The learning cycle for a newbie trader

[SimSpeed]

Originally posted by bobnat
... If you succeed at it, it's yours for the rest of your life. You'll be able to make a living at it for 20-30 years. But you're going to have do it the old-fashioned way....earn it. That takes time.

Nat

Bobnat,

Of literally thousands of posts I've read at Moneytec and elsewhere, your last commentary to Txtrader ranks #1 in my estimation as the most succinct, yet complete and effective address of a truly complex issue that every new wannabe trader faces.

That little gem should be required reading, to be framed in gold leaf and hung on every traders wall before a single dollar is ever allowed to be traded.

Bravo Maestro Bobnat,

[comenow]

Originally posted by txtrader
and I don't mean to be a sa, but where do I go from here? I know I don't know - but I'm willing to learn, but my personality being what it is doesn't allow for your prediction of 2007 - yes, it's a slow process, yes, it's a learning curve, but some of us, as posted, don't necessarily need the 2+ years to realize we don't know, and we have to slow down. But not all of us need 12 - 18 months to learn to do something that will help us in the long run. We learn quickly from our mistakes, and are more than willing (sometimes to our detriment) to listen to "those who know".

I think you are right. To say that everyone needs three years to get to stages 3 and 4 is nonesense. There are typical mistakes that we are told that all beginners make.

1- Not cutting losses short. I have never had any probelms, right from the beginning, to cut my losses short. I have always had a short fuse for trades that go wrong. I always, without fail, bailed out of losing trades and still do.

2- Letting your profits run. This I found more difficult but not serious enough to stop me from making profits. See 3 below as this relates to having enough trading capital.

3- Not sticking to a system. I had problems with this but fixed them quickly by getting better capitalised. I didn't take all the trades that my signals told me to take because I was afraid of losing. So I got more money from family and sold my expensive car, and the courage came with the money. That was the end of that problem.

My point is that, how long it will take you to become a good trader depends entirely on what kind of personality you have as well as your personal circumstances when you start out. I started trading just over 18 months ago, and I find trading pretty boring and routine by and large. This ain't rocket science. Just understand that it is an odds game and provided you find a way of putting the odds in your favour and realise that you know nothing, then trading fx is a deal.

[forex1]

Originally posted by comenow


I have never had any problems, right from the beginning, to cut my losses short.

I think you also mentioned in a previous post that you don't get emotional about your trading - winning or losing. You are very fortunate to have been born with the traits that most traders have to work on for years!

and I find trading pretty boring and routine by and large.

That's how it should be - in the zone! But it doesn't come so easily to most people.

[hilo]

TXTrader,

you had good view on trading reading Bobnat! that s no doubt a good reflection of what this business is about--

also bear in mind that the more and more sophisticated your trading will be the more you will have to deal with, and will be aware of, that markets are not a representative image of what the economy should be but more a true reflection of what society is -- meaning a corrupted version of our soul.

real well-intented traders can go a long way but surely not in big institutions, or they quit after a while!

the markets mirror our behavior as a whole, that s why, and where i am parting from bobnat, technical analysis is lagging and will not lead you towards success -- and day trading is a zero sum game if you don t have the chance to be into this network of institutions...only perveted soul make enough dough at daytrading...so i would advise you to trade considering Macro analysis and long term positioning, of course daytrading is always usefull ! but the way to use it has to come after you have been around.

hope this will help

Hilo

[andrewmooton]

comenow.....you sound a bit like me.

From the beginning of my live trading (about 6 weeks ago) i've never had a problem cutting losses short.

Im finding it more of a problem to let winners run at the moment and to take every trade that my system tells me to.

Im sure ill get braver as time goes on.

[BigBad1070]

What's the name of the book Soul_Trader?

I am trying to shortcut my way to trading heaven by learning from the wizards and using their experience to master the art, reinventing the wheel would be silly, with commitment, patience and practice, practice, practice, I intend to get there.

thanks for the posting.

[nzbryant]

Soultrader

Great thread - thanks. Ignore the flamers.

Comenow - I agree (obviously) that personality has a big effect on learning curve.

My girlfriend asked me: "If that [my refined system] is all you need to do, why doesnt everyone do it?". I replied: "How many people in Melbourne [or whereever you are] come home from work every night and program and test strategies, and read and read and read the old trading masters (like Justin Mamis), night after night, month after month, and refine and execute their trading system(s), because they love it so?". I would say maybe less than 1 in 10,000 do that almost every night, for years.

[terrytuffnut]

Im worried about the amount of money i will need to pack in my suitcase to go on the journey.

Im exactly in phase 2.

Going nuts testing and reading and reading and testing and reading and reading.

Wish me luck people!!!

Hopefully if i get to actually making a profit then i will definatly give alot back to the moneytech community.

Cheers soul