Are You Really in the Market to Make Money?

May 2, 2025 by vk

Ask any WealthLab user why they're building and testing trading systems, and the standard answer is predictable: "to make money" or "to gain financial freedom." But the uncomfortable truth? Many traders are in the markets for entirely different - often unconscious - reasons. And until those motives are examined, backtests won't save them.

Making Money Is Mechanically Simple

On the surface, profitable trading is straightforward. At WealthLab, we provide the tools:

Design and backtest a strategy with positive expectancy.
Apply proper position sizing aligned with your risk profile.
Execute consistently, across drawdowns and winning streaks alike.
Cut losses, let profits run.

So why do so many fail? Despite access to powerful software, research capabilities, and a wealth of educational material, Retail traders often still lose money. The issue isn't tools - it's behavioral.

The Gap Between Intentions and Actions

Even experienced users sabotage their own strategies:

Letting losers run, cutting winners short: The trader trusts the system... until real money is on the line.
Impulse trades override system logic: A news flash or a hot tip sidetracks even a well-tested plan.
Breaking the rules: Ignoring stop-losses, skipping valid signals, or changing position size mid-trade - all signs the trader, not the strategy, is in control.

Despite the backtests, the user behaves irrationally. Why? Because they're not really trading for profit. Some deeper force - ego, fear, boredom - is driving the bus.

Subconscious Beliefs Sabotage Strategy Execution

In the heat of the market, we don't follow our plan - we revert to our programming:

Need to be right: Refusing to exit losing trades because "the market will turn."
Revenge trading: Making impulsive trades after a loss, trying to "get it back."
Thrill-seeking: Constantly tweaking systems or trading discretionary setups to feel alive.
FOMO: Jumping into trades that your backtest would never have approved.
Boredom: Opening trades just to escape the dullness of disciplined waiting.
Validation seeking: Trying to prove something - to yourself, your peers, even your past.

All these behaviors compromise strategy fidelity. And once you break your own rules, your backtest becomes irrelevant.

At WealthLab, we encourage data-driven development. But if you're serious about trading, it's not just the strategy code you need to debug - it's your mental code.

If you can't follow our strategy, the problem isn't the system - it's you

Take time each day to reflect: What trades did you take? How did you feel? Did you follow the signals - or override them? Why?

Over time, patterns will emerge. You'll see clearly whether you're trading the strategy - or being driven by fear, impulse, or ego.

Final Thought