How much money am I willing to lose? How much time can I spend trying to learn how to trade and then actually trading? If I don’t succeed within the time frame I’m working with, what’s my next step? How will I define trading “success”? Is trading going to be a hobby for me or an actual career?
I can think of so many questions I can ask myself!
In my humble opinion the hard part is not so much about questions because most of the common questions I.E emotions, risk management, FA, TA, strategies etc etc have already been answered loads of times on here and numerous other websites and books.
The hard part for me is that im trying to teach myself by myself. Where as when I was younger at school, college, and work related courses throughout my life, I have been taught a subject directly by a person therefore any problems and mistakes are supervised, assessed and corrected pretty much on the spot. Making it much easier to learn.
Im guessing its a bit like brick university vs open university. Brick unversity will be much easier than open university due to constant direct contact with a teacher, mentor, tutor etc.
Just my thoughts ive only started to learn myself.
im not the an expert to answer that but i guess many seasoned and successful traders may ponder and ask was all that time consumed worth it. Also thrill seekers will probably come unstuck eventually ,i believe qualities like patience outweigh knowledge so ok “im good at waiting for something happen”
Two questions that have been/are crucial for me to succeed, beyond knowledge on HOW to trade: - Does Forex trading match with my personality?
e.g. if you are rather an impulsive person, or you are result-oriented and focused on impact by default, this WILL directly impact your trading results. For example, in my daily job, I am always looking to have an impact on what I do. As trading is a game of patience most of the time, this could lead (and has already led) to getting out of trades too early, chasing suboptimal opportunities…
If you don’t know yourself by now, the markets will teach you who you are, believe me.
- Which trading timeframe suits my lifestyle?
I guess most of you might (hopefully) not quit their dayjob to start trading fulltime from scratch.
I used to start as a daytrader, but the hours were incompatible with my dayjob.
Currently I am swingtrading, focusing on 4H bars, and while it’s still sometimes trying to find a balance between checking for opportunities and doing my daily job, it is much much more manageable than before. Like with any new habit, you need to find a way to as seemless as possible incorporate trading in your daily life. If you do not succeed in this, regardless of how good your trading skills are, you will never be a trader in the long run.
Well, in order to learn from one’s mistakes, it needs to hurt. So in this case it implies losing significant money. I don’t make certain mistakes anymore because the brutal punishments are now hard-wired into my brain. If I had speculated with less money, it would not hurt me and I would not have changed my behaviour.
HOWEVER, this is of course at the moment I did not know of my ‘too positive’ mindset.
If you already know you are impulsive by nature, you don’t need the market to prove you once again.
Keeping a trading diary, including your thoughts before and after each trade and the decisions you make, can be your best guide I believe when you review afterwards.
Best scenario is to reflect on your behavior and personality on a recurrent basis before the market needs to give you a hard time for not making this analysis properly.
If your constantly having to reflect on your behavior and personality then you have other issues altogether.
All the stuff about psychology is covered on thousands of web pages, books and forum posts, and to be honest they are things a person can work it out their self without people having to tell them.
Surely the most important beginner questions are the practical ones I.E how to navigate your platform, implement strategies, time entries/exits, managing money and risk techniques etc.
Not at all, I’m just saying which questions were crucial for me to see answered.
And yes, I firmly believe that analysing behavior when trading greatly increases chance of success. Just because there is a tremendous amount of decisions, fears, insecurities that are part of the unconscious, but you should be aware of. I’m just mentioning here which questions and answers have a tremendous impact on my own performance and which I had not taken into scope when I started out trading, while I should have. If you decide to put your focus else, or apply a different approach, of course feel free to do so.
its interesting Mark Douglas i believe he categorizes four stages of progression, the last like been in flow like maybe a golfer when everything just clicks im not sure.
Exactly, that’s the reason why I wanted to post it specifically here.
As many others, I have made quite some beginner’s mistakes, expensive ones…
Now these mistakes are hard-wired in my brain, because they hurt me financially and instantly made me humble. But best of course is to not having to make these expensive mistakes by doing regular self-reflection.