What is the dark side of stock trading?
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"There will always be another trade. You don’t need to try to catch them all. Be a sniper and not a machine gunner is a common saying. Quality over quantity"
The dark side and realities of stock trading are explained below:
Day traders should have the title of risk manager. Essentially you are willing to risk your capital in areas where your edge presents itself. The rest of the time you simply wait. In essence, you are paid to wait. The exact opposite of doing something. Patience. It’s the hardest thing to master. One embarks on the journey of truly seeing all their flaws in trading.
You will lose and that’s okay. Trading is a game of “Did I follow my plan” more than winning or losing. If you can validate your losses as part of the plan, those are good losses. The losses you are trying to eliminate are the FOMO losses.
You will be wrong. You may have done everything perfectly in your analysis just to lose, this will happen. On days you can win in the market, you have to win in discipline and lose small so that your next winning trade counts for more.
You will not catch every move. There will always be another trade. You don’t need to try to catch them all. Be a sniper and not a machine gunner is a common saying. Quality over quantity.
You will always leave money on the table. No matter how good or bad you are doing, you will always think you could have held longer or taken another trade, or made more money. This is called greed. The market runs on it. It is important to pay yourself at levels your trading plan clearly states. In the moments emotions take over, the plan must be followed.
The process matters more than the money. The money comes from following a system that you can repeat. If you can’t replicate it every single day, you are gambling and not trading. Know the difference. If you are still trading without a proper plan, it's time to make one that works for you. Someone else’s plan will not fit your needs, develop your own even if one has been provided for you, it needs to feel natural to you.
Every single edge is profitable. It’s being proven. It’s the discipline that truly sets you apart from the rest. It can be done by you.
Credit: Quora