Trading can get a bad rap at times. But anything that takes time to learn, any skill that can be acquired, and any goal that one looks to achieve will take practice and perseverance. With trading, individuals who typically talk about it in a lesser light haven’t tried it or tried and failed without ever retrying. When you first learned to tie your shoes or ride a bike, you didn’t quit after your first failure; you kept trying until you succeeded. This is the mindset that should approach trading. Apiary Fund and Shawn Lucas help individuals learn from their mistakes and how to turn the negatives into positives.
The biggest mistake new traders make is quitting. Trading is a skill that requires a lot of practice to get to a consistent and profitable level. Traders must have the time to learn the skill to utilize it full time. Many think that they can just leave work and trade full-time because trading sounds easy. This is not the case, and the most common deterrent for new traders getting started in the markets. To start out as a new trader, you have to ease yourself into the markets. Most people need a job while learning to trade at first. Then, once the skill is acquired, you can switch jobs. It’s just like working your way through college: Not everyone has to do it, but most do to afford your daily needs while learning a new field you plan to work in.
Other mistakes that many traders make when starting is thinking the need to over-analyze in the markets. When traders start, a common mindset is “more indicators means more and better indications.” This is not the case most of the time. There are times where all 5 or 6 indicators on your chart line up and the entry looks fantastic, but even then, the trade can result in a loss. And when all the multiple indicators don’t align, traders will think that it is not a good trade and miss out on good profit margin due to lack of confirmation. When you watch professional traders like Shawn Lucas trade, you can see the simplicity of the charts and the minimalist tone it takes. There's the common adage, “less is more,” and trading is no different in that regard. Traders need to find a simple system that doesn’t distract from what is going on in the markets.
A third downfall traders face is revenge trading and overtrading, especially when starting out. Traders often will overtrade with the “never leave a burner” mindset or revenge trade to make up for a loss. When it comes to both of these, the outcome is usually pretty similar, too many trades are placed and emotions are where they should be when trading resulting in a loss. Setting a goal for wins or a limit for losses where you stop trading as to not overtrade and lose your wins and to not bury yourself in an emotional tailspin of losses.
All in all, finding a strategy that works from you and plenty of practice is what leads a trader onto success. Traders like Shawn Lucas started out by losses and learned from those on how to master trading. It can be a slow process for some and an even slower process for others, some people pick it up quick and have a strategy down while others change their strategy through time to finally achieve their goals. Either way, stick to it, put in the energy to learn, and develop into the trader you want to be.