The importance of how you learn the business of trading cannot be minimized because of the factors that determine your success or failure. Learning the business of trading is basically no different from learning any other business. Winning means learning major guidelines and concepts that you repeat so often in your own behavior that they become good habits. These good habits then become automatic behavior patterns, which are formed as brain pathways by the rewards you get for trading well and the punishment you receive from trading poorly. When you associate yourself with other traders, try to associate with those who are building their personal net worth, not just talking about it. True success is silent. Try not to do something just because everyone else is doing it. Successful traders are rare. If the crowd is doing it, watch out!
Well said! BTW, there is some interesting work by Michael Covel on this subject. You may want to check it out as soon as possible. In terms of looking at this as a business, the first thing I would ask myself is: ok, do I want an LLC or an LLP? You know, that sort of thing. . . Some people may feel more comfortable with an LLC, others with an LLP. Do I want to assemble a group of traders to trade with me? Do I know enough about poker and/or probabilities, if I go to an interview with a prop firm? Do I know why a prop firm will let someone trade its capital, a seemingly stupid way of doing business? Do I know enough about psychology, about my mental habits? I think these are the questions a trader has to think about, in additional to reading Michael Covel's work.
Very well said HA. I agree with all you added to what I had said. Legal and tax setup is crucial and must be done right. Broker choice, data supplier, trading platform, trading environment--all must be thought out.
VERY well put. Trading is definitely a business and you have to put in the time and really FOCUS and be determined if you want to be successful.
** What level of "in-the-trenches" live trade experience does Mike Covel bring to the table? You might find this surprising, HiddenAgenda because we see you are new here. But Mike has done a number of stealth alias postings in the past, pretty much the same as you have here. Don't get me wrong... Mike's a great journalist. But so is the lady from our local paper who just interviewed me about saving honeybees. She's about as experienced a trader as Covel is. Just wondering exactly what live trading experiences you found of veteran expertise in his work?
No. It is totally and completely different. In business you are dealing with client needs and concrete issues. Often once you find your niche, the more effort you put out, the more money you make--- trading is nothing at all like this. In trading you are dealing with randomness, luck, probabilities, strategy, and market forces outside of your control/knowledge. Not to mention challenging the smartest people on earth, literally-- I doubt if your local business owner competitor can fit into that category,literally or figuratively This is just the start of the differences. Understanding that it is a completely different endeavor in which effort doesn't often correlate with success is the first step to trading success. all the best, surf
Trading is completely different. Whereas in academics or business, the path to success is well defined or the answers already known. With trading, the "answer" is hidden. There is no textbook or teachers manual to thumb through and look up the answer. Trading is akin to searching for a needle in a haystack. There are millions of ways to do it wrong, but only a few ways to do it right !
Surf has himself convinced he can not trade so do not let him convince you all are as much a sorry ass loser as he is. PS: trading is not like learning other professions.....in other professions you learn what works by following others who made it. In trading you first have to unlearn what you originally bring to the table. trading is almost just the opposit of what surf said............ PM him and ask him if he has any ORIGINAL copies of PTJones tapes left. :eek:
You're talking Mentor. Few traders ever get that. Journals, with live calls, can work. Next best thing. I did neither! :eek: :eek: