Why you trade against yourself.

An article in todays Mail (bought by Mrs Owl I might add).


OK so it's about online gambling but it could equally be about Trading.
Be under no illusion, as a trader you are ALWAYS WRONG. There is no room as a trader for you to be RIGHT. The market is ALWAYS right.
Before you take a trade consider how much you are prepared to LOSE and stick to that limit.
Never ever allow a losing trade become a bigger loser in the "hope" that the price will have to rise sometime. Mining stocks at the end of last year is proof of that.
Unless you are someone who will cut their wrists and watch yourself bleed to death in the hope that an ambulance will arrive in time, Place a trade with Stop losses and pre determined Targets then walk off and leave it. Staring at a trade is not going to help it move your chosen direction.
If someone tells you that you have a natural talent for being able to read the markets and it makes you feel good then it means you are a WAKNER. Recognise this in yourself.
Only trade an account with money you can AFFORD to lose. Scared money is scared trading.
If you arrogantly think that your status in life will help you to survive in the markets then you will almost certainly get crushed.

The above are some of the doom and gloom words in my own Trading Plan written 5 Years ago. I am still in the market and still in the money so to speak. The article contains examples of all of these faults yet still traders ignore them which is why around 90% lose money over time.
Love some feedback.


OK so it's about online gambling but it could equally be about Trading.
Not the same thing.

Its the difference between running a betting shop, or being punter sticking £20 quid on a nag with good form on the 1415 at Cheltenham.

One always makes profit over time, one always loses money over time. If you cannot distinguish, don't trade.
Not the same thing.

Its the difference between running a betting shop, or being punter sticking £20 quid on a nag with good form on the 1415 at Cheltenham.

One always makes profit over time, one always loses money over time. If you cannot distinguish, don't trade.
I didn't say it was the same thing. I just showed that the mistakes made are the same, with the examples in this article. I know people who have made all of the same mistakes and fail to be profitable as a result. Emotion and belief in the marketplace is the path to destruction.


Book Reviewer
nice of mrs owl to bring you back the paper you asked for. :)

good example of addictions though and explains how traders run up billions in losses.
A successful trading week is one whereby overall you did not sustain losses in your P&L statement.

Know your individual strengths and weaknesses. Write them down and be honest. We play to our strengths but don't expect this to counter balance weaknesses. Faults such as GREED, LAZINESS, IMPATIENCE, FEAR, WANTING TO PROVE YOU ARE IN THE RIGHT, TRYING TO MULTI-TASK, GOING INTO DENIAL, ARROGANCE, OVER ANALYSIS, INCONSISTENCY IN APPROACH, DISTRACTION, LAUREL RESTING. All of these faults will impact your trading , have a strategy to deal with each of them before you hit the trading floor.


Have a rule based Trading Plan. All successful traders have one. If you are someone who does not like to follow rules imagine you are driving a car. If you fail to follow the rules of the road then you would be dead already. Same as traders who blow up their accounts.

Always journal your trades. how can you evaluate data which you do not record? Use Snagit or Snipping tool as soon as you enter the trade to grab the chart picture. Record why you took the trade , how you managed it , the outcome and be self critical.

Never risk more than you stand to gain, the market will crush your account.

Trade what is REAL (what you see in the charts). Not what you FEEL.
Always Always have a quick get out emergency plan in case the internet crashes or you have a power cut.

If you ever want to know how NOT to trade then watch this series. Million Dollar Traders (Full Series 1 of 3) - YouTube

Price action. Look for areas of Supply and Demand imbalance. This is an area where price has to move

I am in NO hurry to lose money. As each trade is a potential loss then equally I am in NO hurry to make money.

I never listen to analysts or broadcasters. They're all lying scumbags.
CME pit trader.

Unless you are someone who can slit their wrists and watch themselves bleed half to death before an ambulance arrives then after you have placed a trade set your stops and target (s) walk off and do something else.

The only way to achieve consistency is to execute and manage trades consistently.

1. The more times a Support or Resistance line rejects price then the stronger that Support or Resistance line becomes.
This is a widely held view but in fact is nonsense
2. It's important to get the trading idea Right.
There is no rooom to be right or wrong as a trader, the Market is always right, the trader is always wrong,it's just buyers and sellers either way one side makes money and the other does not, make sure you have a plan to get out of the market very quickly if it goes against you
3. You will need to lose a fair part of your account before you start to be consistently profitable.
WRONG, I Learned form someone else's mistakes, not my own.
4. It takes at least 1000 trades to become considtently profitable in any day traded asset.
WRONG, you need to study the market for a bit and not let your P&L statement do it for you.
5. Breakout trades fail more often than they succeed.
WRONG. If you have a strong trend and a flat level breakouts can be HOT.

There is no true Volume in the Forex market. It's only what your brokers want you to see.
There is no true "Shorting the Market" with FX. You are always Buying and Selling one AND the other.

Do not risk 1 cent in the live markets until you have a thorough understanding of your charting and trade execution platform. All of them have a support facility, MILK IT and learn.

Think of the 3 RULES. When you do lose money then make sure it is very small amounts.

1) Don’t be Tradeaholic.
2) You trade to make money- not for fun, games or to escape boredom.
3) Never add to a bad trade.
4) Once you have a profit on a trade, never let it become a loss.
6) Don’t be a one way trader- be flexible.
7) Know your risk on each trade. USE STOPS!
8) Look for a minimum 3-1 profit objective.
9) When initiating a trade, always get your price.
10) When liquidating a bad trade, always use a market order.
11) A scratch trade is a “winner”.
12) Learn from your own mistakes.
13) Plan your trade, trade your plan, then monitor it.
14) 3 losing trades in a row rule. Stop! Take a break.
15) DISCIPLINE! 90% of the public loses without it.
16) Pay attention to weekly highs and lows.
17) “GURU” software systems make money for the sales rep. Develop your own approach.
18) Understand spreading and options.
19) Technical analysis tells you what the fundamentals don’t.

Similar threads