A Trade A Day

1. I consistently make money.

I roll my eyes when I hear or read this statement. If there’s anything I’ve learned it’s that the market is not my personal ATM. Sure, over the course of a career I’ve become net positive, but its had some ups and downs. When someone says they’re consistently making money, are implying they always make money? I believe you can be a consistent trader, but if you told me you consistently make money, I would call you a liar.

Consistent trading and consistently making money are not one in the same. Good, consistent trading is not always a money maker. Trading at its core is a losers game. The objective is to be the best loser. If I can lose 6 times or less out of 10, I’m consistently making money, but I’m not making money all the time. Learn to make the distinction.

When you hear a statement like “I consistently make money”, be sure to look at the context. If they’re trying to sell something, chances are they’re full of shit.

2. It’s easy to make $/month.

I’m sure at some point a trader can gauge how much they can pull out of the market. I’ve been trading for 13 years and I still can’t tell you exactly how much I’m going to make in a year. There are too many unknowns. I trade the same setups and manage my risk with the same method, but I don’t know how well it will work in the future. When someone tells you how easy it is to make $3 to 5K each month by trading , be cautious. What is the context? How much would I need to make that, $3K or $10 million? What about the system? What’s the best market to trade it? Are we in that market cycle now? If you can swallow your greed, you’ll be able to clearly see the lie in the “It’s easy to make $/mo” kinds of statements.

3. My system makes money in any market.

Wrong, they only system that makes money in any market is a savings account. Each system has it’s own ideal set of criteria. Anyone who has spent even a little time trading knows that the market changes and setups that worked over the past 6 months, may not work as well over the next 6 months. This kind of phenomena is due to many factors from market direction to trader effect. The point is that to say your system makes money in any market flaunts your ignorance and makes me laugh.

4. Trading is easy money.

Trading is the hardest thing I’ve ever done. It’s a constant battle every day to keep my emotions in check. To exercise discipline in my trading decisions and in how I spend my time during the day (Do I trade, play video games, research or blog. See how this could be a problem?)

5. I can teach you how to trade in two weeks.

This is actually true. In fact, it was the exact same time frame that Richard Dennis used to teach the Turtles his trading methodology. Maybe I should have called this article 4 lies and one truth traders tell. Anyway, Good, profitable trading doesn’t have to be complicated. Now consistently making money after two weeks? That’s a different story.

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