Wednesday, 7 July 2010

Simple but not Easy?

The title of the blog today is an often said reference to trading. It really is not true. Truthfully, on reflection, trading is not simple, really. In the past, I've said its simple too but, on reflection, its not until you become CP. Its complicated and we make it even more complicated because we try and use a methodology that was successful in some other endeavour. And that doesn't work.

Trading is different. There are not too many experiences you can rely on that will help you trade.

A trader has to develop a whole new structure to rely on. A trader has to build that structure from below the ground. First, a foundation and then brick by brick, examining each piece before he accepts it and puts it into his structure. He needs to know what he doesn't know. The problem is we don't know what we don't know. I haven't read one book that helps in this regard.

The goal of the trader training I am starting on Saturday is to create a unique trading plan for each attendee and then do a knowledge transfer to give them the information they need to implement the plan. A bunch of attendees and each with a unique different trading plan.

Once there is a trading plan then the trader must SIM trade it until they are CP and can do it in their sleep. They then have to take the next leap and to replicate their SIM success with real money. They need to have focus and discipline, trade well within their financial comfort level and control the gremlins that appear in their heads that try and sabotage their compliance. My 90 day support of each trader will help a lot. In fact, it will be what takes them over the hump, hopefully.

As for me, I'll be over the moon as I hear CP, CP, CP..... How long will it take each person? I don't know as it depends on them. Each of us is responsible for our own actions and inactions. We bring with us a history that is in our heads.

Building that new structure to make us a trader is neither simple or easy but eminently doable by at least 10% of a random sample and hopefully up to 100% of my sample.

I can't wait to start.

Trades today were the result of the buyer showing his hand early. The break above support at 1.30pm London time put me on the right side of the market. By RTH, we were close to yesterday's close, so no Gap trade, and anyway, the market was still full of buying and pullbacks allowed rebuying scaled exits or re-entries if you're short term like I am again.

1 comment:

  1. Many years ago I was lucky enough to play in a Pro-Am golf tournament with the great Raymond Floyd. When asked about the pressures of playing a high-stakes game against other very skilled players, Mr. Floyd said, "It's all about focus. The losers think about the money. The winners think about hitting perfect shots." ... Sounds a lot like trading.