Good evening pimps, thieves & hustlers one and all...
Take a look; very prescient.
http://markettradersjournal.com/
Best post in awhile was this one...
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Becoming a Trader
All Articles, Trading Topics No Responses »
Jun 19 2012
So you have decided to become a trader, or you already are a trader and want to add some new thinking to your skill-set. This is great. But it is important to recognize, trading is difficult at best, and it will take a LOT of time and devotion to become good at it. Much of this reason has to do with you. I might call this the âenemy.â You will learn the meaning of the saying, âI have met the enemy, and I am it.â
For this reason, discretionary trading (where you are making decisions in real time) will likely take a long time to master. If you can do it in 6 months or a year, you are probably doing well. You will constantly be in a damned if you do, damned if you donât situation. And you will have to be free from attachment to ideas and beliefs; maintaining objectivity at all times.
There will be times where you will make a correct analysis, but will miss the trade, or, you will get stopped out and then the market will go exactly where you said it would go.
This will make the establishment of risk / reward difficult, because in order to be successful, you will likely have to let the market breathe. Not trying to force it into your conceptions of what is true or false.
Trading is also difficult because you are constantly entering new positions; re-establishing this risk reward game, over and over again.
This is very different from having bought Walmart in 1979 and you now couldnât give a hoot if it fluctuated 40% during the year, because on each entry, the risk starts fresh, and is not based on previous gains as it is with the Walmart example, but new money at risk.
There are psychological and financial barriers with this that WILL be overcome for you to be successful. Much of the time, the risk might seem to outweigh the potential for return, and the bottom line may come down to ticks.
Further, you may need to know many things all at once; empowering yourself with some form of omniscience. You will miss things, you will see after the fact.
Often, trading is identifying what is about to occur- not that you are seeing into the future, but as the patterns change, it causes the need for re-evaluation in real time.
Many times you will enter a position and your analysis will at some point become the opposite of your position. You have to deal with that and you may have to reverse what you are doing. The market plays many tricks and creates traps, and when you get in them, the market will move strongly the other way.
Much of trading is learning to avoid these situations. When you are wrong, you have to be nimble.
Much of what I have designed in the Nindicator package and written about on this blog is geared around helping you with all these things, but the bottom line will still be you. Because of this, there are many layers to what makes you successful.
Just be aware, it will likely take some serious work to get there and that there are no easy ways- Many things are stacked up against you; commission, slippage/ bid-ask spreads, management of risk, giving back what is gained. etc. etc.
You go down this road alone and must acknowledge you need to be a warrior who progressively hones his skills. If I have not scared you away, in all of this, then we have successfully determined you are crazy, but have some serious warrior blood in your veins.
Having established that, and knowing that you are not simply in denial about all the things stacked up against you, becoming a trader might just be for you.
Thanks for supporting my blog
-------------------------------
peace
hedvig
Take a look; very prescient.
http://markettradersjournal.com/
Best post in awhile was this one...
----------------------
Becoming a Trader
All Articles, Trading Topics No Responses »
Jun 19 2012
So you have decided to become a trader, or you already are a trader and want to add some new thinking to your skill-set. This is great. But it is important to recognize, trading is difficult at best, and it will take a LOT of time and devotion to become good at it. Much of this reason has to do with you. I might call this the âenemy.â You will learn the meaning of the saying, âI have met the enemy, and I am it.â
For this reason, discretionary trading (where you are making decisions in real time) will likely take a long time to master. If you can do it in 6 months or a year, you are probably doing well. You will constantly be in a damned if you do, damned if you donât situation. And you will have to be free from attachment to ideas and beliefs; maintaining objectivity at all times.
There will be times where you will make a correct analysis, but will miss the trade, or, you will get stopped out and then the market will go exactly where you said it would go.
This will make the establishment of risk / reward difficult, because in order to be successful, you will likely have to let the market breathe. Not trying to force it into your conceptions of what is true or false.
Trading is also difficult because you are constantly entering new positions; re-establishing this risk reward game, over and over again.
This is very different from having bought Walmart in 1979 and you now couldnât give a hoot if it fluctuated 40% during the year, because on each entry, the risk starts fresh, and is not based on previous gains as it is with the Walmart example, but new money at risk.
There are psychological and financial barriers with this that WILL be overcome for you to be successful. Much of the time, the risk might seem to outweigh the potential for return, and the bottom line may come down to ticks.
Further, you may need to know many things all at once; empowering yourself with some form of omniscience. You will miss things, you will see after the fact.
Often, trading is identifying what is about to occur- not that you are seeing into the future, but as the patterns change, it causes the need for re-evaluation in real time.
Many times you will enter a position and your analysis will at some point become the opposite of your position. You have to deal with that and you may have to reverse what you are doing. The market plays many tricks and creates traps, and when you get in them, the market will move strongly the other way.
Much of trading is learning to avoid these situations. When you are wrong, you have to be nimble.
Much of what I have designed in the Nindicator package and written about on this blog is geared around helping you with all these things, but the bottom line will still be you. Because of this, there are many layers to what makes you successful.
Just be aware, it will likely take some serious work to get there and that there are no easy ways- Many things are stacked up against you; commission, slippage/ bid-ask spreads, management of risk, giving back what is gained. etc. etc.
You go down this road alone and must acknowledge you need to be a warrior who progressively hones his skills. If I have not scared you away, in all of this, then we have successfully determined you are crazy, but have some serious warrior blood in your veins.
Having established that, and knowing that you are not simply in denial about all the things stacked up against you, becoming a trader might just be for you.
Thanks for supporting my blog
-------------------------------
peace
hedvig
