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Ten-thousand in Education and still not profitable!

  #318 (permalink)

port charlotte, florida
 
Trading Experience: Beginner
Platform: NinjaTrader
Favorite Futures: Oil
 
Posts: 96 since Dec 2011
Thanks: 54 given, 73 received


rogerf View Post
If we're speaking in generalities, this is all pretty good stuff. It was pointed out that not everyone is cut out to be a trader. Passion has a lot to do with it but many are so far behind the required level of patience and discipline that their odds of making it are practically nill...especially without considerable mentoring.

I believe a fair amount of sim trading is manditory. Trading is a skill and no skill is ever mastered without practice. In trading, practicing to hone your mechanical skills in live account trading is insanity. With a good trading system, market knowledge and the mastery of the mechanics, most traders can be taught to do well on practically any day they choose - in simulation. When they switch to trading "live", the wheels fly off. Why?

All the simulation in the world will not replicate true trading stress (emotions). A few traders are able to make the transition from sim to live and do ok. But they are such a small number that we must postulate that, as a general rule, ALL traders will blow up their first account. The psychological stresses will be so great and their defenses so weak that they will be virtually powerless to combat the urge to bend, twist, bust, mangle and break their rules. Everything they know works goes out the window. At the end of the day, after reviewing their "performance", the sickening feeling of despair and disbelief sets in and they hate themselves. But overcoming those mental monsters is another topic.

We can take a simple poll here to find out how many futures.io (formerly BMT) traders made a successful transition and never nuked their first account. If honest, I venture to say "not many". So, if we accept the postulate as overwhelmingly true, then the question is, "How much money do you want to lose?" $2500? $20,000? $100,000? You get to choose. Think of it as your "tuition" in Trading 101 to learn that "cowboying" trades doesn't work and, to succeed, you must settle down and start mastering yourself. If you give in to your emotions and break your rules even one time, you cannot call yourself a disciplined trader. Without total discipline there cannot be lasting success.

It has always puzzled me how traders will invest so much time and money in learning systems, but put virtually nothing into learning themselves.

RogerF:

Excellent post. 100% on target.

THE CHALLENGE

What can we, those who accept what you say, work as a community to help ourselves, to master ourselves?

All the posting, blogging, etc. won't do it. It might help others understand they have to do it but this activity by itself will not move us towards the goal of mastery.

It seems to me that there are aspects of trading that are like dieting. We read what the problem is; we read what the solution is; we buy books; we 'try' the latest 'fad'. And like trading, most dieters fail and for a lot of the same reasons. I believe there are programs like Weight Watchers that help those that have crossed a threshold of commitment. The individual still has to do the work and take responsibility but there is an 'active' support group in place to help.

It also occurs to me that people suffering from addictions like alcoholism benefit greatly from organizations like AA.

Assuming that at least some of you agree with this concept, what can we do to create such a support environment. What we have here in this forum is a great start but it is just a start (for some or most of us). I know I need to do more, a lot more, but I think I would get there quicker if I was able to get support and at least as importantly - give support to others. We help ourselves when we help others.

I have a lot more to add to this but I would like to see if there are some kindred souls to share with first.

Geoff

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