Fri 22 Feb 2008
The Steps to Success (3)
Posted by ray under Generic Success
The trader in this category here has probably been trading for five to seven years. In NLP terms, he ranges from consciously competent to consciously, unconsciously competent. Most of your good trainers fall into the latter category.
At this level, the trader is now or has been producing consistently profitable results. It’s not that his ‘rat brain’ doesn’t from time to time seize control and cause damage to his account; but the effect of the impulse trade (i.e. a trade that breaches his rules) is limited. Rather than causing a blow-up, the impulse trade may cause a loss of one or two percent.
A trader in this category is continually honing his skills. Some of the areas of improvement include:
- Decision-making skills. Here I have found mindmapping and decision tree analysis a great pairing of the right and left-brain. A great resource for mindmaps is (http://mindmapping.typepad.com)
- Self-awareness. I am interested in anything written by Dr. Brett Steenbarger (http://www.brettsteenbarger.com/weblog.htm) and Denise Shull (http://www.traderpsyches.com/trader_coaching_companyfounder.htm). Dr. Steenbarger coaches only institutional traders but has a great blog (http://www.traderfeed.blogspot.com); Denise Shull coaches and runs courses for retail traders. She also produces a free newsletter (http://www.traderpsyches.com/trading_psychology_worthreading.htm).
- Money Management. Little by way of free information. There are some good books. One is: Trading Risk: Enhanced Profitability through Risk Control by Kenneth L. Grant
- Market Structure. This is difficult because there is so much that is not useful. One set of books I did get value from was Jim Kane’s series (http://www.kanetrading.com). I found Jim great deal with - one of the good guys in the industry.
- I am currently studying a course by Alexander from Trade With Pride (http://www.tradewithpride.com). So far, I have completed week one of an eight-week course and I like the content and teaching style. Alexander’s sincerity is very evident and so far I am comfortable with all that he has taught. I also learned something new, an interesting twist to target projection - so all to the good.
The point I am making is we never stop learning about ourselves and about the market. One of the benefits of teaching is it hones my trading skills forcing me to articulate some instinctive trades. I can’t tell you the number of times a question from a student has led to a profitable line of thought, research and validation. Dad taught me the moment we start thinking we can stop learning and improving, that’s the moment we start our decline.
February 23rd, 2008 at 1:07 am
Ray
Although we did get a move outside of the recent congestion, rumors of an imminent bailout plan of the bond insurers (again) spiked the futures markets up by 1% or more within a matter of minutes. This pulls us back into the range we’ve been stuck in for the past couple of weeks, a very choppy market for the week!
Looking back, my intra-day trade on ES was a good discretionary move. Within half an hour of opening, I was triggered to short at 1343.25 with a stop at 1351.75 taking a risk of 8.5pt. Just before midnight singtime, ES touched its day’s low around 1330. I decided to exit at 1331 with a 12.25pt gain.
This allows me to call it a day; this morning, the spike due to the rumour would have left me in the red on ES.
By Monday, we will know if there is any truth in the bailout for bonds!
Then we have to reassess the structure and development of the markets especially on crude and the forex positions I am still holding.
Will have to start monitoring on Sunday evening my local time.
Not easy weekend after all.
February 24th, 2008 at 1:11 am
WEEKEND POT-POURRI
Next weekend ie Mar 1 & 2 will be the traders convention ATIC in Singapore ; please go to:
http://www.theatic.net/2008/index.php?city=sghttp://www.theatic.net/2008/index.php?city=sg
You will recognize a few Speakers including our own mentor.
For readers outside Singapore, you may wish to take a weekend holiday to sunny Spore and to take in the convention.
February 24th, 2008 at 3:49 am
Sounds like a plan, Ana! If only Houston weren’t a hemisphere away…
February 24th, 2008 at 5:27 am
Jeff
You just have to change to :”Singapore Girl, It’s a great way to fly”.
http://www.youtube.com/watch?v=YarRSmdAnqg&feature=related
With the consent of your wife, of course!
February 25th, 2008 at 10:15 am
For the weekend, the Interlude of Music by Dr Brett is timely to assuage our nerves after a prolonged choppy market, at
http://www.traderfeed.blogspot.com/
to which I have added Rhapsody on a theme of Paganini at
http://www.youtube.com/watch?v=90MuPqYtV_k&feature=related
Relax and enjoy.