StockFetcher Forums · General Discussion · 38 Steps to Becoming a Trader<< >>Post Follow-up
TheRumpledOne
6,362 posts
msg #98893
Ignore TheRumpledOne
2/3/2011 5:56:57 PM

In my inbox today:


38 steps to becoming a trader

They are as follows:

1. We accumulate information - buying books, going to seminars and researching.
2. We begin to trade with our 'new' knowledge.
3. We consistently 'donate' and then realise we may need more knowledge or information.
4. We accumulate more information.
5. We switch the commodities we are currently following.
6. We go back into the market and trade with our 'updated' knowledge.
7. We get 'beat up' again and begin to lose some of our confidence. Fear starts setting in.
8. We start to listen to 'outside news' and to other traders.
9. We go back into the market and continue to 'donate'.
10. We switch commodities again.
11. We search for more information.
12. We go back into the market and start to see a little progress.
13. We get 'over-confident' and the market humbles us.
14. We start to understand that trading successfully is going to take more time and more knowledge than we anticipated.

MOST PEOPLE WILL GIVE UP AT THIS POINT, AS THEY REALISE WORK IS INVOLVED.

15. We get serious and start concentrating on learning a 'real' methodology.
16. We trade our methodology with some success, but realise that something is missing.
17. We begin to understand the need for having rules to apply our methodology.
18. We take a sabbatical from trading to develop and research our trading rules.
19. We start trading again, this time with rules and find some success, but over all we still hesitate when we execute.
20. We add, subtract and modify rules as we see a need to be more proficient with our rules.
21. We feel we are very close to crossing that threshold of successful trading.
22. We start to take responsibility for our trading results as we understand that our success is in us, not the methodology.
23. We continue to trade and become more proficient with our methodology and our rules.
24. As we trade we still have a tendency to violate our rules and our results are still erratic.
25. We know we are close.
26. We go back and research our rules.
27. We build the confidence in our rules and go back into the market and trade.
28. Our trading results are getting better, but we are still hesitating in executing our rules.
29. We now see the importance of following our rules as we see the results of our trades when we don't follow the rules.
30. We begin to see that our lack of success is within us (a lack of discipline in following the rules because of some kind of fear) and we begin to work on knowing ourselves better.
31. We continue to trade and the market teaches us more and more about ourselves.
32. We master our methodology and our trading rules.
33. We begin to consistently make money.
34. We get a little over-confident and the market humbles us.
35. We continue to learn our lessons.
36. We stop thinking and allow our rules to trade for us (trading becomes boring, but successful) and our trading account
continues to grow as we increase our contract size.
37. We are making more money than we ever dreamed possible.
38. We go on with our lives and accomplish many of the goals we had always dreamed of.

Most traders will identify with this list and should be able to place themselves within these steps. Keep in mind that very few people progress through these steps in an orderly fashion. Developing your trading skills is an iterative process. For example, you may reach Step 13., find that although you were making money, your basic premise for trading was flawed (you might have been benefiting from the bull market, rather than your own trading prowess and then have been rudely awakened when the market entered a bear phase) and you may drop back to Step 4. and start 'climbing' the steps again. Having the proper mindset, attitude and psychological makeup becomes increasingly important as you progress through the steps. The focus of the earlier steps is on external issues, i.e. developing proficiency in the mechanics of trading while the focus of the latter steps (particularly from Step 30, on) is on internal issues, i.e. improving ourselves mentally and psychologically, maturing as traders.

miketranz
716 posts
msg #98894
Ignore miketranz
2/3/2011 7:59:23 PM

From my trading desk:Find stocks that move in a predictable manner based on statistical odds,develop a system to trade them,apply money management,execute.Same principle that casinos operate under to clean the pockets of it's patrons..

TheRumpledOne
6,362 posts
msg #98907
Ignore TheRumpledOne
2/4/2011 12:07:24 PM

That sounds like MILKING THE COWS!!

johnpaulca
11,301 posts
msg #98909
Ignore johnpaulca
2/4/2011 12:21:41 PM

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stefonk
33 posts
msg #98924
Ignore stefonk
2/5/2011 10:33:42 AM

TRO,
I am a stats player too. I like your 10% POPS and POPS per week, but some of the columns I don't understand and also when the picks become available, what criteria do you use in picking which ones to trade and when to trade. This will be really helpful to me.

miketranz
716 posts
msg #98929
Ignore miketranz
2/5/2011 2:26:23 PM

Avery,when you milk your cows,is it right off the open,or all day long as long as they cross the buy zone? Thanks,Mike....

TheRumpledOne
6,362 posts
msg #98960
Ignore TheRumpledOne
2/8/2011 3:10:04 PM

stefonk


TRO,
I am a stats player too. I like your 10% POPS and POPS per week, but some of the columns I don't understand and also when the picks become available, what criteria do you use in picking which ones to trade and when to trade. This will be really helpful to me.

===============================================================

I would pick the ones with high average volume. What columns don't you understand? Post your questions in the RUN FOREST, RUN thread.




TheRumpledOne
6,362 posts
msg #98961
Ignore TheRumpledOne
2/8/2011 3:12:38 PM


miketranz

Avery,when you milk your cows,is it right off the open,or all day long as long as they cross the buy zone? Thanks,Mike....

===============================

I FADE THE GAP on the cows that I trade. Only trade in that direction until the gap fills. After that it is OK to trade both directions. But to play it safe, I would tend to trade long above the weekly open and short below the weekly open.

I don't trade stocks all day long... usually only the first 30 - 60 minutes after the open.



miketranz
716 posts
msg #98986
Ignore miketranz
2/9/2011 9:04:09 AM

Thanks for your advise.I only trade the first 30 minutes off the open,that's it.If you know of any high percentage off open trade techniques,I'm all ears.Thanks again,Mike...

mmosier
2 posts
msg #99071
Ignore mmosier
2/13/2011 8:50:26 AM

TRO

It's very nice of you to post so much information to help us all. I realize that you don't have to but you continue to want to help others become better traders. I recently read "Trading in the Zone" because you said it was a must read and learned so much that I can't believe anyone can trade without reading it. I now understand why you post about probabilities and understanding the probability of the trade because in the end that is all we have. Again thank you and keep up the good work.

Michael

StockFetcher Forums · General Discussion · 38 Steps to Becoming a Trader<< >>Post Follow-up

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