30% of traders have not lived through cycle

We often see the same statistics week after week, but every once in awhile you will see something that will make you sit-up and take notice. This is one that caused a jolt. 30% of traders have never seen a full economic cycle. This is like saying 30% of the army has never been shot at. 

This lack of experience creates a very unstable environment. Regardless of how much you have read, there is nothing like living through the down part of a cycle. Saying this is not a pride issue, but one of experience. Market move and you have to experience that sick feeling when they are going lower and there is no good reason and there is no place to hide. Even worse is when there is a good reason but there is nothing you can do about it except work as hard as you can to take advantage of the sell-off. You have to be prepared, do you your homework, and then be ready when other may lose focus.  

Market sell-offs in a down cycle are sharp and fast. Higher volatility is expected. Down cycles are not the same as the slow trends when markets rally. Decisions have to be made fast. This is another reason for why disciplined and systematic is helpful. It can serve as an alternative to experiences not lived.