As we start the new year… and as new lurkers appear… the question begs to be asked once again.
IS TRADING FOR YOU? Are you willing to do WHATEVER it takes to succeed? Are you willing to take the time and effort to become a pro?
Many newer traders can easily shrug off many of the subjects I brought up today. It is easy to say, *Well I am just looking to trade part-time. I dont want to be a professional. I just want to make some extra money working about 30 minutes or so a day*…
My message to such aspiring traders is this; Everything I wrote in this article is MORE APPLICABLE TO YOU THAN TO A PRO!!! Here is why.
I am a pro trader. I can afford to dedicate as many hours to my trading as I feel is necessary. I am very organized. I have a network of computers with all the trading tools I believe in. I have a capital base that allows me to trade in a diversified, risk adversed manner. I have years of experience on my side. Experience that allows me to trade in a disciplined and consistent manner… full of confidence and conviction. I have a methodology and a detailed trading plan that has me surviving and thriving in a turbulent business that chews up and spits out prepared and unprepared traders alike at a whim. Day in and day out. I am here.
Now. Everytime a novice trader places his bet in the market, he is up against somebody like ME. A cold, calculating, battle hardenned PRO that has survived wild market conditions and overcome many mistakes, disappointments, etc. Does the novice trader, fresh from reading a course teaching a few patterns and advocating following the markets 10 minutes a day have a realistic chance of competing with a pro? No way!
This is why everything I spoke of is more important to the novice than the professional. A part-time trader CAN succeed… but only if he or she has taken the time to study the markets and develop a set of directional indicators that allows for low risk entries to high probability set-ups. Are you short of funds? That is a liability. You counter this by extra preparation and outting in more TIME. Cannot compete effectively and keep up with the pros? You counter this by cultivating patience and discipline… so that you only trade on YOUR TERMS when the odds are in your favor.
The undercapitalized trader with limited experience must take into account his liabilities… and compensate it with strengths. What are your strengths as a new trader? Limited capital can be turned from weakness to a strength by adopting a fanatical attitude towards capital preservation. This means staying the heck out of the markets until you know what you are doing. Limited experience can be compensated by research and study. Now I am NOT talking about reading a book. I am talking about researching a method, studying historical charts and back-testing, taking meticulous notes, etc.
Above all else… the undercapitalized trader with limited experience needs A TRADING PLAN. A plan that is based on a foundation of knowledge that does a good job of reading price action with an emphasis on taking high probability & low risk trades (preferably in the direction of the trend – which is path of least resistance), preserving capital, etc.
(Half of my contracts are covered for +3 points. Riding the rest down from 1313.50. Market at 1307 at the moment. Market now starting to be oversold and about to turn up again, I guess. No need to get greedy… I’ll try and cover at 1306.50 and call it a day…)
Well, I hope this long article helps somebody. I apologize for rambling on as I did. Sometimes I get in a writing mood and will just write whatever comes to mind. Either way it was a nice distraction while I daytraded today.
No mentor, system, course, book or set of strategies can replace taking charge of your own destiny and being pro-active and responsible.If there is one thing I wish to impart in this article, especially for new traders, then PLANNING AND ORGANIZATION is the key, folks.
And the only way to effectively plan out a solid and robust trading plan… is by obtaining a good foundational knowledge base and using some kind of methodology or system… and then building up from there.
I know it can be done.
I have had a priviledge of training scores of traders. Both full-time and part-time, intraday- and end-of-day traders. Many have succeeded… but I take absolutely no credit for their success. My teaching was a hands on approach that squarely placed the responsibility of success on the individual. It was THEIR hard work that made all the difference. Through my teachings, all I do is point out a few things out along the way.
I cannot think of a better close than this one;
I am responsible for everything positive or negative in my life.
And so are you. This thought form should be thoroughly ingrained into your mind. To be successful in anything you do, you must make the principle of self-responsibility a living reality in your life. No mentor, system, course, book or set of strategies can replace taking charge of your own destiny and being pro-active and responsible.
It is YOUR trading business alone. After all is said and done… it is just you… the markets… the trigger… your mind… and your account statement.
Take care folks!
Tom