Monday, 12 July 2010

Guest Blogger Kevin

 Hi from Kiki,
 At 7.43pm London time,El is still in full training mode.  He has asked the webinar participants to guest blog and I am posting the first one tonight.  Thanks again Kevin!

You've proven your system, back tested it thoroughly and using context to guide you can make virtual money consistently in SIM trading.  Next you hit the market with real money - somehow you're unable to move to consistent profitability.  Your number one challenge is? ... You!  Somehow your mind keeps sabotaging your well thought out, objective trading plans.

I'm by no means new to the trading game but by no means a successful CP trader either, however, I've travelled far enough to have picked up every possible piece of information out there over the last four years; systems, books, courses, etc. only to throw most of it away and be left with what I think are the most useful and best bits to help me on my trading journey to CP.  What I've discovered is there is in fact very little required to become successful, most of what's out there is just noise.

With this in mind, if I had to choose to take just one trading book with me on my trading journey it would have to be Trading in the Zone by Mark Douglas.  I've read many books on trading, I have over 30 books on the shelf behind me and no book sums up the essence of trading success better.  If you haven't read Trading in the Zone and you're serious about trading for a living then do yourself a huge favour and read this book now, don't delay, find a copy now and read it before you get going.  

I have incorporated many of the core concepts and beliefs about the market discussed in the book into my business plan. For example, I particularly like the "Five Fundamental Truths" of the market and I have pinned this list above my computer screen to remind me at all times:-

The Five Fundamental Truths of trading, with a Probability based mindset.  You have to believe in these without any doubt because they are true.
  1. Anything can happen.
  2. You don't need to Know what is going to happen next in order to make money.
  3. There is a Random Distribution between wins and losses for any given set of variables that define an edge.
  4. An Edge is nothing more than an indication of a higher probability of one thing happening over another.
  5. Every moment in the market is Unique.
Lastly, amongst many other things, I have added the following to my trading plan to remind that anything can happen in the market:-
·         I am rigid in following my trading rules and plans, this keeps me objective and my psyche happy, however,  I am flexible in my expectations, I adapt to change quickly, keeping in flow with market opportunities.

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