Does having some trading knowledge get in the way?

March 9th, 2010, 02:27 AM

So you've got some trading smarts, some knowledge of technical analysis, you know you won't get played like those newbie investors with their eTrade accounts buying Apple stock. However, were you bearish for most of 2009 while watching the market melt up like so many "smart" traders instead of following the trend? How did that work out for you?

This article has some interesting reasons why we self-proclaimed "pros" do this.

March 9th, 2010, 01:45 PM

Yes and No to the question. Trading is like shooting at a firing range.

My background before trading was with the Justice Dept. I taught a shooting class for two weeks and the majority of my class was former law enforcement. Most had the "I already know it" attitude. I had one member in the class that never shot a gun before. My goal was to make the class unlearn their old habits to learn updated methods. At the end of the class, the best student in class work and at the firing range was the student that never fired a handgun before.

Same with trading in a way. If one has previous trading experience, it can hamper the learning of a new system if they don't let their ego down. When I learn a new system, I enter that environment with a fresh mind and an attitude that will absorb like a sponge and it works.

March 9th, 2010, 02:25 PM

Guys,

we need to give more credit for retail traders with todays technology , book and research
you can make money!

new traders watch news , CNBC and they have very good idea what to do
my lesson in the stock market is trade what you see (futures are a bit diff)

and as long that the market goes up you want to be a buyer and when the market goes down you want to be a seller

and i think the novice traders who bought apple made a lot of money !!!

so lets give them a little credit

ben

March 9th, 2010, 03:27 PM

Interestingly enough, one of the most important requirements many legit prop trading firms require from new recruits is that they have zero previous trading experience.

Does having some trading knowledge get in the way?

Discussion in Psychology and Money Management

Does having some trading knowledge get in the way?