9/15/2007

Why do so many Traders Lose?

Losers Play the Wrong Game

Most trading is done emotionally charged where traders find themselves overwhelmed with information from all directions.

In this mood, you can feel out of control - not knowing where the markets and stocks will take you or do to you next.

Unlike the tech rally days, where winning was virtually effortless and all you needed to do was get on the bus for the ride, winning in the current market is rare.

Rather than winning a lot, you now experience losing a lot - for many, losing over and over, it seams, without end.

Or, if you are one of those who choose to stand aside, not really knowing what or when to trade, you find yourself bored, trying not to fall asleep at the keyboard.

And, at the center of all this disappointment, as you try for any bit of success, you often feel drained - stressed, too frequently getting upset, then angry.

Over the long run you begin to feel demoralized and deenergized - with a sense of embarrassment (as you think about how you will explain your plight to others you care about), feeling like you are a failure as you reflect on the past months/years - you frequently think, your dream of success may never be realized. Not a pretty picture. ______________________________________

The
Old School Trading Game: Listen to what I want you to hear: the old trading Game, as you and I know it, has gone the way of the Model A (Model A Ford, that is).

This obsolete trading game is used by all the losers (dissapointed, bored, and losers), as I was not too far back.

The old game is pervasive, and still very much relied on by losers, to perpetuate losing. The old game continues to be offered in all the day trading books, courses, seminars, and Web sites - you name it.

Traders relying on the loser’s game, particularly the new guys on the block trying to make a go of it in this business, are doomed to failure from the get go.

Yet
losers (innocently, stubbornly, and arrogantly) persist in playing an obsolete trading game - thinking, hopefully (as usual), that somehow they will be able to win again.

Losers are completely unaware that the trading game has changed to their guaranteed disadvantage.

Look at the markets, look at the price movements, look at your charts as proof. What used to work, traders trading against traders, doesn’t apply anymore. The markets are comprised of traders with their so-so software trading against sophisticated, quantitative software.

Under these disadvantaged conditions, the little guy has little to no chance of winning, making a living, by trading against the big money game.

The old school trading game, as you and I know it, is dead.

What’s the difference between winners winning and losers losing today?

Losers are blindly refusing to accept their fate. Losers don’t know any other way to trade, frankly. So they go on like morons. No offense, I was one for longer than I’d like to acknowledge.

Winners, on the other hand, own the game, every aspect of the game.

Winners know what you trade, when you trade, how you trade. Winners statistically/quantitatively program in your likely reactive attitude and mood (arrogance) and what you trade, before, during, and after each and every trade you make.

"How? "

Sophisticated, quantitative software

It's time (actually, long overdue time) for losers to wake up to what's going on around them, stop what they are up to, and then move on to find a real way to win.

It’s time for the confused, bored, and distressed traders—collectively called the losers—to change their game or quit the game altogether.

It’s time for change.

It’s time for losers to become winners — to find the
new day trading game.

Times demand a shift in perspective, a radically different approach, a new game winners play — to consistently win.

But, losers have no where to turn for help.

Not any more.

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