Simply put…knowing the basics just isn’t enough – you know that. Especially when you consider that you’ve got money riding on it.
You’ve got to spend more time studying, observing, watching every second, in order to truly get your head wrapped around “how things really work”.
If it’s a particular stock or currency pair you’re interested in then….get it on your screen, not just a couple of times a day but ALL DAY and “really see” how the thing trades. See how it reacts at any number of moving averages, check it out on multiple time frames, draw those horizontal lines of support and resistance, watch for spikes in volume at given times of the trading day.
Throw those “bolinger bands” on it for example, and see what happens when price breaches the lines. Check a simple RSI and see what levels the thing starts to turn on. Brush up on your japanese candlestick knowledge and learn to identify significant formations.
Follow a given stock, currency pair, or any asset for that matter for a FULL WEEK no MONTH! Every single second that you can bear staring at the computer so when you step out onto the field, you take EVERYTHING you possibly can with you. KNOWING you are about to face the toughest team on the planet.
These guys have been playing professionally for YEARS!
Practice your entires, even if just in your head, then check back to see if you’ve improved over the last time.
Study those fundamentals so you’ve got a heads up on what type of price action to expect “before” announcements are made. Take Sundays to “put a plan together” for the following week, then see if things play out as you’d expected. If not – do it again next Sunday.
I can tell you from experience..there is no other way around it. The odd “hot tip here or there” will always be a possibility but to consistently “round those bases” you’ve got to dedicate considerable time and effort. You’ve got to stick with it.
I think you can do it….but the question really is – do “you” think you can do it?
Well enough with the motivational speaking – you know what I’m getting at. If you are here to learn then I suggest you “step it up a bit” and start chewing on some of this in your down time. There is a never ending list of things to study, and the great part is…the market is likely gonna be there forever so – you’ve got time!
I’ll be in the kitchen if you need me.
Yup! Anything with consequence at hand a guy or girl should constantly sharpen their skills in. From about 3 yr old til 18 I was very serious in downhill ski racing. Up at 5 to run and stretch for 45…off to school for half day…run race courses for the afternoon…eat rest…lift weights and work out in the evening…do my school work and go the eff to sleep. Rinse repeat 6 days a week. Was a lot of work but produced great results and the lessons learned from those years have helped me at every stage of my life. Practice practice and only do it if you love it. Otherwise it just feels like a bunch of work and kind of a pain in the ass haha.
Great post Kong – its not always about the actual trade at a particular time. Anyone can catch a wave, but surviving in the open sea is another matter.
I heard a great line on this theme from a completely different arena, which is about experience:
After 1,000 hours practice and study, you qualify as a novice (i.e. 8 hours per day 5 days per week for six months)
After 2,000 hours you qualify as an apprenctice (8 hours per day for a year)
After 5,000 hours you qualify as a tradesman (2.5 years)
After 10,000 hours you might qualify as expert (5 years)
After 20,000 hours a Master (10 years).
This is only if you’re still in the game. So at these rates its a full time job and needs to be treated as such, and anything less is being unprofessional and risky.
Me, I’m just a tradesman still learning this trade.
Hi Kong,
Very good post. Quite appropriate for me now: left my job last week, to go full-time trading. Have about 7500 hours / 12 years behind me as experience, with OK results (but nothing like yours). Kind of curious what results can be achieved when going full-time. So I am very interested in your approach – like your Sunday preparation/routine. I am looking forward in following your posts (have been for a while), and plan to comment more.
Do you know the work of Van Tharp?
Profitminer! Love the handle.
Hey listen…..going full time was the aboslute #1 best thing I ever did ( as insane as it was at the time ) in that…..the timing for me “life wise” could have been better BUT – the minute to minute focus ( as tedious as it can be ) crams a lifetime of learning into one short year.
I can only reccomend that you keep your postions small to start, and hope that you’ve “got a little something tucked away” for a rainy day as…….you’ll run into a couple of those. All said – my first year full time was a touch better than break even so…it’s an investment.
I can’t stress it enough….getting in touch with a given asset in a minute to minute sense is invaluable as each has it’s own unique characteristics ( you already know this ) and as much as a pain in the ass as it can be at times ( the number of hours logged staring at the screen ) I’ve always kept it in the back of my mind that – this is a skill you can take with you forever so…….why not get it figured out!
I know of Van Tharp…..never read but….understand that it’s a little “dated”. Likely great info none the less as you can never stop learning.
Thanks Kong for those words!
I guess I am in the same boat as what your were, what with two teenage children – but yes, we have got some tucked away for a rainy day.
With regards to position sizing – yes, know about that quite well, as most accounts are blown up by disregarding risk (most confuse position size with risk BTW, they are two different things). I would urge you to read Van, as he has some great ideas about risk / money management, and his psychology teachings is spot-on I would say, not dated.
Regards