Can trading be successful without anyone to guide you?

2024-06-17

It is possible to succeed in trading without guidance, as I have done through self-study. However, in today's era of information overload, the learning process can be cluttered with noise, making it crucial to discern truth from falsehood and right from wrong. I myself have taken many detours before understanding what is correct. Having the right person to guide you can only enhance the efficiency of learning, but achieving profitability still relies on oneself.

Most of us lack the ability to self-learn, perhaps because from our student days, we have mostly engaged in "passive learning," lacking the skills to filter information and learn autonomously. Universities also do not offer courses on trading. Some friends believe that others' profits come from talent, either a sense of the market or high intelligence, but the reality is not so simple. I know many highly educated individuals who still suffer significant losses.

In the trading market, a world without rules, everyone is equal. It depends on who can better understand human nature, maintain self-discipline, self-learn, and persevere to the end.

Today, I will combine my own experiences to help you sort out how to self-learn in trading without guidance and how to achieve profitability.

1. We must first learn the correct perception.

Whether it is futures or foreign exchange, these are leveraged markets, inherently riskier than stocks and funds. With many examples in the market of making big and quick money, many novice traders are eager to try with a small amount of money, hoping to make a fortune with a small investment, ideally earning more than 10 times the profit.

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At this point, let's not even talk about trading techniques; you might not even be familiar with the market's trading rules or have not yet mastered the operation of the trading software, and you just open an account and start trading with real money.

If you lose everything at this stage, you might still be apprehensive, thinking that trading is such a difficult thing. If you make a profit at this time, and a significant one, that's disastrous. Many people will then think that trading is too simple, just a matter of moving your fingers, and a lot of money flows into your account. The money comes too fast and is too satisfying, and this can distort one's view of money, which is the most frightening situation.

Some people may also lose control after a loss, instinctively wanting to break even, begging and pleading, saying that they will quit once they break even. As a result, the more they trade, the worse they perform, and the more they lose. At this point, asking you to stop and calmly learn trading from the beginning is almost impossible.

So, do not rush to trade with real money at the start, and do not let yourself fall into this vicious cycle. Be patient and learn first, and only after everything is mature, try with a small amount, and gradually cultivate your trading habits. The road ahead will then be smooth.2. What should we learn on our own without guidance?

It is mainly divided into two parts. One is trading techniques, such as technical indicators, including candlestick charts, moving averages, Bollinger Bands, MACD, KDJ, and so on. Choose two or three indicators that you find visually appealing and study them in depth. Once you have thoroughly understood their usage, you will be well-equipped.

The other part is the trading system. We organize the indicators according to the basic framework of a trading system. This part is very thoroughly explained in the book "Trend Trading Method," which you can refer to.

In addition to trading techniques, we still need to learn the basics, such as market fundamentals, software usage, and some understanding of the fundamentals. You can quickly grasp these by reading some books.

Actually, learning these things is not difficult; it just takes a bit of time, and the difference between people lies in this time.

After we have established our trading system, we do not need to rely on others to judge whether our trading system has problems. We can directly use backtesting software or a demo account for long-term testing, which will clearly show whether our trading system can make a profit, if there are any flaws, and how to modify them.

There is one more point to note: it is not difficult for a trading system to be profitable, but we also need to see if its profit-making process is gentle, because most people tend to overestimate their risk tolerance. As a result, in the actual market, trading can feel like a roller coaster ride, and not many people can maintain a stable mindset.

Executing a trading strategy with a high degree of difficulty is equivalent to having no trading strategy at all. Remember this phrase.

Believing that success in trading comes with guidance is, in fact, a form of "laziness" in thinking, wishing to make money while lying down. However, when a pie falls from the sky, due to the high-altitude fall, it may not necessarily bring you sustenance; it could potentially knock you out. In the financial market, a place full of money and temptation, one must be cautious in discerning.

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