Havent read the thread but.... IMO too many people spend to much time on the internals/psychology than the externals. The importance of self-awareness is important, but not so critical as some suggest. As much knowledge of market truths will always stand you in better position. I think, looking at these threads, that many initially take up speculation for monetary gain. Soon, they realise it isn't so easy, and turn the quest for profit into one of self-discovery. This is because the quest for self-discovery seems a good excuse for continuing to lose money, rather going back to the first harder objective of profit. While many continue to 'find themselves' broke, others focus on the markets activities without much regard for the self. The market is the market, it is not me. just my $2.00 (yes! I want my 1.98 change ) ST
Hey cgb, thanks for that post. Great thoughts there. And yes, I'm pretty much a homebody and fairly antisocial (I spent most of my studio life thus far doing editing...don't need anyone else there in the room and i loved it!) so working from home is great for me. Plus, I'll be moving back to Maine where I'm originally from and its so beautiful there, I'll just hang out on the porch. That book is a great read, btw. I'm almost finished with it. Also, Alexander Elder's newest, Entries and Exits, is looking great so far. I'm only about 20 pages in, but its interviews with 16 traders who do this for a living, or most of their living Thanks again for the posts everyone. I really appreciate it. Chris
Thanks ST. I understand where you're coming from. My questions come from wanting to know about the psychology of the self employed more so than a trader. I've done enough studying of the latter to last a lifetime. Someone who is about to take the leap from working for someone else to working for themselves I think would be a little different. Anyhow, that's my quest. To find out if there is a difference. Seems like if you've got your head in the game and are treating it like a business, it'll reward you like a business.
I've been self employed (both consulting and trading) for years. Here are my thoughts: 1. Self confidence: Biggest issue I suspect you'll face is one of confidence. If you're not confident, you'll not trade well. The only ways to reduce that risk is to have enough funds so that you're not under time pressure to bring in the profits. 2. Being alone: this was one of the biggest issues for me. I've started a few companies and run large teams and (to my surprise) missed having the daily contact. Depending on how you work/think you may actually rely on chatting informally with others more than you realize. ET is a good starting point for making new friends. 3. Eliminate as many irritants as possible: Get good computer systems & software, tell your family that you're not available for lunch (you're actually working!!), be as focused "going to your trading station" as you were going to work. FWIW: I live in CA and bonds open at 5:20. I though I'd trade a few hours in my nighties before getting ready for the day. I found that I did *MUCH* better when I got up at 4:30, showered, dressed etc BEFORE the markets opened. You have to be serious; you're opponents are! Hope this helps
Great stuff Vikana!! Thanks so much That's perfect and exactly the stuff I was looking for. Thanks once again Chris
Pit bull - Marty Schwartz FIASCO - Frank Partnoy Den of Thieves - James Stewart Have a read of these then realize that this industry is unlike any other. Best line from the book pit bull is "show me a great trader and ill show you someone who understands gambling" Make sure you come in with your eyes wide open so when the hammer falls you take it all in......then decide if you want to get up and take another swing.
Chris If you have to ask this then I would find the book: "How to beg my boss to give me my old job back". Sorry to be crude but you ain't ready to trade for a living yet. Add another five years or so and you may start to have a clue. Holmes.
Holmes, you have no idea who I am nor my background, so you have no place to say Im not ready just because I ask for some book recommendations.
The nice thing about going to an office is that you have a buffer (commuting) time before coming home and unloading the stresses of your day. If you're at home all day make sure you can find a place out of the way where you can't be interrupted and also try to find something that can act like this buffer. Make sure you clearly delineate trading (work) and your home life. You can't let the two intrude on each other. When you do well, share it with others. On those days when you get knocked down hard, go for a run or something and tell yourself that shit happens. You need to have the confidence to absorb the fact that you as a trader will often be wrong, usually 50% of the time. Then let those emotions flow away like water off a duck's back. However, try not to be wrong about money management because that is what will make you a succesful long term trader. I'd say the key psychological traits you need to master are a quite confidence that things will go your way and a total lack of emotion combined with a fierce discipline to run profits and cut losses. All this stuff is obvious but so hard to master. I'd also suggest taking up something like meditation or yoga to provide a daily diversion and also for mental and physical health (not knowing what else you do of course...)