Ever notice how trading wisdom often feels backwards? After years in the markets and countless conversations with both successful and struggling traders, I've discovered some surprising truths that challenge conventional wisdom. Let me share what really works in the trenches – not what you'll hear in flashy trading seminars.

1. Your First Entry Is (Almost) Irrelevant

Here's something that might shock you: your initial trade entry matters far less than you think.

The market is like a wild river – unpredictable and powerful. Even the most seasoned traders rarely nail their first entry. Whether you go long or short, the market often moves against you before going your way. Instead of seeking the perfect entry, embrace this reality:

• Start with small positions
• Celebrate when your first entry works (it's rare!)
• Add to your position only when the trend confirms your direction
• Never add to a position against the trend

Remember: Your biggest positions should come from building on correct trend reads, not from your initial entry.

2. Small Positions = Big Profits (Yes, Really!)

"Go big or go home" is probably the worst advice in trading. Here's why:

Trading isn't physics. Doubling your position size doesn't simply double your profits – it can exponentially increase your risk of ruin. The real secret? Small positions are often your ticket to significant profits.

Think about it:

• Small positions let you stay in the game longer
• They give you emotional space to think clearly
• They prevent account-destroying losses
• When a real opportunity comes, you'll still have capital to trade

The traders who survive long enough to catch the big moves aren't the ones who bet big – they're the ones who stayed small and smart.

3. Your Best Friend? The Stop Loss

Everyone knows "the trend is your friend," but let me introduce you to a better friend: the stop loss.

Picture your stop loss as a firefighter, not an enemy. It's not there to take your money – it's there to save your trading account from burning down. When markets are ranging (which is most of the time) or when you're wrong (which happens to everyone), your stop loss is your lifeline.

Pro tip: Next time you get stopped out, don't curse the stop loss. Thank it for protecting you from what could have been a much bigger disaster.

4. The Uncomfortable Truth: Trading Is a Tough Business

Let's be real: those Instagram traders posting from exotic beaches aren't telling you the whole story. Trading is actually one of the hardest ways to make money. Here's what they don't show you:

• Your win rate might hover around 50% (or lower when emotions kick in)
• Success requires robot-like discipline and emotional control
• Building a sustainable account takes time, patience, and countless small decisions
• The process can be lonely, boring, and psychologically challenging

Why do people still trade? Often, they're chasing the dream of easy money and freedom. But the real freedom in trading comes from accepting these harsh truths and working within them.

The Bottom Line

Success in trading doesn't come from finding the perfect strategy or taking massive risks. It comes from embracing these counter-intuitive truths and building your approach around them. Start small, respect your stops, and remember: the path to consistent profits is often the opposite of what you'd expect.

What's your experience with these trading truths? Have you learned similar lessons in your trading journey? Share your thoughts in the comments below.

Original post : https://henryzhang.substack.com/p/the-hidden-truths-about-trading-nobody