February 16, 2011

Is Learning to Trade Something You Are Born With?

By Planet Wealth

pThere is a common misconception that some individuals are born to trade. In my experience , after working alongside scores of traders, I have never met a trader who could naturally trade without any training . I will wholeheartedly admit that some traders are more adept than others to grasp the basic principles of trading , and I would also admit that certain traders have a hard time picking up on even the rudimentary principles of trading. After all, we are all endowed with differing sets of skills , and we are not all set up to be futures traders.br /br /This contrasts sharply with some different fields of endeavor . For example, I have a friend who is a gifted golfer. For as long as I have known him he could whack a golf ball long and straight . He can shoot even par no matter what the weather conditions. He can even manage par when he is intoxicated , which in itself is a miracle. For reasons I dont know , this relationship does not hold right in futures trading . Perhaps it is because of the natural illogic of trading systems , or perhaps trading does not necessarily lend itself to natural ability. I dont have the answer to this question .br /br /I am an eternal optimist, and have found that most individuals who are willing to place a certain amount of book work, spend time and practice, and dogged determination can can buy the skills to trade very profitably . I must add one caveat, but: I have met several people, a very small percentage, who simply were unable to trade, and it became noticeable very early in their training that trading just didnt suit them . Again, this is a very small group of individuals .br /br /It is my belief that successful traders are trained, seasoned and combine years of experience before they become truly leading floor traders. Unfortunately, trading on Wall Street is a very stressful field of endeavor and most traders leave the trading game before they realize their potential. Most major investment bank trading rooms are filled with youthful traders, with a seasoned veteran overseeing operations of the trading room. I am 52 years ancient, and my limit for trading is about five hours. My mind tires and my concentration wanes , but the trades I make are typically well thought out and years of experience keep me out of the lousy trades and help me to identify the excellent trades.br /br /And that is the rub. As a new trader you are going to do some poorly thought out trades, its inevitable and it is okay, if you learn from your miscues . On a given day, there are many set-ups that look excellent , but there may be a factor that precludes that trade from being profitable . Your ability to discern that single negative factor is what will make you a competant trader.br /br /I want to make one extremely vital point, though. You dont have to be a fantastic a href=http://www.learn-to-trade-and-invest.com target=_blankday trader/a to make money in the market. If you have learned a excellent system, have the proper self-discipline, and can do your system with a high degree of accuracy…you can be very profitable in your trading business . You dont have to be the best , just excellent. On the other hand, if you stay with trading for a long while you have the potential to be fantastic. The downside to this situation is humorous, though. You will be the only one who knows you are fantastic. Unless you are trading for a large investment bank, you will have to be content with knowing you are a fantastic trader and leave it at that. But who really cares? As long as your futures trading account reflects the brilliant results you are enjoying, isnt that enough?br /br /In summary, learn your trading methodology inside and out. In my trading, I also learn a number of alternative systems inside out. Practice the self-discipline required to make your trading effective . Avoid entering trades based on emotion. Further, always strive to improve your trading, keep a journal of your trades, and review the trades that did not work out so you dont repeat them. And most importantly, be persistent and dogged in your approach to trading, strive for perfection, even though perfection is nearly impossible. We all have the potential to be fantastic a a href=http://www.learn-to-trade-and-invest.com target=_blankday trader/a, but most dont reach deep enough to realize their potential. Be one of the few that reaches his potential./p
pI am still a full time e-mini a href=http://www.learn-to-trade-and-invest.com target=_blankday trader/a and educator and delight in the profession as much as ever./p

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