A newbie trader is like the price in the sideways movement. The price, in the sideways movement, changes the direction quickly. The same thing happens with the newbie trader, he changes his methods quickly. The result is that after a lot of action they both remain where they were before.
When you are new in something and someone tells you a thing that is unknown to you think it’s true. That’s why new traders change the strategies every time they see that what they know doesn’t work. I believe that it happens literally in every field.
It happens in every field
Personally I remember when I first went to the dancing school, I was looking at other persons, in my group, who have already frequented a couple of lessons, and they seemed to me very brave. When I became better in dancing, I started to observe that the persons weren’t doing as well as they were doing the first day I come. Actually they weren’t dancing worse, I’m sure that they were dancing better, it was just because I learned something new and I was looking at them from a different point of view.
The same thing happens in trading; it doesn’t matter if we trade futures, FOREX, stocks, etc. It depends on our experience in a specific field. So when we find some information we assume it’s true, until we will prove the opposite by testing. I remember that at the beginning of my trading career I believed everyone. If I saw that using a trading system didn’t bring the expected results (my expectations were very high) and someone on the Internet said that other trading method was great I just believed it and started to use the new method, forgetting about the one I was previously using.
If you never heard about trading and someone will tell you that you can make millions just trading, probably you will believe him. He will give you arguments and he may easily convince you that it’s really easy to make money by trading, because you will not have a reason not to believe him, except that there are not easy legal ways to become rich quickly. Instead, if you have experience in trading, and you’ve tried dozens of indicators, read a lot of books, you would not believe it probably, you would know that it’s not easy to become a successful trader.
Private tutoring with a master trader
When I took a private tutoring with a master trader, I believed everything he said, because I trusted him and the things he was telling me were new for me. But actually when I started testing what he’s taught me, I realized that there’s nothing magical about it. I had good periods and bad periods. So I started looking for a filter and I found one, but I wanted to learn the method the way it was. After a while, I decided that maybe I didn’t understand what he was trying to teach me and as I had already got some experience with his method, I decided to take another day of tuition with him. I wanted to look at the charts together so he would teach me how to select the right trades. So asked him to show me how to filter the trades based on what he has taught me previously. Actually he added some indicators and showed me a new method of filtering. When he showed it to me I believed him, because that kind of filtering was new for me. But when I tested it again I realized that I was doing better with my filters so I just turned back to them.
I think that in trading like in any kind of activity we should keep testing (practicing) the same method in order to become very good at it and develop some kind of intuition. But if we keep changing the things we practice we will arrive nowhere, we will never become successful at it.