A Good Trader Is Not Born That Way
Saturday, May 31, 2008

Our Analysis Team have traded International Commodities all over the world; Russia, Asia, Europe, Middle East. They have International Bank and Bond Market experience, have a strong understanding of Global Economics and a good knowledge of what moves the Markets. All that aside there was a day, a long time ago, that they knew nothing about Trading. Here are their comments on what helps creates a consistent Trader:

• A good Trader was not born that way; a good Trader is only ever somebody that has been taught well. A good Trader has been willing to expand their thought process, and to willingly move outside of their own comfort zone
• Most Traders expect an instant reward, which is something that is completely unrealistic. Positive results will not just come because a Trader expended energy, the Markets do not really care how much time and effort is put in. There is no ‘Time=Reward ‘ equation in any trading Market
• Work Smart, NOT Hard. Concentrating on a Trading Plan and learning what has already proven to be reliable will not always guarantee results (see above note Time=Reward). It will however ensure that a Trader stacks the odds of success in their favor. Create a way to approach the Market each day that remains constant
• Knowledge is NOT Power, the proper use of Knowledge is Power. Get focused on the system at hand, learn things one at a time and trust in common sense when decision making
• Research the Euro when trading the Forex, it is the largest $ denominated trading Pair and therefore will serve as a guide to overall $ strength or weakness. Do not trade Long the $ when the Major Pairs are running Short the $
• Do not expect instant results, but DO expect a feeling of calm, security and clarity in what you are doing each day once you have a Plan to follow, and a path to walk
• Do not be a SNIOP (Susceptible to the Negative Influence Of Other People). Most Plans will work out given time if they are well prepared and executed, all well thought out systems tend to
• Over 25 Years of Commodity Trading experience teaches people things; Profits & Losses are an equal part of Daily Trading Life, do not let a Loss discourage you, they happen to the best Traders more than most realize. Successful Traders look at results over the Quarter and Year; looking at Weekly and especially Daily, in-depth, analysis can be discouraging. Always understand the losses, but do not dwell on them, instead make the adjustment, learn from it and move on

Common sense is key, if it does not look right, or feel right, it probably is not right. Trust your instincts and look for the reasons not to take a potential trade. If there is any doubt, stay out.

Surround yourself with like minded people, those who exude confidence and stick to basic common sense reasoning that you can easily understand.

Be aware of Trumpet Blowers, those who inform because they can't perform. Accept that Trumpet Blowing is not to be encouraged.

To Learn, Read; To Share, Write; To Master, Teach.

TheLFB.com

 

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