Don't guess, find out + advice the double edged sword!

In my case i have found that the more experienced i have become at trading the more reluctant i have become to give advice, not because i don’t want to help new traders but because of the realisation of how different everyone is; and also how difficult it is to give a new trader something that they feel that they can actually use, so that they come away from a conversation feeling that they have actually gained something.

If you are a newbie trader by the time you are anywhere close to being ready to trade full-time for a living, the usual questions like, ‘How long does bla bla bla take…?’ or, ‘What is the most lmportant la diddy dum?..’ won’t be an issue.

Success in trading, whatever your definition of success is, is not haphazard and the sooner you become methodical about what you are doing the better. Learn to love Excel baby!

We as humans are built to see patterns and make associations but we are not always very accurate. One thing you can start doing is when you feel you have anecdotal evidence, or a feeling that something is happening, start gathering data in a spreadsheet on whatever it is and actually check to see if what you think is happening is actually happening. This will allow you not only to make better decisions but to ask better questions which will lead to…you guessed it more better decisions.

How do you know if you are improving as a trader or what you are improving at if you don’t have a way of comparing and measuring? Hmmmm hahah

Profit and loss doesn’t tell the whole story and can be very misleading.

Fact:- Newbies hate trading plans!

Your trading plan should not be a boring thing that you will ‘never use in real life’ or a chore but it should contain the best solutions you have right now to all of the problems you have ever had as a trader, you should know it inside out.

It should become one of the most valuable things you own and you will more than likely use it everyday.

As the years go and you become more experienced, some if not all of what is in your plan will change but you will see a progression. In say 2017’s plan you will see the part 2013’s plan played in getting you there and how you have improved your processes.

Again, you are looking for a custom fit. Trading shouldn’t make you unhappy or make you feel like you are doing a final exam in Physics everyday, [I]think i read that somewhere[/I], even if you enjoy physics :slight_smile: .

Yes you will more than likely have to overcome some very difficult setbacks to get where you want to go but on the whole, the way you trade should be a good fit for you. Why make things harder than they need to be?

For some knowing the win rate of a strategy is enough to give them confidence and belief, for others it’s not, but you should know it!

Anyone can watch the best boxer, golfer or tennis player and see their technical skills but can you go out there and do it to the same standard?

Of course not, or you would be competing against these guys and not watching .

Trading is a practical ‘sport’ and requires pracitce and repetition, until you have mastered your niche… and even then, yes you guessed it, you have to practice and adjust to maintain and improve your skills.

Experience of all possible conditions in the market as well as your personal ‘ups and downs’ is a huge advantage if not a necessity.

I hope i have given you something you can use. Get methodical, guessing the answer and hoping for the best is not good enough!

End of unsolicited advice for 2016. I’ll leave the rest to The Master aka Bearish

1 Like