What I have seen that is a problem in this day and age and especially in the trading world is the addictive pattern many find themselves in called “chasing Moby Dick”. This is a plague that gets more people in trouble than any other trading challenge. The signs are as follows. The trader is eager to trade the market and tools up with the latest and greatest trading system and platform they typically jump right into the market without taking the appropriate amount of time to learn the trading platform and they think they know the indicators they are using because they sat down with their brother-in-law every weekend for a month and a half looking at past charts and back test all kinds of untold riches. So, they say “enough of this, I need to make my fortune!” Immediately they jump into the market and throw live money at the market some get lucky and see immediate results with, get lucky gains and others loose right off and get discouraged. But either way within a short amount of time they become discouraged because they never seem to get ahead either they lose a lot of money are just barely titter on the brink of break even. This is when they are very susceptible to this all consuming obsession with Moby Dick. They come to a cross roads where they have four choices to choose from. The first two types are the lucky few that avoid the infection that ensues. The first are they who give up and never discover the benefits of trading. The second, are those individuals who realize the danger of the path they have ventured down and stop trading live until they get a better grasp on the market and the proper amount of training needed that includes practice to become the trader that makes money in this volatile industry. The third is the trader that after losing in the market they immediately realize something is wrong and they begin blaming everyone and everything else for loses they had. They change brokers because “This broker takes an extra pip on the spread!” Or, They didn’t close my position at 97.81 instead I was stopped out at 97.83.” They start looking for a new data feed provider they start looking for new indicators without ever mastering the first set. They never quite get comfortable with the new indicators before they hear of another or see something else that a friend of a friend uses and they scamper off in search of success there. Never quite piecing together the components or connecting the dots to the whole picture. The dream is always out of reach, just beyond the horizon. They spend boat loads of money on new information but after it doesn’t product immediate results they place it on the shelf to collect dust. They become blind with desire and their health and happiness hinge on this one thing. Their lives become narrow and they lose sight of what counts. The fourth have the same behavior pattern as the third infected trader but with one difference. They jump from one system to the next looking for that silver bullet and paper trade like pros. But they never, and I repeat, never place a live trade. With both of these types of traders the underlining misguided belief is that there is something out there to help them to never loose in the market. They spend thousands of dollars on products and services looking for that one that will make them rich without a loss. This is the Moby Dick that will bring down their ship. The simple truth is this if you trade you will lose. If you want to be successful at trading you will lose. And finally even the mega successful traders loose in the market. It is a part of the trading experience. How to overcome the disease is no easy task. Not because it is hard to do but because it is hard to break though the process that traps so many of us traders. No one is immune to it and it takes constant vigilance to prevent becoming infected. Here is what one must do. Pick a broker, a trading platform, and a set of indicators. Stick with them solely until they have mastered them. First by demo trading and then by trading live. Remember, no deviating to any other systems until this one is mastered. You will know it will become second nature. Yes, any system can make you money. Yes not all systems are created equal. But this discussion in not about the pros and cons of systems nor is it about which broker is better than another. This is about developing the necessary skill set and the discipline to become knowledgeable and proficient with the tools you are using. That is it in a nutshell. But remember, patience and practice make perfect. Remember, Keep an open mind read and study all that you can while practicing. But stay focused on the system and rules until it becomes yours!
