I have had the pleasure of assisting many many people how improve their trading results, and one of the unfortunately common issues I often come across is beginners trying to work it all out themselves.
It’s mostly the guys (sorry fellas), and I guess it’s similar to the old “I don’t need the instruction manual!” routine that even I suffer from. But I only have to look back to yesterday, building a flat packed piece of furniture, only to mess it up and have to take it apart to start again. If I had just looked at the manual I would have saved a lot of time.
Across my emails and sometimes in conversation I often see things like “I’m trying to build my own system….but”.
That’s a very common line unfortunately. I purposefully use the word unfortunately, because this is always a mistake.
Personally speaking, when I began to learn to trade my initial thought was….”who are the experts?” “who can teach me this stuff?”.
There’s a lot of ego in thinking you can simply walk into this arena, and become one of the 10% who win just by working it all out yourself. I think it’s insanity.
The world has been around for a long time. A long time before me and you entered it. Huge generations of people who lived before us and have experienced things. Learned lessons. Become wiser before their death than you and I will probably ever be.
Many of these people left behind what they learned. Often through books.
Now, the financial markets have only been around for a couple of hundred years, but guess what? In that time, many people have made fortunes and shared with us how they did it.
It then begs the question for me, why wouldn’t you seek out that information and learn how they did it, before trying to then build your own trading system?
When people tell me they have never traded but are trying to build their own system and trade using their (real) money I feel like screaming!
Its frustrating for me because I know you will do much much better learning a successful established system that makes money, understanding why it makes money, and THEN building your own system afterwards. Otherwise, you’re simply trying to re-invent the wheel. You are trying to invent someone new, when it’s not needed.
If someone came up to you and said “I know televisions already exist, and that I could just buy one, and I know nothing about building them, but i’m going to try and build my own one from scratch” you’d think they were a nut job and send them away to the funny farm.
So why are people taking that same approach when it comes to trading?
People are so risk averse with their money, yet do the strangest things like try and work things out the hard way when there’s a much easier path right in front of them.
My advice? Invest in yourself by learning from other peoples mistakes so you don’t have to make them yourself.
If you won’t invest in training, to save yourself £1000 in losses, you’re nuts! Anyway, Happy Friday & have a great weekend all!