Is Trading What You Think?

I have not been posting for quite a while.  Making some adjustments in my life and spending some time to think about trading.  Of course, I am still trading constantly. :-)  Anyway, some thoughts I have here that I posted to my private group of friends...


I have been thinking hard these days, why there are people who can make it in trading, and those that can't.  Is there a secret formula? 

My conclusion is still hard work.

Method:

You can trade the simplest method all you want.  It would work.  However, the issue is not (at least not so much) about the method, it is about how you manage yourself as a trader, manage your risks and money, and make proper decisions. 


You need to find your method(s) or system(s) that suits your temperament, your availability of time, your capital, your financial objectives for trading, your way of thinking, and something that you could manage well in terms of time and effort.

Money:

No matter how you want to trade, get into the market, get out of the market, you need to have a clear idea of how you want to manage your risks and money.  Or rather, how you make use of your money to earn more money.  This department requires you to spend time to constantly review it and put your system(s) to test.  For those that came from T3B or any other schools, this department is vaguely touched on, so do not under estimate the amount of time required.  Spend a lot, a lot, a lot of time and efforts.

Mind:

As a trader, you need to know yourself very well.  How you make good decisions and how you make bad decisions.  In fact, many traders make stupid and illogical decisions.  You need to train yourself such that it only boils down to only good ones and bad ones. Journalizing is one of the best way to know yourself, what affects you and how to improve yourself.

Holy Grail:

There is no holy grail.  I believe all would agree on this but many (including people in this group) are still chasing it without knowing.  Get someone to sit down with you, tell them about your plans in detail.  If you realize that you cannot do it, then it is clear that you might be heading no where in your trading journey.  And my advise is, it is time to think about it.  

Time:

Let's assume all traders would need 10,000 hours to train themselves is true.  If you only use 1 hour to train yourself every day, you would need 27 years to achieve success in trading.  If you can put in 10 hours, then 2.7 years is what it takes.  And I can tell you this 10,000 hours is necessary, and I have clocked it.

And the hours you spent must have purposes and provide training for yourself.  Sitting in front of the laptop and monitor market does not count, or discount 90% off the hours.

Think about it.  Work on it.