It does not take very long for a new trader to realize how difficult it is to make money in the stock market.  Sure, a trader can make money on a trade but to make money consistently and over a long period of time is, to say the least, difficult.  Is it any wonder that by some estimates as few as 10% ever make a good go of trading?  Why is this so? Why the difficulty?

The answer is really quite simple.  Every single one of us who are actively involved in trading and investing hold the answer.  The answer is in the reason(s) we decide to buy, sell, or step aside.  Your reason to sell may be mine to buy and vice versa.  My trend line may not be the same as yours so while yours may be breaking mine may be holding.  My favorite indicator or a combination thereof may be giving me a buy signal while yours a sell.  One fund’s reason to accumulate shares in a company may be another funds reason to sell short.  General market sentiment can change quickly or can be reinforced with each economic report or company data release.  Again, depending on the interpretation of the data and the participants who pay attention to such things, the current market sentiment may change, stay the same, or simply correct for a short period of time.

Fundamentals can change. Technicals can change. Minds can change.

And therein lies the answer.  If we are going to make it in the trading business we must be willing to change by making adjustments.  Change our minds, change our opinions, change our biases.  We must adjust our trading to match those needed changes.  We must also recognize that others may and will do the same…without warning.



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