Yes, he's a great author. Have you read anything else on our recomended reading list at http://www.puretick.com/reading.html Cajun
Nice thread, I too have probably seemed a bit harsh when I have suggested that it might take as long and require as much hard work to become a wealthy and consistent trader as it would take to become a carpenter or electrician... For me, I was profitable pretty quickly, after maybe 6 months (probably not a good thing, actually), had two decent years, then three more flat-down ones while I worked hard, studied, and tried to figure out what I was really supposed to be doing. Then it got profitable again (marginally at first) and has been improving since. I guess that is about 5 or 6 years to get consistently profitable. I also have a PhD, that took me 6 years as well. I've been trading full time for about 11 years now, and I am JUST beginning to become really confident in my ability to make money across markets and time and events. I measure that by the smoothness of my equity curve, not just bottom line, as anybody can swing for the fences enough times and hit a home run now and then. And strike out a lot too. But I want to be around in 10 more years too, and have some idea of how much regular income I can count on, so I'll take consistent singles and walks. But it's the guys who have been around 20 or 30 or 40 years and are still making money that I really respect. All of them that I know have had their bad years over time, but never stopped learning from their mistakes. I spent enough time on the floor to get to know a few, and without exception, when I asked what I should/could be doing to get better, they talked a lot more about how little they knew and how often they had been humbled by the markets, than about their new foolproof wonder-system. What they all had was a gut full of experience that they trusted implicitly, and an absolute aversion to risk and loss. I'm still working on it, but it does get easier with time. Jessie
Great post, I would say it's closer to 5-7 years... if you can last. I tell people to have at least 60 months worth of savings or a spouse with a great job!
Alas. I tell people this all the time but they do not listen. Maybe show them some statements from a newbie.
The funniest thing is new traders or losing ones keep trying to find the ultimate indicator. If you want success at trading technically I will give them to you right now! You must have enough capital to trade properly. It should be 50 G's atleast, unless if your trading futures you can get by with 20 G's if your sloppy or a newbie. (this is an average basis so don't criticize) Indicators other than price and volume are complete BULLSHIT!!! (excluding the EPREM on futs) Know what sectors are in favor and what stocks are the best of bread (sorry about the Cramer slang, but its true) in that sector are. HINT: Look at daily/weekly charts the night before day trading. Not all stocks move in tandem with sectors for the shear fact of news, valuations, earnings an so on. (I know this contradicts my previous statement , but if you get it you know what I mean) Just look at NOVC today and the $BTK (A.K.A Biotech sector) If your a technical trader quit thinking and follow what technicals tell you! It's called technical for a reason. Its based on numbers and if the numbers don't fit the scenario then you shouldn't be a part of it. Do not input your mental thinking to try and modify the facts of the chart. We are visual traders and trade on price, so don't be a hero and try to change what the herd is trading. WHAT YOU THINK IS IRRELEVANT! Unless your trading huge shares (10,000 Plus) Look at Daily charts and find ones that have room to run. Preferable ones that are near their 52 week high or low. If you don't know how to Identify them Then I suggest you look at 10,000 charts and and try to grasp the visual concept. If that doesn't cut it for you try reading books from the following people. Jonh Murphy, Steve Nison, Joe Ross. Last, but most important!!! There will always be a buyer and a seller so don't let Intra-bar price action scare you. Many times the MM (Market maker) is trying to steal your shares by scaring you while your look at your P&L screen. BIG TIP: Don't look at your P/L screen. Focus on the close of the bar!!! Have targets and take atleast half of your profit at that target that way your golden and can't lose. Remember you will seldom get out at the top or bottom. The objective is to a part of the glory not all of it! No one get all of the glory! If this post is a blur and you don't get it try reading this book for a start on your way to success. http://www.amazon.com/Electronic-Tr...687315?ie=UTF8&s=books&qid=1180575860&sr=1-21 I don't know him personally but it should get you newbies or continuous losers straight! Just remember this is not your market its everyone's market. If you want further guidance PM me and I will do my best to respond in a timely manner.
Thanks, another nice post. If new traders would realize that (among MANY MANY other things): There is no "THEM" that screws you in any fashion; Not your broker, not big, secret cabals, not the floor picking your stops, not market manipulators. Nobody. If you lose money, it's because YOU were wrong or didn't understand how the market you were trading works. Until you accept that, you will never learn from your mistakes. There is no secret system waiting to be discovered that will make you rich. All of the really good traders I know will be happy to tell you exactly what they do, but not one person in 1000 will have the discipline to keep doing it even through the first really bad drawdown. There are no magic indicators. A bigger computer and a platform that is 2 milliseconds faster from home doesn't matter, and isn't what is going to make you profitable (or keep you from it). Commission free forex (or other "free") trading isn't really free. Life involves hard work. Being a carpenter is hard work, and it takes a number of years of both study and practice to become competent at it, longer still to become good. Being a sucessful trader is hard work, and it takes a number of years of both study and practice to become competent at it, longer still to become good. You rarely know how little you really know until after the fact. If anyone tells you that any of this just isn't the case, ask them how many years they have actually made a good and consistent living solely from their trading. If it's more than 10, you should listen to what they have to say, and please let me know what it was as well. Good trading! Jessie
What I struggle with is being able to remain calm & in control. I am not a pro trader, it forms a secondary income for me. I have no problem trading small size, but whenever I tried increasing size and when position went against me it all started to go totally wrong. I think the main problem in my case is committing too much capital to 1 trade, as when I reduce it back to acceptable level I start controlling a trade a lot better, sticking with initial stop level/letting it run longer, which is important IMO.
That was one of my biggest problems. I just expected too much too quickly, and began to scale too fast. My own trading mentor at the CBOT kept about a $3 million dollar trading account, and rarely traded 100 lots. That translates to a 3 lot for a $100,000 account. He was the 4th generation of his family to make a very good living trading. I am somewhat more aggressive than that (of necessity) but when I reduced the rate of my scaling up, my equity curve smoothed dramatically, I was again able to sleep well, and ultimately the end result wasn't all that different. I just finally realized that the market would determine how long it took for me to build my account, and nothing I could do to force it would really make a difference. Some people are better traders and don't have that experience I suppose, but for me, slowing down helped a lot. Good trading! Jessie