Trading for a living; only very few can

Most aspiring (as well temporarily successful) traders fail because they believe all they require is an "edge". But hint hint, they don't call them "edges" for nothing, for they are meant to be smoothed away over time.

Trading is difficult to teach because the most effective traders know their markets inside out and take each situation as they come, one by one, while novices want easy to apply templates for rinse and repeat patterns. When I think in terms of my own trading, I can no longer understand/apply the concept of "edge" beyond pure experience and action; either I know the market and time frame I am trading, and take the proper steps to take full advantage, or I don't -- and lose. What experience gives you above all else is knowing exactly why you win or lose, as opposed to just guessing/tweaking the "odds" in retrospect.
 
Quote from illiquid:

Most aspiring (as well temporarily successful) traders fail because they believe all they require is an "edge". But hint hint, they don't call them "edges" for nothing, for they are meant to be smoothed away over time.

Trading is difficult to teach because the most effective traders know their markets inside out and take each situation as they come, one by one, while novices want easy to apply templates for rinse and repeat patterns. When I think in terms of my own trading, I can no longer understand/apply the concept of "edge" beyond pure experience and action; either I know the market and time frame I am trading, and take the proper steps to take full advantage, or I don't -- and lose. What experience gives you above all else is knowing exactly why you win or lose, as opposed to just guessing/tweaking the "odds" in retrospect.
More...

DAMN .... this is good stuff....oh YES YES....

Lot of wisdom packed in each sentence here.

One of the best posts ive ever seen on ET.

No Bullshit here.
 
I think there are essentially 3 things that need to be in sync in order to be a successful trader... but not necessarily in the following order...

1) entry exit strategy

2) mental discipline to carry the strategy i.e. not easily spooked by minor market fluctuations while attempting to ride a trend.

3) money management

A chain is as as strong as it's weakest link and if any of the above is lacking significantly enough then all of them suffer to the extent that you will fail.

The best traders can hit the high notes on all 3 and sustain it.
 
Quote from NY_HOOD:

also,a good trader can see/spot things that most others can't.
More...

I agree!

I think that'd be the main reason why possibly a useful trading system/ direction could be sometimes scrapped by its designer who would never return to the same useful system/ direction ever again!
 
There are many desires we all have during various stages of life. How many young lads had a vision of being a great ball player? How many young gals had a vision of being a great ballroom dancer with prince charming?

I was a wrestler and a pitcher during high school sports. Never had a desire to follow wrestling but surely thought how cool to be a big league pitcher. Well the folks did not have the money for college and the grades were not great because chasing skirts seemed more important at the time. Joined the Army for one reason and one reason only.........to get the obligation of military service behind me so not being drafted because in days gone by you either joined or drafted if not married or in college. Did not want to get married so i joined. In retrospect it was a wise decision to join because discharged just before the shit hit the fan in Vietnam.

OK, to make a long story short.............. HOW BAD DO YOU WANT SOMETHING? How much are you willing to sacrafice to get what you want? Do you really, really want something so bad that all else will play second fiddle as you chase your dream?

Those and more must be answered beforehand because if you want something that is out of reach for the average person you either have what it takes or else you are blowing smoke in your own shorts and do not know it. Most people seek what is "NORMAL" and leave it at that. Trading for a living is NOT normal. Before one even considers trading for a living he/she must have a DEEP desire to succeed in something that is difficult and will slap them silly before throwing in the towel in frustration and broke.

I started trading thinking like most people......... How hard can this be? I am smarter than the average bird while realizing there are smarter people than me. Hell, i can do this..........Ring, Ring, here is 30 grand open account for me. I did fine in a few stocks but as usual got sloppy and stepped back to ask a few questions.

Do i really want to do this? It is not as easy as i thought, can i REALLY DO THIS?

I answered yes to the above questions knowing full well it would NOT be easy. The ex sought security down the road also, she married a nuke scientist and i switch to futures to make up for lost time.

Do you really have the desire to pay the dues to become a TRADER? I said: YES because i knew i could do it and i knew corporate America was not gonna worry about me later in life. Trading must be desired and have a mission to fulfill. My mission was filled as a made my own retirement and the heck with corp America.

You most want it and want it "BAD"

Daytrading is not for daydreamers.
 
Quote from bighog:


You most want it and want it "BAD"

Daytrading is not for daydreamers.
More...

BH

I seriously doubt that most of the people you are writing to have the vaguest notion of what you are talking about.

regards
f9
 
Key factors for success I would bet on are:

1. Risk appetite.
2. Competitive ability: history of winning at sports, games, prop bets, cards, sports betting.
3. Analytical ability
4. Self control
5. Hatred of losing

Great traders are the ones who, like michael jordan says in his book, Want the f*cking ball in their hands when the seconds are ticking down and a final shot must be made.

Notice this is the opposite of corp. america "average joe" thinking, where the rule often is to shift blame, fail to stand out or make decisions, and hope average performance combined with schmoozing will get the promotion.
 
Who wants it more today, Federer or Nadal? I will go with Nadal. Roger is great, but like Tiger Woods we like to see the new kids on the block do good. Justine Henin might come back in womens tennis. She is a perfect example of "WANTING IT" when that little girl made up for being small in size with speed and skills laced sprinkled with determination to win.
 
Quote from Nattdog:

Key factors for success I would bet on are:

1. Risk appetite.
2. Competitive ability: history of winning at sports, games, prop bets, cards, sports betting.
3. Analytical ability
4. Self control
5. Hatred of losing
More...

The one and the only key is the sole desire to succeed in my experience.

If you waltz into an unknown and very difficult arena with an analytical approach, you are denying yourself the killer mentality.

If you can get away with it then well and good.

regards
f9
 
Quote from Susannah:

I've always thought ADHD for some, especially ones that don't seek that label but have it forced on them (such as school children who aren't paying attention well), is just another label for easily bored (and, a lot of times, highly intelligent). I can see how people like that would do well if they liked the market.
More...

Touche!! I have been seeing this for so many years... ever since school actually... there are kids who are intelligent if you care to realize it but are so bored by the level of education that they are not motivated to perform.. often these kids were labeled as ADHD.. I was among them.. if the teachers are the same in my high school they can tell you the stories.. A brief overview of those days... I never studied.. I never carried books.. I was there for every class.. but I never spoke unless I found it necessary to prove something wrong or just argue :)... I never sat through a full exam or completed a paper but I always scored 100% on what I attempted... The explanation to this was (as given) thats all I knew... I dare say... at one point i started believing it myself...

I had to give an IQ test in grade 12.. there were a whole lot of pattern recognitions [not charts ofcourse ;) ] etc.. I dint know how I scored until the school psychologist made me give the test three more times... different tests.. quite consistent results.. for the first time I was given credit for something.. perhaps it was the first time in all those years that they discarded the idea that I was ADHD.. I had a score in the range of 156-158..

After all these years I can say that I'm not a case of ADHD.. I have found my style but it was a struggle... I bounced around... tried a whole lot of different things... messed up like crazy in some...

Now I think I can say the following for sure...
IQ does not equal to being successful.. it not intelligence which makes a trader different in term of success..
I completely disagree with the ADHD theory...
I have an editic memory, I do not forget conversations, visual stuff (I have an extremely good direction sense thanks to this) and helps me remember charts.. BUT!! I do need my journal... If you are not editic, you do not loose out either you will have to be more disciplined with your journal.

What Matters The Most:
Find your style..

Customize your TOOLS.. find the right ones.. (this is important they vary for everyone... look into a different industry... Every chef has a knife that suits them... no one else is allowed close to them and they go back home if they dont have them)

Discipline.... Discipline... Discipline... Not just your rules but your emotions too.. EQ/Emotional Intelligence : it is not innate and can be taught/self taught...
Much like a warrior...

Cheers!!

Bushido
 
You must log in or register to reply here.
Back
Top