I'm starting to realize lately that the times I am at the top of my trading game are the times when I am enjoying the process of trading most and stressed about it least; in otherwords, I just showup and take the trades that seem obvious and make money. As I progress as a trader, these days occur more frequently and I am able to transition into the psychological state in which I trade very well more quickly. I do not put effort into my actions, though - I just fully enjoy the process. When the market is closed, I go over the time and sales of my trades and see why I got in and what information the market made available to me that I did not exploit, or how my emotions got the best of me. The review process, however, is not tedious, does not require effort, and is something I enjoy - I genuinely want to know why I made a mistake and what I can learn from that mistake to prevent it from recurring in the future. Trading itself is extremely enjoyable, especially when I see something in the market that others don't and am proven right. When I lose, it's annoying and unsatisfactory, yet as long as I learn something from my losses, I feel it is worth it and do not get too bothered. Even at the beginning of my career, not very long ago, I wasn't "busting my ass" or putting in ridiculous effort into devising a system; I simply watched stocks trade every day for 6.5 hours and studied how I reacted to that. Patterns made themselves obvious to me, and my natural desire to know about them allowed me to dig deeply enough to find methods of being consistent. The most work I did was in regards to keeping myself from self-destruction by trading with emotions, but that mostly came from the experience of getting burned and the confidence of seeing how well I can do when I trade rationally. I'm writing this because I feel like I uncovered the "holy grail" of trading - that trading is effortless. The learning curve can be steep, but once you get it, you just show up and enjoy the process and accept the ups and downs and flow of the market. What do other more experienced and more profitable traders think? Am I delusional and naive, or is the process of trading for a living as beautiful as I feel it to be?
Will well done you are in the place many of the Guru authors talk about a place where Greed and fear do not exist (quite so much) one thing that may be interesting (not for you) is if you run into a bad patch and how you deal with it. But maybe you have the gift if you do I was very lucky to be a broker for a great trader while working in London the guy had over 2 billion under management and traded it discretionary the guy put on massive positions not just through me as I wasnt his only broker. In the 10 years I knew him he had maybe 3 neg months. I asked how on earth he always seemed able to manage to make profit and he couldnt really explain it he just loved trading THE GAME. Actually got through Cambridge by betting on the horses. So dont listen to some people on here who say you will get your comeuppance sooner or later because I hate to shatter some illusions but some dont
You are feeling what I also felt as well. When I first began, I was too "excitement-driven." Even though I tried to temper my emotions, I was still being too cavalier and careless. Result? Overtrading and inconsistencies. As many have mentioned, once you "get it," trading should be effortless and even boring to a degree. This is my job, and I treat as one now. I expect to make money every single trade day, and I do that over 95% of the time now. No more big drawdowns. Smooth equity curve. Occasional big gain days. The key is to develop a consistent trading method where you can make money effortlessly first. Once you do that, then you can afford to take bigger chance and swing for the fences every now and then.
I think you will find that most things are what you think they are, what you feel them to be. Very good post. "Simply watching stocks trade everyday for 6.5 hours" is how I would suggest people learn. It's how I got started. In fact, it's what I still do today....I watch the markets all day (a little longer than 6.5 hours because I trade oil, gold, and notes). It's what I love to do. I don't get bored, I don't need "time off". It's a great game that I feel privileged to take part in every day. Just thought I would mention.....I like to think of it as "making a fortune", as opposed to "trading for a living". Never cared for the latter. OldTrader