So as a newbie trader (relatively) the work is in sorting all the internal obstacles to actually enjoy the process of trading. I’ve posted previously about some negative aspects (fear) which I’m now pleased to report I’ve overcome.
If you’re new to trading and feel like you’re putting your life in the hands of your enemy or you get extremely nervous when in a position then you really need to pay attention to the following.
The bit which isn’t exciting (not so much) is that I’ve beaten this in an extremely boring way… rather than transforming into some sort of warrior trader ninja/samurai 😉 I’ve done the following: –
1. Decreased my trade size. Yes, this is extremely un-sexy but if you’re new to trading and feel under pressure immediately when placing a trade it’s likely to be ’cause you’re risking too much in a single trade. Risk less, decrease your position size and you’ll be able to manage the whole process out WAY better than you would previously.
2. Gotten to a point where I’ve at least have half a clue what I’m doing. This is the bit that takes some time and (IMHO) involves learning from real people as to what to do. When I’ve made some consistent progress I’ll be more than happy to recommend various people and explain what component of my trading approach I learned from where.
For me the main task is now practising trading and really getting my head around using what I’ve been taught. This is setting up to be my mission for 2012. Trading as much as possible given that I work full time. I’m looking at changing back up to 1Hr/4Hr timeframes to do this.
3. Learn patience. Really this is invaluable (and I’m still learning this). Once you understand even a little (as I now do) about how prices move and where professional traders enter positions then you’ll be more than happy to wait for the price to get to where you want it to before getting in.
There is no reason to rush into a trade where you’re likely to lose money or get panicked into bailing out of a trade early. Decide in advance where you want to get in and then wait. If you miss an opportunity to get into a move then wait for a pull-back and then get it in if the reason for the trade is still valid.
Now of course you can go look at my actual trading results and notice that they’re less than stellar. So why should I be dispensing advice? Well, I guess what I’m trying to do with this blog is highlight what is actually really involved in going from not having a clue to having consistent trading success.
Started thinking about trading, opened a small account and blew it up as I was utterly clueless
Signed up for some very over-priced training, this didn’t help, re-committed
Started this blog while still trading and consistently losing money
Got the first bit of proper training, stopped losing money and started really studying
I know how far I’ve come since I started looking at this topic…
Looking back even 3 months I’ve learnt more about what it takes to really succeed at this than I did in the entire 12 months of 2010 and most of 2011 too. Scary huh?! 😉
So I’m now, as I mentioned above, at the practice, practice, practice stage and concentrating on executing good, well thought out, risk managed trades.
It’s not exciting or sexy or like it is in the movies but it’s at least becoming much more fun 😉