Why new traders struggle | stockbee

5/10/2018

Why new traders struggle

When you are new trader or new to a setup you struggle because you are rigidly trying to adhere  to taught rules or plans


You have little situational awareness so are not flexible and nimble. When faced with novel situation your rules and guidelines alone are not sufficient. 
No discretionary judgment. is used by new traders. They want to rigidly adhere to rules. You can see this in trading world where traders vow to strictly follow their rules. Rules with no understanding of situation are counter productive. 

Novices traders have not done enough trades and have  no "life experience" in the application of trading rules they picked up from others or books or blog or training program.   As against that expert traders have done thousands of trades.
"Just tell me what I need to do and I'll do it." But that does not work if there is a situation changes. markets and stocks are dynamic and the market ecosystem changes constantly. 
This frustrates traders. And as result give up on potentially very profitable setup idea pre maturely. They try lots of this with very little success. 

The good skilled trader no longer relies on rigid rules, guidelines . They operate within  certain framework of rules but they are not rigid. 
They have flexibility to bend rules and guidelines as they dynamically read the situation and can change on the fly during the trade.
The trader, with an enormous background of experience gained through thousands of trades , now has an intuitive grasp of the trading setup and several variation of that setup along with accumulated understanding of individual stock behavior. As a result makes minor adjustment to his trade as he or she reads to context of the trade and they can do this very quickly.
The expert trader operates from a deep understanding of his setup , market conditions, his process and the total situation. That is difficult to explain to novice trader.

The chess master, for instance, when asked why he or she made a particularly masterful move, will just say: "Because it felt right; it looked good." The performer is no longer aware of features and rules;' his/her performance becomes fluid and flexible and highly proficient.

In order to improve your trade performance you need to do hundreds of trades . Or study hundreds of past patterns.

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