The cyclical nature of trading

Hi everybody................

For those who are new to trading you must realize that trading goes though cycles, I call it the “cyclical nature of trading”, where the good times are followed by quieter times which is then followed by a few small losses.

In other words, do not expect to make profits everyday or every week or every month. You have to take what the market gives you.

And as we have had a few very very good days this week, I anticipated that we are in for a few harder few days, so you must expect this. You job as a professional trader on this harder days is to just keep your head above water so you are ready for the good times when they come round again.

Too many amateurs expect big profits every day, so when the harder times come round they get frustrated so then they miss the good part of the next cycle. So knowing about the “cyclical nature of trading”, will help you to anticipated what to expect from day to day.

I hope this helps ?

Steve