How long do I need to be ready to trade for an income?

(This is an mini article series to encourage traders to learn how to be a better trader written by Eric Lye)

Below is an extract of the email I sent to our group of traders.

Hi All,

You have asked me this question before.  How long do I need to be ready to trade for an income?  I have been observing many of our traders and in constant communication with some.  And I think I would like to emphasize again.  The answer is - hours.

You need many hours to train yourself.  And hours do not include trading time or time monitoring the market.  Hours are clocked when you are spending time to learn and train yourself.   There are many aspects of learning and training.  Both technical and non-technical.


Technical areas include:

1. Chart analysis
To understand where the market is, and where it is going to go next.

Key concepts:

• SR
• market conditions (consolidating, trending)
• wave theories (e.g Elliot, harmonics, etc)
• MTF
  

2. Setup Identification
To know what kind of setup to trade in order to get into the market and how to set the right risks and rewards expectations.  Back in your days of indicators trading, you are probably talking about crosses or change of indicator colors.  Whatever it is, the identification of the setup is to tell you when is probably the best time to get into the market with exact known risk.

You'll need...

• to understand the concept of reconciliation of MTF
• to identify Reversals and Continuation patterns
  
• to make use of SR, TL, channels

3. Triggering
To know what price to get into an entry (entries) using what size(s)

• Test and Re-Test
• Lower Time Frame (LTF)
• Pullbacks or Re-tests

4. Trade Management
Understand what is confirmation and invalidation. 

• Know when to pull the plug when trade is not going the right way
• Know when to ride the trade
• Know when to add positions
• Know when to reduce positions
• Know when to move your stops
  

5. Other Tools
There are many tools out there to help

Examples:

• Fibo retracements and extension
• Pivot Points
• and many more....

Non-Technical


1. Risk Management
To know exactly what sorts of risks you would take and not take.  Make plans that would allow you to last long enough at current stage before you move on to the next stage.


2. Self Management
To know yourself and understand how do you make decisions to put on a trade, close off a trade completely or partially, increase risk, reduce risk, or not trade at all.  You have to know if you are in the ebb or flow of your trading.


3. Money and Growth Management
All businesses need plans to grow, sustain and evolve.  And this is probably one of the biggest area where you can't stop doing and exploring.


The list above is not exhaustive.  And according to experts, you need at least 5000 hours of training to be good with any crafts and I totally agree with it. 

Since last year Feb when I started to realize I was on the wrong path while still with XXX.  I have spent at least 400 days, minimum 12 hours a day, spending time to unlearn, relearn and train myself.  And this is real.  So, before you make any plans.  Ask yourself, are you ready?