Transition from Beginner to Pro Trader. How?

One must also get rid of the miths:

1) A good trading system is a simple trading system;
2) Trades must have "Take profit:Stoploss" ratio greater than 2:1 (usually wrongly called risk-reward ratio;
 
Quote from Fractal:

To begin: analyze the trading you do already. Calculate your expectancy (how often you make a winning trade), then your reward:risk ratio (your average win to your average loss).

This might give you a bit of insight into how you see patterns in market behavior. If you actively trade and regularly hit winners 40% of the time, but those winners are equal to your losers in $ value, then you might want to start thinking about how to pick out 2:1 reward:risk setups, while cutting out churn trades that might be generated out of boredom or frustration. Your emotional reactions to a loss tell you a lot about your own expectancy as a trader.

It'd help to start thinking in these terms as soon as possible. While trading, your mind and results may feel like a mess, but over a month of analyzing that data you should begin to see regular patterns in your own behavior. Here is where you will begin to unlock how your own mind operates.

Trading is a very personal skill. It's high performance in that you HAVE to maintain a high level of discipline and self control, like an athlete, but profitable traders vary in their techniques. One person catches 10:1 windfall profits on a very rare basis, another pounds out 2:1 winners day after day with 45% expectancy.
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i completely agree with this assessment, but i would add: keep a good record. log each entry and exit, why you made the trade. looking back over you logbook helps you learn from your mistakes. i analyze each trade once it's over to determine what i did right or wrong.
 
and some traders routiney make a living by pounding out many trades where there "reward" (at least primary and secondary targets ) is LESS than the risk.

again, it's all about positive expectancy

an 80% winner with a 10 pt stop, 6 pt first target 8 pt second target, and 3rd target a runner with stop moved to entry is also a winning strategy.
 
Quote from Bitstream:

if u wanna have a decent shot at this biz go join a prop firm, u need mentorship and access to capital....that's the only place where u can find it.
if u have to rely on your tradin' for your meals and rent u are fucked up big time.
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That's odd, now that my capital has increased Im having problem with liquidity.

Found it much easier to trade with lesser # of shares.
 
you gotta trade what u can

that is one reason many people managing hyooge amounts of money can't beat the market (although I doubt you are there yet) :) . you can't beat the market, when u ARE the market. peter lynch talked about that iirc.

personally, i trade futures (i invest in stocks, but don't trade them as much) and there is PLENTY of liquidity here, if u want to come on over. :)
 
ePandit,

I am a beginning trader with 2 years real trading experience.

I have a positive expectancy edge, that I totally believe in.
I have pretty good risk management controls.
I have plenty of capital.
I have a good trade plan & detailed diary.

But I have FEAR of losing money, being wrong, missing out & leaving money on the table etc.

I am picking these off one by one by having strict entry & exit rules so I don't think I just act. Now its just down to pushing those fear boundaries every trading session.

IMHO pro traders can control their fears and just do what it takes.

Cheers

J
 
Quote from whitster:

another great quote about trader evolution

1) first you learn how to lose money
2) then you learn how not to lose money
3) then you learn how to make money

most traders stay at 1) and then eventually quit
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Perhaps:
1) first you learn how to lose money
2) then you learn how not to lose money
3) then you learn how to make other traders lose money
4) ...
 
Quote from traderNik:

We see so many of these kinds of threads here at ET, and yet I can't remember the last time someone did what I would do in this situation - post some of my trades and get analysis on them. ...
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I'm sure other great examples exist, but a recent addition is Alexander Elders Entries & Exits - found it very helpful to read the traders thoughts before and after the trade entry/exit, and then Elder's after-the-fact comments.
 
Quote from zerosum111:

this post hit the nail on the head. as soon as i quit looking for the perfect system/indicator and focused on risk management is when i really became a trader....
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Absolutely!
When I read quotes here on ET, I wonder if some of the best traders forget the stepwise progression to becoming successful. In their attempt to sumarise how they 'became' they often forget the difficult to explain psychology, money management, and instead focus on the newbie questions (which program, broker, stock etc).

It does take years in any profession to reach expertise. I sometimes think that what I do as a physician must seem so trivially easy to patients, but the reality is that all that training and experience has become automatic.

I know I could never be what I am now as a physician, without years of experience.
 
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