Online Trading Academy Article of the Week
by Sam Evans, Online Trading Academy
Many years ago in the very first trading class I ever took, my instructor told us a vital truth about the markets: Trading is simple but far from easy. Looking back I don't think I really took much notice of the vital importance behind what he said to us all in the classroom that day. I was more interested in getting to the “good stuff,” that being the strategies and the charts! Now, some eleven years later it really makes complete and utter sense to me. In fact, I make a point of telling my own students the exact same thing whenever I am teaching them the ways of trading.
The simplicity of trading for short term income or long term wealth generation is really down to the basic dynamics concerned with how to actually trade in an effective, objective and logical manner. Let's face it there are only three things you can do in the market after all, that is buy it, sell it or do nothing. It doesn't get much simpler that that, does it? Once you are in a trade you have to decide for yourself what you are going to do next. This is the more complex part. Obviously you are either going to win on the trade, lose on it or maybe break even from time to time but whatever the outcome, this is the one true unknown element and thus, is what makes the act of trading not so easy.
You see, as human beings going about our daily lives, we have become used to having a high degree of certainty running throughout our existence as we go about our daily business. Of course Murphy's Law suggests that if anything can happen, it will happen but again we are still fairly comfortable in knowing that many events which transpire in our lives have fairly predictable outcomes. We have gotten used to pretty much knowing what is going to happen next in most aspects of our lives and have taken a deep-rooted level of comfort in this habitual awareness. Therefore, I would suggest that when it comes to trading, the majority of people find a huge challenge in not knowing what is going to happen next.
