Trading is Getting Easier
Trading Is Getting Easier, here’s the proof.
I’ve been in this game for nearly 20 years, and I can say with confidence: trading is getting easier. Some of you might have just rolled your eyes at that, and I can understand why. Trading can still feel like a battle. But compared to what it used to be, the landscape has completely changed, and for the better.
Back when I started, broker warnings didn’t inspire much confidence. Website disclaimers typically read something like this: “93% of traders lose money trading these products.” Let that sink in, 93%. That meant only 7% of people were making money. I remember thinking, I’m mad for even trying this but I figured if 7% could make it, I’ll just have to make sure I’m in the 7%.
Fast-forward to today. I was doing some broker research recently and noticed something that kind of shocked me, a broker stating that “only” 62% of traders lose money. Genuinely shocked, I decided to check a few more. The numbers? 63%, 72%, 67%, and I even saw one as low as 50%, which is crazy, and all significantly lower than the 93% when I started.
That’s not luck. Something has changed.
So, why is trading getting easier?
The answer I think is: education and better tools.
When I began, there was no access to trading coaches (yes, there are many bad ones out there but many good ones as well), and I didn’t even have YouTube to help learn the basics. And absolutely no tools to make market analysis less complex or intimidating.
I started trading in UK stocks, with no guidance and no help because none existed. One thing I quickly discovered however was
that stocks move up and down at different times (shock, I know). But because no information existed on this (outside of a Bloomberg terminal) I had to create my own.
So, I built my own seasonal charts in excel to see what stocks outperformed at what time.
But today? You can sit at your kitchen table with a laptop
and access the same level of insight as any institutional trader. That simply wasn’t an option 20 years ago. Tools like our seasonal charts and Commitments of traders’ dashboards, now put professional-grade analytics in the hands of many, not the chosen few.
Take the example of Gold below. It’s an asset everyone is talking about now, but what most probably don’t know is that its recent run is not special. Last year was in fact a very boring predictable year for Gold.
- The blue line of this gold seasonal chart is how it has moved on average over the last 50 years.
- The yellow line is how gold moved last year.
Notice how closely they are aligned. The only thing Gold did differently last year was outperform its average, but its movement was just the same. Simple, actionable info like this is why more traders are making money.
You don’t need a $24,000/year Bloomberg Terminal anymore. You need the right tools and the discipline to use them, and the tools are there for everyone. Almost 40% of traders are now making money, and it’s because they’ve taken steps to get there. They’ve identified their weakness and found solutions.
If you’re still in the 63% who aren’t there yet, ask yourself:
- What are the gaps in how you approach trading?
- Does your trading strategy match your goals?
- What tools or solutions are available that would help?
- Do I need coach?
In my early trading, I wanted to know which stocks had a higher likelihood of performing well at a given time, so I found the answer. You might have a completely different problem, but the process is the same. Identify the problems and focus on solutions to those problems.
Then take action.
The game has changed. The odds have shifted. But you have to meet them halfway.
Start by using smarter tools. Whether that’s with tools like our seasonal charts or market positioning insights or
whatever tool you need to get into the profitable 40% group. And if you need help, get it, whether that’s
coaching, a community, or simply committing to doing the work.
There’s no reason to stay in the 63%. Not when the tools and guidance are accessible.
Happy trading
Ray Gilmour
Founder & Senior analyst at Markets Made Clear.com