What’s the hardest part about being successful at trading?
“Success” may mean whatever you want it to mean. It could be making it big vs. getting a decent rate or return vs. not losing your money. It could be about stocks, bonds or options.
If you can spare a few minutes, do also talk about why it’s hard.
Discretionary trading based on screen watching or fundamental data processing is physically and mentally demanding. Also need to be managed along with everything thrown at you by life.
So apart from the first year in trading when I was figuring out, I have been a fan of systematic auto trading. Always felt it was the easiest thing I have done to make money.
Managing risk by losing less when my trade goes wrong.
To probably avoid information overload? Filtering through tons of information, and making an informed decision, I think helps go longer.
you become a doubt master! Overthinking about risk will create paranoia
Future uncertainty/drawdowns.
Just because system worked in past does not mean it will continue to do so in future. It normally will, but things can change. With competition, edges can reduce too and we need to evolve.
Extended drawdown periods can be tough and frustrating, but i think they are necessary and probably this reduces competition. Also must ignore tall tales from other people ( whether true or false – who cares if there is nothing useful … )
Best protection against this is – diversification, not taking too much risk, and preferably having much larger than needed capital ( so must compound until we get there … ).
The hardest part about being successful at trading is that it requires a combination of knowledge, skill, discipline, and emotional control. Obviously, diversification & too few risk.