We’ve all heard “You can’t beat the market” and “Kazan always wins”, but we also all know that some traders and investors do beat the market, just as some blackjack and poker players make a living. casino. How do they do it? Do they have some super secret psychic ability to predict the next big move in the market, or some big elaborate plan to fool modern casino security? Unless you’re talking about a Hollywood movie, the answer is obviously no.
So what’s the big “secret”? How do some traders consistently “beat” the market while you sit and endure another disappointing week in the market? What if I told you that there are really only two main ingredients that you need to consistently beat the market? Read on to find out who they are and how they can put you in the elite group of traders and investors who make regular profits in the market…
The first ingredient of beating the market: beating the bigger “enemy”…
If you want to constantly withdraw money from the market and become a profitable trader, you need to “beat” yourself first. That’s right, even before you become a worthy competitor in the market, you must master yourself. If you cannot control yourself and “defeat” the temptations and impulses that flood your mind and body every time you look at a chart, you will never even have a chance to beat the market.
The idea here is pretty simple in theory, but MUCH harder in practice, as you probably already know. If you can’t learn to ignore the “demons” in your head that tell you to come in Other trading and risk Other a lot, when you know it’s not in your best interest, you’ll never make consistent profits in the market.
AND full shift in your thinking.
You must start believing what your only real “advantage” in the market is to be in control of your actions and choose your trades wisely.because of this in fact your only real advantage over millions of other people trying to trade.
Why do you think about 90% of all people who try to trade their money in the market end up losing all or most of it? This is because in our mental structure, as humans, it is bad to trade, we are set to “fight or flight”, as this scheme has served us best during the millennia of our evolution, which was mainly carried out in dangerous situations, hunting for food. or fighting other people. Fast forward to the modern era and things are obviously MUCH different, the internet has only really been in widespread use for about 10-15 years, widespread online trading from your computer and mobile trading have been around for even less time. In short, you are not born with the proper wiring to beat the market, you have to develop it through discipline, patience, logic, planning and forward thinking, you know, all things don’t come by themselves, nor ‘feel easy’ for most of people.
Thus, you MUST accept and understand that the minute you start trading live, you are already fighting the most powerful trading enemy you will ever face – yourself. I have written many articles about patience, discipline, and consistent trading, but if you are not ready to TAKE ACTION to combat the emotionally fueled trading demons inside your own head, you will never even come close to beating the market.
So, the solution is simple: recognize that YOU are the biggest enemy you need to defeat in order to consistently make money in the market, and then develop an ACTION PLAN to make it happen. After that, it will be easy to beat the market.
The second key ingredient to beat the market…
If you sit back and think that the 10% of successful traders are just “lucky” or have some unfair advantage, you are deeply mistaken.
You see, unlike many other professions, the market does not care about you or your advantages, you can say that the market is the “Great Equalizer”. The only two things that really matter in trading are your trading skills/ability and whether or not you “beat” yourself as we discussed above.
Learning an effective trading method and actually mastering it is obviously a necessary ingredient for beating the market. However, if you have not yet defeated the trading demons in your head, you will not succeed even if you are already a very experienced trader. So you can’t have just one of those two ingredients, you need both; you must have complete control over your mind and actions in the market, and you must be an experienced trader.
Perhaps the best example of how a combination of skill and self-control can help you beat the market is Warren Buffett. Warren Buffett obviously knows how to beat the market, he is without a doubt the greatest investor of all time, and it’s not because he was lucky. As discussed in this article on bloombergBuffett has a real knack for picking the right stocks, he has a plan and he sticks to it. They don’t call him the “Oracle of Omaha” for nothing.
The solution to the lack of trading skills and abilities is to first get effective training and education in a real trading method such as price action.
After you have learned all the intricacies of the strategy, you need to start practicing it on a demo account and start building a trading plan. Over time you will need to tweak and change your plan, please don’t think of the trading plan as a “hard set of rules” to follow because it shouldn’t be. It should be a daily guide or even a checklist that you will use to stay on track. It will obviously include the basic things you are looking for in a trading setup, but it can also include things like daily trading statements or inspirational quotes, anything to help keep you focused and on track.
You should think of the trading plan as the “glue” of your overall trading routine.. A trading plan will give you some structure (if you stick to it) and help you stay on track by focusing on the trading strategy and recommendations you have laid out. Traders who try to “lean” and think they’ll just magically become disciplined traders overnight almost always fail. Everyone needs some kind of tangible structure and routine to turn the desire for discipline into a habit that will take hold in your mind over time.
Victory over the market begins with victory over yourself. You will never face a stronger opponent in the world of trading than the one that lives in your own mind. However, the recipe for beating the market is quite simple: learn a simple and effective trading strategy like the one I teach in my trading course and combine this trading skill with self-control. If you can do these two things, beating the market will be within your reach and, most importantly, under your control.