Immediate Gratification
The single-step solution has entered into every aspect of modern life. Any process or procedure is shunned in favor of a single-step solution. Turnkey solutions are desirable, and as a result, cause legitimate procedures of process to be frowned upon. This mindset is also becoming more and more prevalent in the world of financial markets. Trading bots are enticing many with the promise of turnkey profits.
It’s interesting to note that the most successful professional traders choose to rely on their own capabilities. I am not refuting the fact that trading bots can generate returns. I am saying that skill and experience are superior, which is evident when examining professional traders’ trading strategies and techniques. When in conversation with Crypto noobs, I often see a familiar desire being expressed.
The desire to receive insight as to what the market is going to do, and essentially, where it is headed. In other words, they want a single turnkey solution with a single instruction or point of action. This is unfortunately an unrealistic expectation. Trading financial markets is like taking part in a type of treasure hunt. Successfully navigating the initial clue, leads to the acquisition of the next clue.
It’s a journey that requires an accurate interpretation of the clues being provided at pivotal points in the journey. Traders need to develop a relationship with the market they are trading. A relationship refers to an ongoing commitment, and not merely a single piece of information, or sustenance that will sustain them indefinitely. You cannot eat in advance, you have to consume food at regular intervals consistently.
Imagine someone claiming to have eaten for the week…
I had a large meal on Monday, so I don’t need to spend time eating. I will eat again next week on Monday.
The market is constantly moving, and the price action and other data are continuously communicating. It’s a step-by-step process. In other words, it requires daily commitment. To effectively participate in any financial market as a trader is a relational experience. The final destination is attained by reaching many destinations and pit stops along the way. The market rewards the faithful participants who follow the course, step by step.
Long-term investors, on the other hand, can identify a niche or sector primed for future growth and begin a process of dollar-cost averaging. Once again, this process also requires a dedicated approach and is most likely to be rejected by the individual who would shun the idea of embarking on a journey to trade the market. The data tells a story, and it’s an ongoing story.
Final Thoughts
The idea that anyone can simply begin extracting value from the market is a little arrogant. The market’s food is the capital that enters its doors. It will do everything in its power to defeat those who are not prepared to play by its rules. Strangely enough, abiding by the rules unlocks favor from the market. Due to this being a minority of market participants, the market uses it as a way to attract new investors.
If every market participant lost, no new players would enter the market, and so the market has to give a little. This is given to the dedicated and consistent participants. Of course, there are always the “lucky ones” who happen to be at the right place at the right time. If you want to trade, you have to count the cost before entering the game. Enjoy your weekend, and I will see you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.