a scam?”. He told me that every time he seemed to either execute a trade, close a trade or re-open a trade the market would go against him. He’d convinced himself that brokers were all a scam, all setup simply to take his money. He believed that whatever position he opened, long or short, the trade would be a loss no matter what.
And if a trade moved in his favour? He was so frightened of then losing the very small profit he was finally looking at, he’d close the trade before his target was reached. Emotional decision after emotional decision, destroying his trading results and slowly blowing up his second trading account.
A quote from his Email to me; “Honestly Will, is it all a fix or do people really make money trading?”.
To assure him it is possible, I showed him a few real Emails and Twitter messages from traders I’ve worked with [Some of which are here on my blog] including a trader I taught my GBPUSD strategy to recently who make +6R in 4 consecutive days trading with a +1.5R target each session, telling me how well he was doing and how pleased he was. A real person, a real Email. Black and white proof that yes, you can make money trading. Anyone can if they manage emotion and trade a strategy that is proven to produce results.
“So what’s the answer?” He went on to ask …well, for me and every single one of the traders I’ve worked with so far in either mentoring or sharing one of my strategies/processes, the answer has been the following;
Applying rules. Trading mechanically, completely removing emotion from the equation.
See, when you have a black and white, statistically proven process with trackable, testable data that backs up each action and outcome, you know exactly when you’re doing the right thing and more importantly when you’re doing the wrong thing. There’s no question. Did you execute [effectively, with precision] in line with your strategy? Yes or no, it’s as simple as that. If the answer is yes, across a large enough amount of trades you will profit. And if the answer is no, you know exactly why you aren’t seeing results, and the best part is, because we have rules you can zero in on exactly where you’re going wrong.
Discretionary trading is fun and watching a flurry of traders make predictions online is exciting, but it’s completely unreliable and as the statistics show, a vast amount of these traders fail. If not quickly, eventually. Whereas mechanical traders don’t make predictions, we simply trade recurrences that we have discovered within markets, utilising data and statistics to aid our execution and our results are proven, black and white, and can be applied by anyone.
As soon as I began trading mechanical strategies, those being my GBPUSD, DAX and D1 Swing strategies, my trading completely changed for the better. There was no more guessing, no more predicting and no more worrying…
After all the days, weeks and months of stress, disappointment and constant hard work that I’ve put into my trading business [If you follow me on Twitter you’ve seen how many spreadsheets and data sheets I’ve laboured over], honestly, trading has never been this easy, consistent and stress-free.
So if you find yourself in the same position as the trader I was approached by, or hell, you’re currently where we’ve all been and you’re working hard but emotion is holding you back, I’d implore you to either research mechanical approaches to trading or take on a mechanical strategy because it might just change your trading the way it changed mine, finally resulting in a structured, black and white view of the market/s you trade and the confidence to follow a proven strategy and process.
If you’re interested in learning more about my strategies, click here, or if you’d like to know more about how mechanical strategies work, or maybe you have questions you’d like to ask, feel free to Email me.
I’m always here and happy to help and/or answer any questions.