We’ve all heard the adage “You can’t beat the market” and “The house always wins,” but there are traders and investors who do outperform the market, much like some blackjack and poker players make a living in casinos. How do they do it? They don’t possess psychic abilities to predict the market or cheat the casino’s advanced security system. So what’s their secret? Discover the two main ingredients that successful traders possess to consistently beat the market. Join the elite group of investors who profit regularly by reading on…
The first step to market dominance is to defeat the larger ‘opponent’…
In order to become a profitable trader and consistently earn money from the market, you must first conquer yourself. Temptations and impulses that arise when you look at a chart can only be overcome by mastering your own mind and body. Though the idea may seem straightforward, in reality, it is much more challenging. Ignoring the demons in your head that encourage you to enter another trade and risk more when it is not in your best interest is crucial to achieving consistent profitability. Without the ability to control yourself, you will not be able to compete in the market, let alone beat it…
So whats the solution…?
In order to become a consistently profitable trader, you must first master yourself. This means learning to control your impulses and only taking well-considered trades. Most people fail at trading because they are wired for “fight or flight”, a trait that has served humans well for thousands of years, but is detrimental to successful trading. To overcome this, you must develop discipline, patience, logic, planning, and forward-thinking. Understand that when you start trading, your biggest foe will be yourself. Accept this fact and create a plan to overcome your emotional trading demons. Only then can you begin to beat the market and achieve consistent profits.
The market-beating’s second crucial component…
It is a misconception that the 10% of successful traders are merely lucky or have an unfair advantage. The market is an impartial entity, indifferent to personal advantages. Your trading skill and the ability to master self-control are the two critical elements to beating the market, as we discussed earlier. While learning and perfecting an effective trading strategy is necessary, it alone will not suffice if you cannot conquer the psychological obstacles that plague every trader. To succeed, you need both a mastery of self and trading skill. Warren Buffett exemplifies this combination, as the “Oracle of Omaha” is the most celebrated investor of all time due to his skill for choosing the right stocks and adhering to his plan, as discussed in this Bloomberg article.
So whats the solution…?
To overcome a deficiency in trading expertise, the first step is to acquire effective education and training on a practical trading methodology such as price action. Once proficient in the strategy, one should then practice on a demo account and start developing a trading plan. The plan should not be a rigid set of rules, but rather a daily guide or checklist to keep one on track. It may include essential trade setup criteria as well as daily affirmations or motivational quotes to maintain focus.
The trading plan should be viewed as the foundation of one’s overall trading routine, providing structure and helping to stay on track by adhering to the trading strategy and guidelines established. Traders who attempt to improvise and expect to become disciplined traders overnight inevitably fail. A tangible structure and routine are necessary to convert the aspiration for discipline into a habitual practice that gradually solidifies in one’s mind.
Conclusion
To achieve success in the market, you must first overcome the most formidable opponent you’ll ever face – yourself. The key to beating the market is a combination of mastering a simple and effective trading strategy and gaining control over your own mind. By accomplishing both, you’ll be well on your way to beating the market, and the best part is that this success will be under your control. Our trading course teaches such a strategy that can help you achieve this goal!
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