Trading is Winning and Losing game

Trading is just like a game where you cannot win always and you will lose. This is because your opponent will be much better than you sometimes and thus you cannot just outplay him. The good thing is always about playing so that the average of winning is always better than losing.

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Do you think that all the players in the game wins always, not really. They lose too, it is just that there winning game is much bigger and better than their losing game. And that's separate them from good traders vs the bad traders. Good traders are those people who wins big and losses small. There big wins is much bigger and better than their small losses. Whereas the bad traders try to average the losses and gets into more loss.

It's ok if your thinking is not matched with the market and you lose, it's just thar market is all about giving that chance to rectify. Now it needs time to be in the market to actually go through the trades and do winning and losses. If you are not a trader than you will always win with long term investment plan. Yes that's correct, if you buy and hold the good assets, it will appreciate its value in the longer run.

People usually show the traders as some great investor or who earns a lot. But that is not the case with most of the traders. They lose too, and only 1% of all the traders makes something big. And that's is true. Even though some traders gets profit that is marginally. Most of the profit a trader gets from his one or two trade in his 100s of other trades. People who can sustain for that much trade becomes the real trader.

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5 comments

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Trading needs to build trading psychology. In trading 10% is analysis and technicals, 90 psychology works.

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I think the goal is to try to win more than you lose and it is sometimes achievable over time. For me, I lose more than I win these days. But I guess it's the season we're in :)

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Trading is a big world.
Trading Stocks? Which markets?
Trading Commodities?
Trading Crypto?

I'm most trading US stocks and American Style Options.

Options/Futures are a zero-sum game.
The stock market can be wealth creation or wealth destruction. Much be depends on the underlying holding.

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