Glad you got better - I had a friend with a brain injury and it's a long road. The key with any skill is repetition. Someone new to trading that tries to trade on gut isn't repeating anything. Therefore, they won't develop any skill. With any skill, as you improve more of it becomes automatic. Trading is no different. The premise of this session was to help people draw a line in the sand between things in trading that should remain fixed and things that can be changed with discretion, along with how to build the discretionary skills. The parts on 'how we learn' were there to reinforce the skills development techniques I see in really good prop traders - the guys who made it big. Not the things they do now, but the things they did to get where they are now.
It is a problem. There is a lot to learn to be successful. Yet there are only 2 directions. At first, you are better off not knowing what you don't know. As I said in the session, interns at prop firms that I know start with a very limited perspective, which expands over time. Walk before you run. So yes, market state seems like a lot to bite off at first. But you don't get to trade 100's or 1000's of lots without a lot more skill than a 3 lot intern that's taking his first steps off sim.
It is breaking the rules or known a deviant market behavior that is the issue or risk. Like kids breaking the law. 1. Peer Pressure, everybody is breaking the law. 2. Greed. 3. Breaking the law and rules is 'fun' and increases risk.
Some people can never stop. I've had meetings with people on a weekly basis and their only task was to follow a set or rules with no trades outside those rules. For some people it's 3 months. It's incredible.
Sure - basically it's how it's trading, how active it is, and to an extent, what's driving it. - For a period last year, we were getting big overnight moves in indices and then terrible low range days in the day session. It was a pattern that emerged and then disappeared. - It's knowing what time of day your market is most active (or time of year) - It's knowing that the employment numbers can create an initial flurry and then an all day move - It's knowing that on a Friday, after Tue, Wed, Thu all being inside days - it's probably going to be pretty slow - It's about knowing that when a market moves up and then down in a nice move but then sits between the two churning - opportunity is low - It's knowing what one-off announcements and press briefings there will be on a day and treading carefully around them - And it's a lot of being able to observe your key markets and know if they are dead slow, lively or crazy volatile Basic things so you are aware of what might impact your market and then see if it is playing out. Stuff that allows you to decide - if you should quit after 3 losers 'cause there's no follow-through - if it's just a regular day with good sweeps up and down - more technical - whether volatility is up and stops need to be wider - same setups, played differently - whether you are just going to have to 'pick up your balls' and scale into a news-driven potentially big move Have as many states as you want as long as you can recognize them effortlessly. I still can't remember the Market Profile Theory open types. Have your own. Call them Albert, Marie and Nikola if it helps you recognize them
Thank you Peter Davies, Thank you for explaining to me. I understand what you mean. Not as detailed as you but after trading crude oil for 3 years everyday, I kinda see what you mean.
Peter, Do your newbie or intern start with 1 or 3 lots? I am trading 1 lot, and it can be challenging.
Thanks. Survived it which a ton of gratitude to the medical people and team of doctors. Came away with a girlfriend (nurse), private psycho therapist, new friend that's an ex-institutional trader from N.Y. and an extreme appreciation of medical insurance. Fully recovered now...back to extreme winter camping/hiking, rowing with new grey hair. Didn't have grey hair prior to the coma...started getting it within days after the coma plus a loss sense of smell (took about 2 years for the taste to return...not there yet for the smell). The mind is an incredible thing...repetition builds new proteins at the synapses of your neurons and strengthens the connections between the neurons. http://gretchenschmelzer.com/blog-1...ing-and-memory-the-neuroscience-of-repetition wrbtrader
Yeah, these trades are done OTC and I'm extremely disappointed that you, living in the UK, where London is the world center of such trades have no idea about how Air-France-KLM is trading their hedges. It does not show up at all on the CL contract. I'm sorry to say, but you are a bullshitter.