Blaming the markets can be an easy way out to explain what happened with your trade but if you really stop and think and stay honest with yourself, you will realize that your results are not the market's fault.
In fact the market doesn't even know know you exist nor it cares about your position(s). Your wins and losses are the reflection of your knowledge/understanding and experience with the market. The reflection of the system you trade and it's long term expectancy.
Now besides having a proper trading system, the part that matters as well is how did you execute on it. Two traders could trade the exact same system but achieve completely different results and the reason is execution. The execution part has a lot to do with emotions.
You can know what/when/how to do but for example if you get too scared or excited about doing it and do it too soon/late, you will have a complete different P&L compared to the trader who did everything as planned.
This is why the greatest thing you have to be scared of is not the market but actually yourself.
Most successful day traders know that their biggest enemy is not the market but themselves and their emotions.
There are several famous former traders who moved on to different careers, such as John Key (who served as the 38th Prime Minister of New Zealand) and Jimmy Wales (founder of Wikipedia). However, this list is made up of traders famous for being traders. The lives of the world's most famous traders are colored by both triumph and tragedy, with some exploits achieving mythological status within the industry.
The list begins with legendary traders of history and progresses to those of the present day.
1. Jesse Livermore
Jesse Lauriston Livermore (1877–1940) was an American trader famous for both colossal gains and losses in the market. He successfully shorted the 1929 market crash, building his fortune to $100 million. However, by 1934 he had lost his money and tragically took his own life in 1940.
2. William Delbert Gann
WD Gann (1878–1955) was a trader who used market forecasting methods based on geometry, astrology, and ancient mathematics. His mysterious technical tools include Gann angles and the Square of 9. As well as trading, Gann wrote a number of books and courses.
3. George Soros
Hungarian-born George Soros (born 1930) is the chair of Soros Fund Management, one of the most successful firms in the history of the hedge fund industry. He earned the moniker “The Man Who Broke the Bank of England” in 1992 after his short sale of $10 billion worth of pounds, yielding a tidy $1 billion profit.
4. Jim Rogers
James Rogers, Jr. (born 1942) is the chair of Rogers Holdings. He co-founded the Quantum Fund along with George Soros in the early 1970s, which gained a staggering 4200% over 10 years. Rogers is renowned for his correct bullish call on commodities in the 1990s and also for his books detailing his adventurous world travels.
5. Richard Dennis
Richard J. Dennis (born 1949) made his mark in the trading world as a highly successful Chicago-based commodities trader. He reportedly acquired a $200 million fortune over ten years from his speculating. Along with partner William Eckhardt, Dennis was co-creator of the mythical Turtle Trading experiment.
6. Paul Tudor Jones
Paul Tudor Jones II (born 1954) is the founder of Tudor Investment Corporation, one of the world's leading hedge funds. Tudor Jones gained notoriety after making around $100 million from shorting stocks during the 1987 market crash.
7. John Paulson
John Paulson (born 1955), of the hedge fund Paulson & Co., rose to the top of the financial world after making billions of dollars in 2007 by using credit default swaps to effectively sell short the US subprime mortgage lending market.
8. Steven Cohen
Steven Cohen (born 1956) founded SAC Capital Advisors, a leading hedge fund focused primarily on trading equities. In 2013, SAC was charged by the Securities and Exchange Commission with failing to prevent insider trading and later agreed to pay a $1.2 billion fine.
9. David Tepper
David Tepper (born 1957) is the founder of the wildly successful hedge fund Appaloosa Management. Tepper, a specialist in distressed debt investing, has made several appearances on CNBC where his statements are closely watched by traders.
10. Nick Leeson
Nicholas Leeson (born 1967) is the rogue trader who famously caused the collapse of Barings Bank. Leeson served four years in a Singapore jail but later bounced back to become CEO of Irish football club Galway United.
The Bottom Line
The dramatic and varied life stories of the world's most famous traders have made compelling material for books and movies. Reminiscences of a Stock Operator, a fictionalized portrayal of Jesse Livermore's life, is widely viewed as a timeless classic and one of the most important books ever written about trading. Rogue Trader (1999), starring Ewan McGregor, is based on the story of Nick Leeson and the collapse of Barings Bank.
Most likely, you already know that there are not a lot of successful day traders – the majority of newcomers leave this field within the first year of trading. The winner-to-loser ratio is pretty high, that’s why many people are so skeptical towards trading. That leads us to the first conclusion: the most successful day traders never give up. The majority give up after losing a certain amount of money while potential winners persevere.
When you read the stories of famous day traders, you will see they have quite a few features in common:
Self-discipline. Trading requires a lot of attention, devotion, and an extensive period of time;
Risk control. Top stock traders understand the risk-to-reward ratio, they know when risks are justified, and when they are doomed;
Courage. The outstanding traders have the guts not to follow the crowd and make their own decisions based on personal analysis;
Thoughtfulness. It’s important to see and understand the market tendencies, and how they are formed;
No emotions. Panic-selling is only one of downsides that emotional traders are faced with. They can get upset because of every little thing like unprofitable order or market fluctuations. Stock trading is not a place for sentiments – you have to stay cold-minded;
Patience. Since the stock market is not easily predictable, it may seem there are no lucky entrance points. Top day traders wait for a perfect moment, even if it takes hours, days, or weeks;
Dedication. Trading should be your hobby, which means you are willing to invest your time and are ready to learn. Don’t limit yourself by reading books – develop your skills by learning strategies, watching YouTube videos and researching tutorials.
Thinking that day trading is a purely passive income is a big mistake! Practice shows that famous stock brokers spend years on learning the basics of trading, and their education is lifelong. Stock market is too unstable and ever-changing, so you won’t go long using your old knowledge only