I think many of us have a goal of trading for a living. Most that have tried, quickly learn just how hard this can be. There are many obstacles along the way and it is very easy to get sidetracked. There are many temptations for the trader which include endless offers from software vendors, system sellers, training programs, and chat rooms that takes away from much-needed capital to start trading.
The value of a forum such as this one, is that we traders collectively share our experiences and learn about the pitfalls and obstacles that others have experienced enabling us to avoid the same. Toward that end, here are four things off the top of my head toward getting to the point of trading for a living.
You will not find an effective automated system that will make money long term that is offered for sale. Such a cash machine would be virtually priceless to a hedge fund, so it stands to reason that such a system would not be for sale from a website.
You will have limited success in trying to create your own automated system that will make money long term as described above. Many, many “quants” working for large hedge funds with PhD level skill and the best resources available have limited success to show for their efforts in trying to do this.
Find a mentor that you can learn from who is successfully trading in the instruments and timeframe that you wish to be successful with. This of course, is a challenge as there are many training programs that are offered for sale. Ideally you would network and find someone on a personal basis that you can learn from. Since this isn't always easy, a paid training program may be your only choice. In this situation you need to research very carefully the person providing the training and feedback from the students. Another good reason for participating in forums such as this.
One of the greatest innovations that we now have available to us is simulated trading. This is very different from back testing as it allows you to trade as if it was live with real money. If you think you have an approach that works, trade it is simulated basis for hundreds of completed trades until you know that it will work life with real cash.
This is Bobc from sunny South Africa.
I found the "Big Mike" site while searching for a simplified Al Brooks. His comvoluted writing and haphazard editing is difficult to follow. Every page has to be read 3 times. But the information is pure gold.
I can't use most of the prizes on offer because I trade in South Africa, so I submit the following to try and win an elite membership.
There is a book out there titled "Outliers" by Malcomn Gladwell which makes some interesting statements. Amongst others he claims the closer you are born to the 1st January in any year, the better off you are. Especially sport.
He also says you need to put in 10000 hours to be proficient in that endeavour. That means 8 hours a day for 250 week days for 5 years. To study to become a doctor, that's exactly how many hours you study. Imagine how good you would be if hit golf balls 8 hours a day for 5 years.
So, the same applies to trading. To know what you are doing requires 8 hours a day 250 days a year for 5 years. If you trade part time like me, 3 hours a day 200 days a year, it's going to take you 16 years to become profitable. Check how long you have been trading to see where you stand in this analogy. Nobody said it was easy.
The following 2 users say Thank You to bobc for this post:
Thank you to all who participated! The creativity some of you have shown is quite awesome!
The contest is now over, and the threads closed to new entries. The moderators will be selecting the winners in each category between now and the end of June, and we will announce the winners soon.
Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.
Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.
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