Many traders operate with the mindset that they must “close in profit” every day or week. Is this really necessary, and what can such a rigid approach lead to?
Obligation to Generate Profit
This mindset can arise if, for example, you took out a loan to trade on the exchange or quit your job thinking you would steadily earn on financial markets. Both scenarios rarely align with professional trading. Market conditions vary, and there are no guarantees of regular income from this activity.
A beginner might think that earning 50% in the first month proves their professionalism. This is a dangerous misconception. Short-term success (a week, month, or even quarter) may result from luck or trading in a favorable season rather than trader skill. Therefore, the principles guiding your actions must prove viable in the long term.
Closing a trade with a small loss while adhering to your trading tactics is a worthy result, and not everyone can act this way. Doubling an account by violating money management principles and deviating from your tactics is a poor indicator, even if the account balance increases.
If a trader believes such a result stems from exceptional professionalism and market understanding, and then opens an account equal to their annual income, borrows money for trading, or quits their steady job, the consequences will be dire. Therefore…
…learn to do nothing
Most traders consider a day without profit a failure because they did so much. They thoroughly researched the market, read extensive literature, pondered trading, studied charts, and actively traded overall. But more does not mean better.
Often, inaction is the best action you can take. To profit from the market, you do not need to trade frequently.
Take hedge fund traders as an example: managing millions or billions of dollars, they do not constantly think about trading. Instead, they meticulously scan markets for their “pearl.” They seek trades worthy of risking their investors’ capital. You should think similarly.
Your money is at stake—hard-earned, not to be squandered. Wait for trades on larger timeframes, such as 4-hour or daily periods, that are so obvious it would be foolish to pass them up.
But do not overcomplicate it. Traders often miss profitable trades because “they look too good to be true.” Instead, they settle for less attractive positions after spending time seeking confirmations. Avoid such biases.
