I have just placed a trade, now the market is turning against me. Sound familiar? Then this is for you.
Why is the market turning against me? What have i done wrong? is trading just not for me?
A lot of you have asked this question before, and wondered if you are cut out to be a trader, or if you should even continue your career in trading.
Now, to be honest, trading is not for everyone, anyone can't be a trader. Using our logic, if it was so simple, everyone would be doing it, right?
The hard truth is that most traders (on avg 90%) lose money in the markets, bleeding their accounts, every single day. It makes you wonder how you should go about trusting a YouTube Guru, or YouTube Mentor.
Well, a tiny percentage of YouTubers are in fact institute traders a.k.a Professionals in trading instruments, while not everyone can become a professional trader, the existing ones can assist via their channel and some master classes others can try out.
Most retail traders Trade the market based on some indicator crossing this line or this level, or a support level hitting here or a resistance hitting there, just find out afterwards, it was in fact a luck shot, or they didn't succeed at all. Market makers (Major banks) control how the game is being played, and how market players will operate, if you don't understand that yet, you're out. Running to YouTube will overwhelm you with 1000's or even 10's of thousands of videos, So to say self proclaimed Gurus and Professional losing traders using Game guardian or some other screen manipulation tools to get you into believing their profits are real and legit, and each one has their own way of looking at the markets, but in reality, 90% + of those traders are mostly the same, and 90%+ of them also browse YouTube for some Holy grail like the others, so its a line of sheep, one following the other but no one actually knows where they are going, except for noticing all the deposits into their trading accounts, with a tiny luck shot withdrawal here and there.
This is what separates the professional world of trading from the retail world. In the professional world, we listen and get trained by well educated mentors who has a proven verified track record, who has been around the block, managing large portfolios for years, and has proven that their discipline works.
To become a Professional trader, or institute trader, you will need some education, either in finances, Engineering or other qualification.
The same reason we go to school, is the same reason a lot of institutes prefer people with some kind of qualification. And that reason is " brain development". While some may not agree with this, it is important to understand that we all were clueless and wrote our first words on paper, and we all saw other kids not catching on as fast, later we saw some of our friends dropping out of school, university.....some didn't have a choice, some did.
And there we can see it now....Those who pushed through are more likely to be conditioned, and mostly has higher discipline, iq and clearer understanding about how things work. And like the saying goes " the proof is in the pudding", this is exactly what we see on most trading floors internationally today, "the proof".
When it comes to most YouTube traders, mentors, self proclaimed gurus etc, we see that they are mostly flashing profits, attracting more sheep, and while they know they are not profitable, they still keep to the story that they are. But in fact, its only an income from YouTube that supplies them with capital to fund their accounts, after they have attempted trading the markets multiple times, even years, yes they will bleed their accounts over and over for years, and still reject assistance from someone that has the knowledge. Their excuse, "I have my own strategy, and i trade it"
("Trading is tough, and not for the feint hearted. It involves risk, and has no emotion. The market does not care if you win or lose")
Here are some reasons you might be one of the people, executing a trade, and the market runs the other way.
Market Volatility: Financial markets are inherently volatile, and prices can change rapidly due to various factors such as economic data releases, geopolitical events, market sentiment shifts, and unexpected news. This volatility can lead to sudden price reversals that go against your trade.
Unforeseen News or Events: External events, such as company announcements, government policy changes, or global economic shifts, can significantly impact the market and cause sudden reversals. These events may not have been anticipated when you entered the trade.
Technical Levels: Traders often use technical analysis to make decisions. If a price reaches a significant support or resistance, supply or demand or price mark-ups or mark-downs, it can lead to price reversals as traders react to those levels.
Market Sentiment: Investor sentiment plays a crucial role in market movements. If a prevailing sentiment changes abruptly, it can lead to a quick shift in market direction, impacting your trade.
Stop Loss Orders: Some traders use stop loss orders to automatically exit a trade if the price reaches a certain level. If a significant number of traders have placed stop loss orders at a similar level, this can trigger a cascade of selling or buying activity, causing price reversals.
Profit-Taking: After a significant price move in a particular direction, some traders might decide to take profits, leading to a reversal in the opposite direction.
Liquidity Issues: In less liquid markets, relatively small trading volumes can lead to exaggerated price movements. This can lead to unexpected reversals as the market adjusts to new orders.
Market Manipulation: While less common, market manipulation by large players, institutions and banks can cause temporary distortions in prices and lead to reversals that may not align with fundamental or technical factors.
It's important to note that trading involves risk, and even experienced traders can experience losses. It's crucial to have a well-defined trading plan that includes risk management strategies like setting stop losses, using appropriate position sizes, and diversifying your portfolio to minimize the impact of adverse market movements. Additionally, staying informed about market news and events can help you make more informed decisions and react more effectively to sudden changes in the market.
Enjoy..
