I just read an article about this and like you to read it too. This articles talks about the following
•Treat your trading like a business…not a casino or hobby.
•Use position sizing to manage your risk and reward effectively.
•Over-trading; a real problem for most traders and how to stop it.
•Learn a handful of simplistic price action based strategies and master them.
•Have a trading plan.
•Use printed affirmations to keep your mindset on track, put them on your office wall or computer monitor.
•Trade what you see and believe in, don’t doubt yourself or become a “hindsight trader”; meaning do not enter a trade due to regret or for no logical reason.
You can read the entire article here.
Cheers,
Mike PS
Friday, September 24, 2010
Thursday, September 23, 2010
38 STEPS TO BECOMING A TRADER BY ANONYMOUS TRADER
38 STEPS TO BECOMING A TRADER BY ANONYMOUS TRADER
[As published in Commodity Futures Trading Club News and in Traders
Organization’s “Real Success Day Trading Course”]
1. We accumulate information—buying books, going to seminars, and researching.
2. We begin to trade with our “new” knowledge.
3. We consistently “donate” and then realize that we may need more knowledge or information.
4. We accumulate more information.
5. We switch the commodities we are currently following.
6. We go back into the market and trade with our “updated” knowledge.
7. We get “beat up” again and begin to lose some of our confidence. Fear starts setting in.
8. We start to listen to “outside news” and to other traders.
9. We go back into the market and continue to “donate.”
10. We switch commodities again.
11. We search for more information.
12. We go back into the market and start to see a little progress.
13. We get “overconfident,” and the market humbles us.
14. We start to understand that trading successfully is going to take more time and more knowledge than we anticipated. Most people will give up at this point, as they realize work is involved.
15. We get serious and start concentrating on learning a “real” methodology.
16. We trade our methodology with some success but realize that something is missing.
17. We begin to understand the need for having rules to apply our methodology.
18. We take a sabbatical from trading to develop and research our trading rules.
19. We start trading again, this time with rules, and find some success, but overall, we still hesitate when we execute.
20. We add, subtract, and modify rules as we see a need to be more proficient with our rules.
21. We feel we are very close to crossing that threshold of successful trading.
22. We start to take responsibility for our trading results as we understand that our success is in us, not the methodology.
23. We continue to trade and become more proficient with our methodology and our rules.
24. As we trade, we still have a tendency to violate our rules, and our results are still erratic.
25. We know we are close.
26. We go back and research our rules.
27. We build the confidence in our rules and go back into the market and trade.
28. Our trading results are getting better, but we are still hesitating in executing our rules.
29. We now see the importance of following our rules as we see the results of our trades when we don’t follow the rules.
30. We begin to see that our lack of success is within us (a lack of discipline in following the rules because of some kind of fear), and we begin to work on knowing ourselves better.
31. We continue to trade, and the market teaches us more and more about ourselves.
32. We master our methodology and our trading rules.
33. We begin to consistently make money.
34. We get a little overconfident, and the market humbles us.
35. We continue to learn our lessons.
36. We stop thinking and allow our rules to trade for us (trading becomes boring but successful), and our trading account continues to grow as we increase our contract size.
37. We are making more money than we ever dreamed possible.
38. We go on with our lives and accomplish many of the goals we had always dreamed of.
Cheers,
Mike PS
[As published in Commodity Futures Trading Club News and in Traders
Organization’s “Real Success Day Trading Course”]
1. We accumulate information—buying books, going to seminars, and researching.
2. We begin to trade with our “new” knowledge.
3. We consistently “donate” and then realize that we may need more knowledge or information.
4. We accumulate more information.
5. We switch the commodities we are currently following.
6. We go back into the market and trade with our “updated” knowledge.
7. We get “beat up” again and begin to lose some of our confidence. Fear starts setting in.
8. We start to listen to “outside news” and to other traders.
9. We go back into the market and continue to “donate.”
10. We switch commodities again.
11. We search for more information.
12. We go back into the market and start to see a little progress.
13. We get “overconfident,” and the market humbles us.
14. We start to understand that trading successfully is going to take more time and more knowledge than we anticipated. Most people will give up at this point, as they realize work is involved.
15. We get serious and start concentrating on learning a “real” methodology.
16. We trade our methodology with some success but realize that something is missing.
17. We begin to understand the need for having rules to apply our methodology.
18. We take a sabbatical from trading to develop and research our trading rules.
19. We start trading again, this time with rules, and find some success, but overall, we still hesitate when we execute.
20. We add, subtract, and modify rules as we see a need to be more proficient with our rules.
21. We feel we are very close to crossing that threshold of successful trading.
22. We start to take responsibility for our trading results as we understand that our success is in us, not the methodology.
23. We continue to trade and become more proficient with our methodology and our rules.
24. As we trade, we still have a tendency to violate our rules, and our results are still erratic.
25. We know we are close.
26. We go back and research our rules.
27. We build the confidence in our rules and go back into the market and trade.
28. Our trading results are getting better, but we are still hesitating in executing our rules.
29. We now see the importance of following our rules as we see the results of our trades when we don’t follow the rules.
30. We begin to see that our lack of success is within us (a lack of discipline in following the rules because of some kind of fear), and we begin to work on knowing ourselves better.
31. We continue to trade, and the market teaches us more and more about ourselves.
32. We master our methodology and our trading rules.
33. We begin to consistently make money.
34. We get a little overconfident, and the market humbles us.
35. We continue to learn our lessons.
36. We stop thinking and allow our rules to trade for us (trading becomes boring but successful), and our trading account continues to grow as we increase our contract size.
37. We are making more money than we ever dreamed possible.
38. We go on with our lives and accomplish many of the goals we had always dreamed of.
Cheers,
Mike PS
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