Why Is Learning to Trade Difficult?
When it comes to learning any skill, the process is usually gradual. Beginners start small, develop their abilities, and only then do they face higher levels of competition.
Whether it’s chess, football, or any other performance skill, you’re typically matched against others at your level. But trading is different, there’s no beginner’s league. From day one, you’re up against the same markets as seasoned professionals, that makes learning to trade difficult.
The Problem with Competing Against Experts
Imagine being a five-year-old trying to play football against Lionel Messi. You’d be frustrated and probably give up. The same thing happens in trading: you’re constantly competing in the deep end, without an "easy mode" to practice and grow in.
Demo accounts remove monetary risk but don’t make trading any easier. Even with simulators or backtesting, you're still facing the same market conditions that experts deal with. This leads to frustration.
Over 90% of people lose money, and the complexity can make learning feel like a constant uphill battle. Studies show that to keep improving, we need to feel competent. Yet, when you’re a beginner trader, it’s glaringly obvious how far you are from success. Your performance metrics such as return, drawdown and success rate bluntly show where you stand, often leading to feelings of self-doubt and frustration.
Research in psychology highlights that when people become self-aware, they compare themselves to the standards required for success. The bigger the gap between their current level and the ideal standard, the more likely they are to feel negative emotions like anxiety and frustration. This is especially problematic when beginner traders compare themselves to experts like Paul Tudor Jones, expecting too much too soon.
If that wasn’t enough, the market itself is constantly changing. One day’s successful strategy might fail the next because the conditions change - volatility, market structure, and fundamentals change all the time. This adds even more frustration, especially when a beginner feels like they’re just starting to figure things out, only to face a new challenge.
Two Key Solutions to Overcome Frustration
Ultimately, most traders give up for one of two reasons: they either lose all their money or lose belief in themselves after experiencing too much frustration. To avoid falling into this trap, it’s important to recognise two things:
- Understand the process: Just knowing that these challenges exist can help you keep going. If you're struggling or feel like you're not progressing fast enough, you’re probably further along than you think. The frustration is part of the journey, and realising that can build your confidence.
- Have a structured learning plan: Don’t measure your success by your returns in the market. Instead, focus on mastering the steps one at a time. Acquiring deep knowledge, practicing, and gaining consistency before going live. Trading is a complex skill that requires time to learn, just like any other performance-based activity.
If you've been feeling stuck or frustrated, remember that learning to trade is a long-term process. Stay patient, focus on building competence, and structure your learning to reflect your current ability level.