If you hold the belief that the financial markets are always right, then think again. It is critical that you make peace with the fact that the market and the world of trading has absolutely no structure. It is very unlike the society, your work, your education or your upbringing. Logic is irrelevant in the world of trading.
The market is an arena of unlimited financial gain and loss. The environment is in perpetual change. The small percentage of investors/traders who consistently make money have learned self-discipline, emotional control and the ability to shift with market and go with the flow. They have experienced the pain of losing money, despair and anxiety and soul searching. They have learned to think in the context of probability; something they don’t teach you in school, not even finance and investment courses. Only a handful of people are lucky to work early on as an apprentice for a seasoned trader.
You will go through confusion, anxiety and frustration in your early days of trading. Always keep in mind that trading, weather in a short-term or long-term time frame, is all about probability. Once you ascertain that the probability of a win is high, based on well-thought out and tested systematic trading mechanisms, then you must enter the trade without a shred of a doubt. It is also extremely important that you enter your stop price, so you can be in peace and go on with your daily life. The less time you watch the market or listen to the cable TV financial pundit, trying to make logical sense of it all, the easier it is to be successful in the long-term.
And now we come to THE system to follow. If you are following ETF Trade Advisor trading signals for SPY and SSO, then allocate a time frame of at least one year to follow our system before judging its effectiveness. You will have small losses when the trade is not going in the right direction and big wins when there are winners. Judge the results at the end of a year and follow the rules of stops for risk-control. If you are interested in other timing systems, then be committed for the same time frame in order to be able to judge their system well. If you do not have a system and you follow your gut, you may have a few lucky trades. But eventually you will experience painful times. At that juncture soul searching starts. Most people throw in the towel and stop trading for many years. It is imperative that one doesn’t give up and maintains equity to come back to the arena to trade.