Myth: Trading is all about making money
Reality: Trading is about developing skills
Myth: Most people make money trading
Reality: The high majority of people lose money trading
Myth: Managing profits is the most important part of trading
Reality: Managing losses is the most important part of trading
Myth: The key to successful trading is good trade entries
Reality: The key to successful trading is good trade management
Myth: Trading is about having the best trading system or indicator(s)
Reality: Every trading method has ‘some’ probability of success, proper trade management greatly increases this
Myth: “The futures are way up this morning, today is going to rock!”
Reality: It has (past tense) already “rocked” … the question is, where does it go from here?
Myth: “Market has bottomed, ES has upside potential of $XXXX!” (Analysts)
Reality: The market is already up more than 15% this month and is hitting resistance
Myth: “BONDS are going up, they’re looking really strong!” (Momentum Traders)
Reality: Can you guess who are long the BONDS?
Trading Myths
