From the book

The secret of trading

Do not look for it. There is none.

If, like me, you have spent hours and weeks hunting for the infallible strategy, the miracle indicator or the bot that prints money on its own, I can assure you: it was a waste of time. At best that search let you test a few tools; at worst it took you further from reality.

There is no magic formula. If a book promises you a 100 % win rate: bin it. If an online course promises you will quit your job in six months flat, run. The influencers flaunting obscene luxury usually make their living off your views on social media, not off their trading.

The only truth, the only road to profitability, is work.

Trading is a profession in its own right. To become an architect you need years of theory followed by years of practice. Trading is no exception. You have to learn the basics, understand them, then build the experience that produces a strategy and, above all, the right state of mind.

If I had to name the pillars of that work, beyond a full command of the basic concepts, they would be these:

  1. 1
    Risk management

    It is your seatbelt. Easy in theory, but it takes iron discipline. Without it you will not last long enough to become profitable.

  2. 2
    Probabilistic thinking

    Trading is not about being right, it is about handling probabilities. A good trader can lose five times in a row and stay profitable, because success is measured over a hundred trades, not over the next one.

  3. 3
    Self-control

    By far the hardest part. You will have to make decisions that go against everything your body is telling you, the fear of losing or the lure of the gain. And that is very hard.

  4. 4
    Backtesting and the journal

    The work is not done only in front of the live market, but in the evenings and at weekends. By reviewing thousands of past candles you train your eye to recognise the setups without hesitating. Your journal will show you your weaknesses.

  5. 5
    Motivation

    The market will test you relentlessly. You will be put to the test very quickly. Every day you will have to question your strategy, your approach, yourself, and find the strength to keep going through the hard stretches. Because there will be some. Many.

  6. 6
    Balance

    Never let trading become your whole life. It is a solitary job and it can swallow you. Keep a body that moves, and other projects that have nothing to do with the markets. That is not wasted time. Other sources of income and of meaning are your real safety, financial and mental. And never judge your worth on a green or a red day. The market closes; you carry on.