Statistics of success and failure of traders in the financial markets is dry and true: the vast majority of traders lose money,  while only a small percentage of market participants consistently profit from price movements.  In this article,  offering rather non-standard conclusions, and based on my 11 years of experience in the financial markets,  I will try to answer the question: what prevents traders from achieving stability?

Neglecting trends.

The overwhelming majority of traders trade at the moment when,  in their opinion,  there are optimal conditions for entering a trade. Most often, they provide some kind of analysis, technical or fundamental, as a basis for making decisions, and rely on the fact that their pricing model works, as history tends to repeat itself. However, if a particular model contradicts the current market trend, there are no guarantees that it will work and the deal will succeed, since the market, as the well-known stock trader Jesse Livermore said, has a tendency to move along the line of least resistance.

If a trader takes into account the trend and is not afraid to buy a growing asset, and sell a falling one, he will ensure his long-term success in financial markets by at least half. To expect that the falling asset suddenly stops and takes off is neither justified from the standpoint of the logic of price movements, nor from the standpoint of the expectation of transactions against the trend.

Bid on technical analysis.

The main task of technical analysis tools is to identify an asset that could potentially form a strong direction for price movement and provide an opportunity to join the upcoming or current rise or fall.

Most traders view technical analysis as a prediction tool that allows you to understand when an asset grows or falls. In other words, analysis for traders becomes the primary decision-making tool, whereas it is secondary to the main factor — price changes directly.

The price is primary, and technical analysis allows determining the moment when the conditions for entering the market against the background of the developing price movement will be optimal from the standpoint of the risk / profit indicator. Trying on the basis of indicators, whether levels, to understand where the price will stop, at what point it will go up or down – this is an incorrect use of analysis tools and a guessing game rather than the correct use of analytical tools.

Price movements, primarily trends, should be the main tool of the trader, while technical analysis tools can help find the best opportunities for opening and closing a transaction, but to a lesser extent should be the reason for the transaction.

Belief in the trading system, not in yourself.

One can argue for a long time on whether the trader needs a trading system. Of course, all market participants are aware of its importance for stable and successful trading, but for most of them finding some effective system becomes the main goal, sometimes even more important than accumulating personal experience in making deals and tracking price changes.

In financial markets, there is no “grail” and there is no single correct set of conditions from price formations and optimal timing to constantly earn. Trader’s experience is what is the best prompter, and framing the experience in a trading plan for a given transaction is important, much more important than just going through the optimal analysis tools for filtering trades or trying to reduce drawdowns within the framework of the system created by the trader.

The presence and use of the trading system has a serious psychological trap. If the system causes losses and does not allow the trader to achieve the goal, then the trader tries to improve it, optimize it, completely forgetting that only the trader is responsible for making transactions. Putting the trading system between themselves and the market, the trader falls into the trap and disclaims responsibility for the transactions made, although he does not notice this.

You can earn in the financial markets without a trading system. If you fail to create an optimal strategy – no need to try to go in this direction, it is better to develop your experience and your professional intuition regarding price changes. As already noted, there is no “grail” on the financial market, and every trader must determine for himself what will allow him to earn.

High expectations.

Stability and financial freedom for most traders are the goal for which they come to the markets, in particular, to the cryptocurrency market. However, there is no guarantee that the trader every week or every month will profit from the market. There are unsuccessful trading series, there are even months when it is impossible to overtake the benchmark, or even earn money. This is normal. Earnings guarantees in the financial markets are not.

If a trader agrees with this statement and does not by all means try to jump above his head and by all means earn money during the reporting period, he will remove from his shoulders a heavy burden of responsibility for meeting the requirements that are usually placed on successful traders.

The most important thing is stability in the long term, and it can be achieved only if we accept the unsuccessful trading results as an integral part of the work in the markets.

Profit and stability will come themselves, as soon as the trader realizes that the financial markets are a bit more complicated than in the books on how to make money trading.