The market is literally designed to take money from the masses over the long term. Period.

The amount of people who can make money over 1 month, 3 months, 6 or even 12 months is impressive.

But why can’t they keep doing this? Why do these same people quit trading a year or more after doing this?

The reason comes down to a linear approach to trading.

You see, anyone can make money in the market over a shortened period. Whether it’s the strategy they’re using having a purple patch; catching a great trend and buying every dip, or a choppy market that is perfect for the trader who keeps fading every short move.

The problem comes when the market conditions change.

The trader keeps on doing what they did previously, and this simply loses them money. This is not a problem. A good trader will recognise this and simply trade through it.

The masses, however, will start tweaking everything they were doing and succumbing to the emotions of fear, frustration, revenge and ultimately depression.

At this stage, the market has won. It has taken back their gains and created so much self-doubt that the trader either keeps trading badly and handing cash to the market or they will give up entirely…

A good trader will build soft skills that help them through periods when the market is testing them.

They are humble enough to always respect the market.

A trader that tries to ‘revenge trade’ out of a losing period will always end up in a world of pain. But, a little patience and acceptance that the market may not always be aligned with what we want from it, and with always respecting the market, will ensure the trader is around for the long haul.

This trader will be better placed for their next purple patch and able to deal with future periods where their approach is not working for a period…

Having the self-belief (without being outright arrogant) will ensure this trader is confident enough to deal with the curve balls that the market will throw at them.

After all, if you can ride that bucking bronco that is the markets and come through with just the occasional light bruise, you will be able to navigate your way through any market condition in the future…

Until next time

Charlie