The best advice in trading is…
DO NOT TRADE!
IF YOU GOT SUCKED INTO IT, STOP NOW!
RUN FROM TRADING LIKE THE DEVIL RUNS FROM A CROSS!
CUT YOUR LOSSES OR PROFITS AND LEAVE IT BEFORE IT’S TOO LATE!
DON’T EVEN THINK ABOUT OPENING A DEMO ACCOUNT! IT’S ALL FAKE! DESIGNED TO MAKE YOU THINK YOU CAN WIN, WHEN YOU START TRADING WITH REAL MONEY YOU WILL LOSE EVERYTHING!
But of course you will not listen, will you?
So if you still want to trade, read the article below so you really find out what you are getting into, and if it goes wrong later, remember it will be all your fault and no one else’s but your fault!
That is right! The best advice we can give you on trading is NOT TO TRADE AT ALL! That’s it people! Let’s cut the crap surrounding trading, if you stay away from trading you will be fine, as long as you look for a productive activity that your efforts are rewarded with some form of success or benefits for you and your family, you will be better off. The opposite is Trading, that will not bring you the consistent returns nor a possible reward you can get doing something useful for yourself, that develops you and contributes to your family’s future success, trading will only contribute to your bankruptcy.
Trading works against your wealth, your health and your mind, despite popular views.
Traders are awesome! Why the popular view is so far from the reality?
Illusion, glamour, ignorance and big businesses marketing campaigns sucking vulnerable people to the game.
People want everything and fast for no efforts, like magic, and trading works like magic, it just happen that most of the time you are the fooled one.
But why everyone talks about trading as it is some sort of secret that when learned can make you a millionaire?
Because trading is an endless flow of money, not for you or me of course… Trading is promoted left and right by powerful businesses that profit enormously from it! But also because people always dream of achieving easy wealth fast, different than their daily jobs of working hard on boring things… Trading attracts millions of naive folks that end up spending all their hard earning savings attempting to reach easy wealth with almost impossible odds…
You find invitations for trading about everywhere you look, that gives you the impression that trading is a winnable game, which in reality is NOT! Then you decide to try a little, and when you lose a bit of money, then is when they got you! Hardly no one that starts trading and lose a bit, will stop trading completely. We are hardwired to try harder to fix mistakes, and that trait is exploited by the trading industry, when you lose a bit you will keep trying to recover what you have lost to begin with, and most will then proceed to the slaughter losing everything they have on the line.
How did we came to this?
Wild business environment, powerful big businesses marketing machines and weak regulations by inadequate government controls, however, fueled mostly by people with gambling personalities, seeking glamour, entertainment and looking for a dopamine high.
The highs and lows of the market will feed a brain’s dopamine addiction, pushing most to bankruptcy!
But there is no villains or victims in trading despite everything, why? Because brokers are in the businesses of making money and everyone knows that, the Government can only do as much to protect its naive citizens, and no one can prevent you from gambling, even if some incentive you to believe you can win games of almost impossible odds.
Trading is for robots, literally.
Have you heard that to be a good trader you can’t be emotional?! Well I have bad news for you… you are alive! So that makes you an emotional being, and if that is a problem you are most likely not suitable for the job! In fact the numbers show exactly that 95-99% quit and lose money before the end of 5 years, but why? One of the reasons is because people have feelings and emotions, and perhaps at some stage of a trader’s career they stop winning, just to lose everything when they are in the middle of a personal crisis for example and their emotional state changes. How you feel and think reflects on your trading success, and we tend to be dynamic thinkers right?! Meaning we change our thinking about things often and we have emotions, and trying to not reflect that in the trading environment is impossible.
Trading exacerbates our natural human flaws and sentiments and that makes trading a very hard game to win for HUMANS. Fear, greed, anger, euphoria and excitement, if you have some of that you shouldn’t trade.
Trading today is many times more difficult than it was 10 years ago! It is a slaughter house.
Have you ever heard about trading-bots? Well if you haven’t and if you are thinking about trading, you should inform yourself fast, because 85% of the market trades today are done by these guys, trading-bots, also known as algorithmic trading or algo-trading.
Every time a human places a trade, he or she will be facing millions of black-boxes packed with algorithms that are programed to trade against you, and their ultimate goal is your money. In fact before you could blink your eyes when placing a trade or closing a position, you are probably losing money for the trading-bots already, in every single second trading bots will make several trades on you, and will profit from your trade without you can even realizing it!
Trading bots are like parasites sucking the live of the market and you are the clown feeding it!
Trading is not fair! And no matter how good you are or how hard you work, the end result will not reflect your efforts, and 99% of the time you will lose all your capital in a long run!
Trading indicators, charts, technical analysis, higher-highs and lower-lows, the winner trader, the good trades, amazing leverages, the trend followers, the swing traders, the stop loss, the lucky trade, the scalper, the side trading, and the countless analysts talking about it on their smart YouTube channels. It is all there to insure you that the game of trading somehow can be won, but in reality 99.9% will not make it!
Inciting you to trade today is the same as if someone were to incentive you to cross the Atlantic Ocean swimming for a reward, and they would provide you with all sorts of information showing how it could be done, how to swim, how to make the right stops, the best times to swim during the journey, etc., but how realistic and logic would it be for you to actually swim the whole length of the Atlantic? And would that be worth in the end for your health or finances?
“A friend ours, a mathematician that was working for a hedge-fund in London creating algorism trading software, once told us that, “trading was not a winning game, with impossible odds to be a winner in a long run, a bit like chasing rabbits in a field blind-folded and with your legs tied up. You will never be fast, efficient or consistent enough to make a living!”
Trading is like playing the lottery, but it is closer to playing a slot machine without the fun.
Trading is very much like playing a lottery but definitely closer to gambling pure and simple. Why? Because your odds of winning are very small, but the illusion keeps you going for it, but because it is an intense and demanding activity it is like playing a slot machine in a casino, in your own living room, trying your luck over and over again, sitting for days in front of a screen so you can in the end give all your money to some fat cats on the other side of the game.
Trading is a boring and costly entertainment, that when you play, 99% of the time you will regret in the end.
When your family or friends tell you that you shouldn’t trade because it is like gambling, you should listen, because they are telling you the truth. Trading is gambling!
What are the odds of winning a lottery or a slot machine against trading? Well, trading seems to be an easier game in principal, but not really, because it takes a lot of hard work to play it, so trading is many times worse than just push a slot machine button.
- The biggest lottery scheme in the US, the Powerball, you have a 1 to 300 million odds of winning.
- In the EU is the Euromillions, where you have a 1 to 120 million odds of winning the jackpot.
- The Easiest lottery to win is the UK National Lottery, where your odds are 1 to 14 million only.
- In a casino Slot machine, your odds are 1 to 500,000 thousand times to win a couple of bucks, but the odds in a slot machine may vary due to the types of games and different machines.
- The real trading odds of being successful are not really known and harder to quantify, but a mathematician friend ours suggested that it could be anything from 1 to 200,000 thousand odds of winning, to over 1 to 2 million odds of being a profitable trader after a period of 5 years.
But in trading all they will tell you is that, you have a 50% odds of winning a trade at any giving time, which is incorrect as well, as it is more likely to be 47.3% chances for you to win a trade at any giving time. Anyway at a first glance this information would make you think that isn’t that difficult to make money trading right? Wrong! Not that simple pal! You may be able to make money a couple of times, but you will lose as much and likely more often.
What needs to be considered is if the return is consistent throughout time, otherwise you are playing a slot machine with a different name, and trading does NOT give you good odds at all!
The game is rigged!
It is rigged for several reasons, the most important one is that you were made to believe that you could attempt to trade and have REAL chances to win.
Trading is like when someone invites you for a 100 meters race against a team of super sprinters and you are made to believe that you can in fact win. Of course you have a chances to win, but how realistic is it?
Fundamentals and technical, it is all manipulated, unreliable and guess work at best.
Which approach should you trust the most in trading? fundamentals or technicals? Both? What if I were to tell you that doesn’t matter! The game is dysfunctional, fundamentals don’t mean anything anymore, look at Gold and Silver for example, the paper Gold traded daily exceeds the yearly production, it is several times over the available Gold, and today Gold is being sold almost below production cost! Look at Facebook and Tesla stocks valuation against its earnings. For technicals, all indicators are lagging indicators, and none of them are consistent, they work until they don’t, traders make excuses over and over when things go against their indicators, like an asset in an over sold RSI that keep on selling for no reason, or volume that signals a hype or a slowdown of an asset just until something magic happens and everything goes in the opposite direction. If a whale trader sneezes and presses the wrong button by mistake, countless other trader gurus will come with all sort of explanations why that happen, and how that was expected and written in the chart moving averages, and indicated on the volume profile, RSI and Elliott cuckoo waves, and so on.
It is all guess work! Believe it, to not believe in it!
The most influential people in trading in fact have never made consistent money trading, total fact! They wrote a tone of books about it however. We don’t want to mention names and throw everyone under the bus, but trading is understood and mastered by only few human beings.
We also know that many very successful traders, are able to maintain their success due to inside information, for every cult you need its heroes. Some become successful due to shortcuts that are not available to the majority of players.
Trading is a pack with glamour of super successful traders, it is the idea that one good trader can win the money of several hundred other loser players is any given trade, it is the possibility of being the one that makes the money that keeps many in the game. Meanwhile countless others will go bankrupt seeking ego fulfilment.
STOP day dreaming! You can’t win trading and will most likely lose everything attempting to!
Several studies have been done regarding the trading odds, but none have really came to a complete picture, some talk about 95% of traders lose money, or 80% of traders will quit in the course of 2 years, others say only 3-2% of traders are profitable in 3 years and some mention that less than 0.5% are profitable at the end of 5 years, perhaps the closest one to the truth.
The reality no one knows, it is difficult to quantify, there has never been a comprehensive study done with enough data to make it valid across the World. We have asked a mathematician to provide a loose estimative of the traders that are profitable at the end of 5 years based on some data available online, and after a couple of days he came back to us with the following answer:
“As a loose estimative, I cannot see more than 0.005% of traders making it to 5 years with more money that they have started the first year, however, looking at the nature of the activity, I would suggest that my estimative is very optimistic and that the real number is most likely to be lower, but I do not have data to prove it.”
So based on the numbers found online from several sources that can be found by just searching the topic, the traders that quit or lose more money in a period of 5 years range exceeds the 95-99%.
Yes… that is exactly what you read, less than 5% to 1% of regular traders remain positive after 5 years trading. Now you can disagree with that, if you do please do your own research, but we can all agree that trading isn’t a promising way to make money, would you start a business that you know more than 90% of the times it doesn’t work in a period of 5 years or less?
Other reasons you should be informed about before starting trading:
- Trading can be financially and psychologically devastating to you and your family.
- Trading isolates you from the World.
- Trading will make you behave like a zombie.
- There are no winners in trading, but lucky players in any given trade.
- Trading is manipulated against you by platforms and other automated trading systems.
- You may win some trades by luck, but one thing is for sure, you will lose consistently as it has been shown over and over.
- The Financial Trading marketing industry will give you the illusion that trading can be mastered, but the reality is that it can’t for 95-99% of the people! You only have more luck some days than others.
- Trading makes you unhealthy, by spending hours in front of the screen your body suffers with stagnation.
- Trading is gambling plain and simple.
- 95-99% of human traders lose money trading in 5 years, it gives you similar odds of winning to a casino slot machine.
- The industry uses the example of few lucky traders to attract million others to feed the system.
- If you were unlucky enough of losing all your capital in your account and are wondering what went wrong, realize that you lost your money the moment you deposited it in the broker’s account, you didn’t have a chance. The whole game is impossible for normal people. Don’t believe that more money will make a difference, you will lose again and again in the end, no matter how many good trades you do, in the end you will leave the table empty.
- 85% of trading is done by automated trading bots.
- What in the World makes you think you can be better than 98% of traders or 85% of the killer trading-bots out there? You can’t, don’t be delusional!
- Be aware, you will lose all the capital you are investing!
- If you try to regain the capital you invested, you will lose more. That is when you know they got you by the balls.
- Trading these days is for professionals only! That means automated algorithm trading bots, if you feel like you are one of them go ahead and play the market casino, otherwise save yourself from the temptation of quick money and run as fast as you can, like the devil from the cross!
- Among all day traders in Taiwan, nearly 40% day trade for only one month. Within three years, only 13% continue to day trade. After five years, only 7% remain.
- You will lose the notion of real time, day or night.
- Everything is a tick in a minute chart, even your sex life.
- Traders sell winners at a 50% higher rate than losers. 60% of sales are winners, while 40% of sales are losers.
- Investors are more likely to repurchase a stock that they previously sold for a profit than one previously sold for a loss.
- One lucky trader makes the money and the rest keep running after it, like donkeys running after a carrot tied to their nose.
- Countless traders will go bankrupt seeking ego fulfilment.
- The average individual investor underperforms a market index by 1.5% per year. Active traders underperform by 6.5% annually.
- Day traders with strong past performance go on to earn strong returns in the future. Though only about 1% of all day traders are able to predictably profit net of fees.
- Investors overweight stocks in the industry in which they are employed.
- Investors tend to sell winning investments while holding on to their losing investments.
- Your eyes go bad for steering at chart for extended periods.
- Traders with up to a 10 years negative track record continue to trade. This suggest that day traders even continue to trade when they receive a negative signal regarding their ability.
- Profitable day traders make up a small proportion of all traders – 1.6% in the average year. However, these day traders are very active – accounting for 12% of all day trading activity.
- Among all traders, profitable traders increase their trading more than unprofitable day traders.
- Poor individuals tend to spend a greater proportion of their income on lottery purchases and their demand for lottery increases with a decline in their income.
- Investors with a large differential between their existing economic conditions and their aspiration levels hold riskier stocks in their portfolios.
- Traders with a high-IQ tend to hold more mutual funds and larger number of stocks. Therefore, benefit more from diversification effects.
- Most and hedge-funds traders tend to make worse than stock indexes.
- You will not build a career trading.
- It can lead you to lose your girlfriend or get a divorce.
- Poor, young men, who live in urban areas and belong to specific minority groups invest more in stocks with lottery-type features.
- Trading in Taiwan dropped by about 25% when a lottery was introduced in April 2002.
- During periods with unusually large lottery jackpot, individual investor trading declines.
- Individual investors trade more actively when their most recent trades were successful.
- Traders don’t learn about trading. “Trading to learn” is no more rational or profitable than playing roulette to learn for the individual investor.
- It can make you poor.
- Men trade more than women and unmarried men trade more than married men.
- Your back goes bad, try sitting long periods of time, your spine will not like it.
- The average day trader loses money by a considerable margin after adjusting for transaction costs.
- It makes you anti-social.
- If you hear about someone saying they make money trading, it is probably false! It is either a complete false statement, or someone that is still in a wining strike, or probably a trading bot itself trying to convince you to lose your little capital in the market casino.
- Trading can make you suicidal.
- It changes your mood for the worse.
- It is bad for your heart, and your blood pressure increases.
- You will not build anything productive.
- You are more likely than anyone to go bankrupt.
Even if you could make any sustainable money trading, it is a complete waste of time and potential. Watching charts of assets for hours, that most of the time you don’t even understand, trying to buy low and sell high, but really selling high and buying low is what you will be doing. Try to do something productive for your family with your time instead trading your life away in front of the screen with the hope you will get it right next time…that you are just closer to figure out the whole trading thing… STOP! It’s a trap! There is a conspiracy to get your money, and you are the clown in the game.
Even if you have a financial death wish, before trading just give your money to a family member, to your parents perhaps that spent incalculable amount of time and resources taking care of you. You can also donate some to us :-), it will be better spent than losing it all in the trading rabbit hole, at least you will not lose time in the process.
It is all an illusion designed to take your capital away from you! We can’t recommend you a sustainable way to make money, but we can tell you that it is definitely NOT trading!
If after what I said you still want to trade, try the links below, they are great to guide you in to the trading environment, of course chances are (99%) that you will lose everything, never the less live is a risk in itself, and you will not get out of it alive anyway.
Fair broker here
Another fair broker here
HEY!!! before you go, make sure to not invest in trading everything you are thinking of, take half (is 50%) and leave it invested in one of these Gold accounts here! At least when you lose everything trading, you will have some capital left to come back to.
Save some money in Gold before you lose it all trading