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No Barrier to Entry

The lack of trading education is the biggest reason most new traders fail.

By The Street TradingPublished 3 years ago 3 min read

No barrier to entry is the reason why so many retail traders fail. Apps like Robinhood entice the uneducated to ‘take a shot’ at Wall Street without the slightest bit of education. Even a broken watch is right twice a day, but that type of philosophy will most likely end badly.

Only those that seek the very best for themselves will succeed in this business. Why? Because they understand that it takes actual effort.

That’s what we mean by, ‘no barrier to entry’. If you were required to pass a simple exam to trade capital; even at the retail level, there would be far less casualties in the market. When you have to put in effort at something, you tend to appreciate it much more than if it was easy to obtain.

Anyone can get lucky with a random stock and make some money. It’s the all-too-common story of making money in the markets then giving it all back; and then some, that so many fall victim to.

To trade at the professional level, regulators require market participants to pass certain exams. So, at the very least, professionals understand what it is they’re actually doing. Not that a license equals success; on the contrary, but it does at the very least, prove a level of commitment, knowledge and responsibility.

Don’t get me wrong, it’s not a requirement for success; not at all. However, those traders that continually blow up their accounts are most likely those that haven’t taken the time to truly learn how this business operates.

The herd mentality fills the markets each and every day; so many fall to the wayside as collateral damage. Professionals prey on the uneducated; in fact, the uneducated provide the liquidity for Smart Money to operate at levels they desire.

Most retail buy at the very top and sell at the very bottom. Institutions do the exact opposite; they’re the ones taking the other side of most retail orders just before the real move leaves without them.

If/when you understand this simple reality, you will begin to trade in an entirely different way. Key is to focus on what you can control.

As mentioned, we can't control the markets behavior, whether price moves up/down/sideways, but what we can control is how we react to what the market shows us.

It's not just about learning fundamental and technical analysis; market psychology plays a significant role in whether a trader succeeds or fails in this business.

Take the time to learn about the business and more so about yourself. Understanding the psychology of other market participants is vital, but knowing about your own is far more paramount.

About The Street Trading

Consistently Profitable.

That's The Goal.

Start with a crystal-clear vision of where you’re headed, then effectively lay the foundation to reach that goal through a systematic process.

That's The Street Trading.

We provide a straight-forward, no-nonsense results-driven trading education, that cuts through the noise to teach new and existing traders on how the stock market truly operates.

Our attention is focused on building actionable knowledge about the markets from the ground up. We construct a foundation of the fundamentals behind consistently profitable trading that you can build a career on. Take the guess work out of trading and ultimately understand what moves the market to finally flow with the Street and Trade with Clarity.

Day Trading | Swing Trading | Position Trading - It all comes down to managing risk and market psychology.

If you’re interested in learning more about what we have to offer you as a trader, come check us out at www.thestreettrading.com

We look forward to joining you on your trading journey!

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About the Creator

The Street Trading

We provide a straight-forward, no-nonsense results-driven trading education, that cuts through the noise to teach new and existing traders on how the stock market truly operates.

Come check us out at www.thestreettrading.com/

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