Day traders can lose money in markets with low volatility.
Trend followers don’t make money without a trend and lose money in whipsawing markets.
Swing traders can’t make money in tight ranges.
Investors lose money in bear markets.
Option buyers need trends to make money, and option sellers need small moves in prices to make money.
If you are trading with a robust system, proven principles, and the right position size then trading can be an enjoyable and profitable experience. If you risk too much and trade too randomly, then trading can be a stressful nightmare. If your trading capital is large enough to meet your financial goals, then you can enjoy it as a sport. If you are trading with a small account and trying to pay the light bill each month, you will experience too much stress to trade with a long-term perspective.
Each trade should be just one of the next one hundred. Each trade you make today should just be one for the week. Each week should only be one week during the month. One month’s results are just one out of the entire year. Short-term results can be random; it takes time for a system to play out and to identify an edge during the right market environments that can lead to profitability.
You have to monitor your trading to ensure that you’re following your system’s entries and exits with discipline, and that you are meeting your win percentage and limiting your losses per your trading plan. Trading is about the long game and the fortitude to last long enough to reap the rewards of your efforts. Time is your test, stay with it until you win. Survival is half the battle. The other half is comprised of discipline, risk management, and a robust methodology.
Time is one of the biggest obstacles that traders will face. Success has more to do with how you manage losing streaks and drawdowns because the winning streaks are easy, but patience is the true test of a professional trader.