Just a note about learning to trade.
I’ve known a lot of traders over the last ten years. I have been a fellow student and a fellow trader in many different arenas. I can’t think of one person (including me) who avoided the pitfalls of random trading, random gains and random losses; of thinking they had the perfect system or they had the market completely figured out, only to find themselves devastated one day when their friend, the EUR/USD, (or what have you), has taken you for a fool.
I have watched educators too, (and I won’t name names here) who speak as if they are the chosen ones who have uncovered the secrets of the markets. I have heard comments like these:
“If you’re a smart trader, you won’t have losses.”
“My traders [my students who pay me money] are living the life, trading these wild markets without any problems. We are not afraid of any market conditions, we trade them all, holding onto our winners for thousands of pips.” [And not speaking about our tragic losses, because we have excuses for those.]
“Forex equals Financial Freedom.” ”You don’t even have to tell your friends or neighbors where all your money comes from.” [Says a man who I paid $8,000 for training who, as it turns out, never traded a day in his life).
“I can’t believe you’re only making 10% per month. I expected something on the order of 40-60%” .
“My trading system is working, but it’s only making 30% per month. We think we can make it better….” (Famous last words before you ruin everything you had that was good).
You’ve heard me talk before about random trading. Random trading is trading without a plan, so that all your gains and all your losses are random. You never arrive at a goal, and you never have to account for a loss. Winning 30% is no different than losing 30%, on the endless chasing after something better. My question is… Better than what? It’s random and never reached a point of completion, so trying to improve “it” is a false endeavor. Everything gets changed up so often that there is no distinction of accomplishment. It’s all chasing after something, searching for greener grass in some new non-existent sure-fire cocky-ass system. If the system makes 30%, then stop and look at it, and make sure you understand why it did. Identify the part of your report that can be attributed to “luck”. If your losses were just bad luck, then so were your gains.(If you can improve your luck and make it repeatable, then please disregard, and plan out your next trip to Vegas…) Make sure it’s repeatable, meaning, make sure you can repeat it! (No, I mean every month. I mean, do it again and again and again. Now you have something to talk about.) If you lose 30% and you give yourself a pass, then you haven’t made any progress towards your goal. Wait, did you have a goal?
I’m your blog-friend, which is funny because I’m not a social person. I never had a Facebook, I never sent a single Christmas card (sorry Mom), and I don’t go to my high school reunions. (You could say I’m borderline asocial. Ahhh. That’s sad.) I’m here because I know I’m sharper when I talk to you and you talk to me. I’m not talking about hating yourself when you account for a loss. I’m talking about facing yourself and forcing the good stuff to the top. It’s in there. I have a trading notebook in which I write to myself all day long and I read what I write in an effort to keep myself on track. I have a set trading/money management plan, and I have goals which encourage me to stay on track, stay disciplined, stay motivated, and keep it real. I have a gauge so I know when I’m on track and when I’m not. It’s not random. I do NOT want sensational wins that I cannot repeat. I want to know what I can county on. Don’t you?
I have a friend, a mentor, and a notebook. I literally make reports for myself and evaluate them as if I were evaluating an employee. I have daughters who are counting on me to support them, and I don’t have time to waste. I am my own trader, and I am my own boss. The boss wants a report from the trader, and there are no excuses. I would encourage you to find someone to report to, even if it’s just to yourself, so you can face your trading with honesty and make yourself turn it into something realistic, attainable, repeatable, and calm. I am your trading-friend who genuinely wishes you and me well on all our trades. Time is short, and trading is no different. Make it right today.
Last thing… Rob Booker is the one who told me the greatest words I ever heard, which literally changed my life in every way. It goes like this… “You already have everything you need. You already know everything you need to know. You already know a trading system, and you don’t need to know anything else to be successful implementing your system. You already are complete, not lacking for anything.”
I’m not as good with words as he is, but if you’re still reading, please read this. You already have everything you need to be successful. Sort things out. Get your trading organized. Write a report, honestly evaluate your trading habits, and make a plan that you can stick to. The only thing I know I can promise you is that you already know all the right answers to all the questions you think you have. Don’t give yourself a pass. Give yourself a fair evaluation and then make a plan. You can start with the simplest support/resistance trading system you can find, and put my words to the test. You don’t need anything else except a plan and the discipline to stick to it, through the wins and through the losses.
Have a wonderful day.