What is a trader? Before I begin I'd like to say that I do not know everything. My beliefs are based on the things I have learned so far. There is a possibility that I may have interpreted things incorrectly, so I encourage others to correct me if I am wrong.
I'm going to try and be brief answering your questions. If you need me to elaborate on some things please feel free and ask.
Just because one merely does the action of buying and selling security does not make him a trader. I believe a true trader has reached a certain psychological level. There are traders out there with different kind of methodologies. Their approach to the market may be different, but they have similar traits. It appears to me that traders have a true passion for trading. It isn't mainly monetary, but I think traders just want to master their craft. With any endeavor, people will get knocked down, but it is those with persistence and determination that get back up and reach higher grounds. Traders also have a positive attitude of things, and they are willing to take responsibility for their own actions.
In relating to their craft. I see traders having no attachments to money what so ever. The number in their account is just a scorecard. If the score is good, they know they're doing something good. If the score is bad, then they know there's something lacking within themself. So they are not affected by their everyday gains and losses. They understand that profit and loss is part of their system just like any other business. A business man's goal is to minimize expense, and maximize profits. That's what a trader tries to do.
A trader is at peace sitting in front of his screens. He waits patiently for certain patterns to arise. When these patterns occur, he follows a plan he has already established. Even if his mind was cluttered with emotions, he knows he can't take trades he normally wouldn't take because he has trading rules that prohibits him from taking trades on a whim. I've heard someone say that success is a journey, not a destination. I think traders are on a journey to improving on their craft. They understand that to become a better trader it starts from inside.
This is how I see a trader. As far as how I see myself. To be honest, I haven't done much thinking in that area. I think it's a good time to begin it don't you think? Well I do know about the psychological aspects to trading, but it's always easier said than done. Due to my situation I cannot trade right now. Besides, I'm not ready yet. I'm using a government computer right now, and I'm not allowed to use them for financial gain. So with that, how am I going to test to see if I do have all the psychological aspects, because you can't tell till you bet... with real money.
I got into craps. I developed a system, which has a positive expectancy. I implemented my knowledge of trading to craps. I understand that my system can result in a string of losses. Some nights I may have a net loss, but it's overall that counts. In the beginning I was a bit emotional from the wins and losses that I encountered. Eventually I got my satisfaction from following my plan. It came down to a point that I was looking at the dices rolling, and I didn't care whether I won or loss. I knew I was ready to trade. I thought I had what it takes to succeed in the markets. Then something wonderful happened. After some of the money I have made, I became fearful of losing my profits. I was actually happy about it, even though it made me feel sick to my stomach. Why? It's a lot better that it happens now when I'm betting 10's and 20's, versus losing my trading stake I've been saving for 8 months. I still stuck to my system and was still making money. Until one night these guys brought a bunch of money. I saw all the cash and I was like I'm gonna get it all. I ended up losing a lot of money that night. I laugh at that too, cos now I encountered both fear and greed. Another great thing I realized is that I'm not as strong as I thought I was.
It was a humbling experience.
My main purpose with craps is to improve my discipline, and to test where I'm at psychologically. I realized that I am susceptible to fear, greed, and overtrading. I am working on my plan with someone on this board. There are some things I need to test out. Once I get my rules set, I think this can cut down on trades that are psychological mistakes. Such as taking trades out of greed, hanging on to losses due to fear, and taking trades out of boredom. I realize I am just human, but that does not mean I cannot improve myself. So the question I asked earlier is how can I improve myself?
...sorry, I tried to be brief.
Andy
I'm going to try and be brief answering your questions. If you need me to elaborate on some things please feel free and ask.
Just because one merely does the action of buying and selling security does not make him a trader. I believe a true trader has reached a certain psychological level. There are traders out there with different kind of methodologies. Their approach to the market may be different, but they have similar traits. It appears to me that traders have a true passion for trading. It isn't mainly monetary, but I think traders just want to master their craft. With any endeavor, people will get knocked down, but it is those with persistence and determination that get back up and reach higher grounds. Traders also have a positive attitude of things, and they are willing to take responsibility for their own actions.
In relating to their craft. I see traders having no attachments to money what so ever. The number in their account is just a scorecard. If the score is good, they know they're doing something good. If the score is bad, then they know there's something lacking within themself. So they are not affected by their everyday gains and losses. They understand that profit and loss is part of their system just like any other business. A business man's goal is to minimize expense, and maximize profits. That's what a trader tries to do.
A trader is at peace sitting in front of his screens. He waits patiently for certain patterns to arise. When these patterns occur, he follows a plan he has already established. Even if his mind was cluttered with emotions, he knows he can't take trades he normally wouldn't take because he has trading rules that prohibits him from taking trades on a whim. I've heard someone say that success is a journey, not a destination. I think traders are on a journey to improving on their craft. They understand that to become a better trader it starts from inside.
This is how I see a trader. As far as how I see myself. To be honest, I haven't done much thinking in that area. I think it's a good time to begin it don't you think? Well I do know about the psychological aspects to trading, but it's always easier said than done. Due to my situation I cannot trade right now. Besides, I'm not ready yet. I'm using a government computer right now, and I'm not allowed to use them for financial gain. So with that, how am I going to test to see if I do have all the psychological aspects, because you can't tell till you bet... with real money.
I got into craps. I developed a system, which has a positive expectancy. I implemented my knowledge of trading to craps. I understand that my system can result in a string of losses. Some nights I may have a net loss, but it's overall that counts. In the beginning I was a bit emotional from the wins and losses that I encountered. Eventually I got my satisfaction from following my plan. It came down to a point that I was looking at the dices rolling, and I didn't care whether I won or loss. I knew I was ready to trade. I thought I had what it takes to succeed in the markets. Then something wonderful happened. After some of the money I have made, I became fearful of losing my profits. I was actually happy about it, even though it made me feel sick to my stomach. Why? It's a lot better that it happens now when I'm betting 10's and 20's, versus losing my trading stake I've been saving for 8 months. I still stuck to my system and was still making money. Until one night these guys brought a bunch of money. I saw all the cash and I was like I'm gonna get it all. I ended up losing a lot of money that night. I laugh at that too, cos now I encountered both fear and greed. Another great thing I realized is that I'm not as strong as I thought I was.
It was a humbling experience.
My main purpose with craps is to improve my discipline, and to test where I'm at psychologically. I realized that I am susceptible to fear, greed, and overtrading. I am working on my plan with someone on this board. There are some things I need to test out. Once I get my rules set, I think this can cut down on trades that are psychological mistakes. Such as taking trades out of greed, hanging on to losses due to fear, and taking trades out of boredom. I realize I am just human, but that does not mean I cannot improve myself. So the question I asked earlier is how can I improve myself?
...sorry, I tried to be brief.
Andy
