Trading Definitions

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Trading Is a Different Profession
- He says in other professions, you learn theory and apply and it works most of the time ( carpeting , engineer ) , but it may not work 50% of the time in Trading ..

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success formula looks something like: Quality Input + Hard Work + Discipline + Some Originality = Success in trading -- or any other business


If you want anything to actually change or to move ahead in your life you actually have to do it yourself, you can´t sit there and wait for somebody or talk about what you might want, you know, you should actually keep dreams and desires inside and let them burn a little bit, and then they might come true'
View quotes by Russell Crowe

http://www.quotes.ubr.com/quotes-alphabetical/y-quotes/yourself-quotes.aspx
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1. Trading Skill development: how you defint it
A systematic program of learning that emphasizes pattern recognition, an understanding of market movement across time frames, intermarket relationships, sound execution of trade ideas, and risk management.

Philosophy:The following lines summarize our philosophy about markets and trading.

2. We live in a word of probabilities, Successful market forecasting is simply trying to put those probabilities in our favor. Our disciplined approach of showing market short term strength/weakness can and will consistently lead to profitable trades.


3. Trading success is a function of possessing a statistical edge in the market and being able to exploit this edge with regularity. Trading failure is most likely to occur when you trade subjective, untested methods that possess no valid edge or when you are incapable of consistently applying edges that are available.


4. Keep technical systems simple. Complicated systems breed confusion; simplicity breeds elegance.


5. Discipline, consistency and patience are the traits that will be rewarded when investing in markets.
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Mr. K post ref.
Counter-Trade
If price should do something but does NOT do it, then it can lead to a more powerful trade in the OPPOSITE direction - which has implications for type of day structure and future opportunities. You can't forecast trade failures in advance, but when they occur, they can put you on the right side of the market while other inexperienced traders scramble to figure out what went wrong and stop-out in confusion." - Corey Rosenbloom
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How to Be Yourself
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Trading advice given to a newbie when asked


1.) Look deep within yourself and determine if you have the tenacity to get kicked in the balls over and over – and then be able to stand up tall and repeat “Thank You Sir may I have another”

2.) Take any ego you have and shove it up your ass – it will not serve you in trading…, and while your at it shove your opinion up there also

3.) Confidence is not ego – learn the difference

4.) Start a journal and a trading plan – these will be about the only books you “need”

5.) Determine the type of trader you want to be (hint profitable is not a choice at this point) and stick to it

6.) Trading ain’t rocket science – price going up – buy it… price going down – short it – figure out how to determine what price is doing with the least amount of crap on your charts

7.) No one knows what the hell the market or a stock will do today, tomorrow, in 5 minutes – so don’t ask, and don’t act like you know

8.) The more you learn from books, gurus, shills – the more you’ll have to unlearn later (your decision on how hard you want to make it on yourself)

9.) The more time frames – of the same stock you’re trading – the better – to a point

10.) Preserve capital FIRST, make money SECOND – ALWAYS

11.) Trading is not about being right, it is “ONLY” about making money

12.) Learn to shut off the voices in your head – they are of no help

13.) Everything you read, or are told – is not yours until you work to make it so (now figure out what the hell I just said)

14.) Trading is a lot of work – don’t kid yourself – many broke people have

15.) I’m giving you advice now – during market hours I’ll take your money – and not say a word

16.) Trading profitably is not the destination, it is only a journey

17.) You WILL trade EXACTLY who you are inside – you have no choice in the matter


Now I’ve shared a starting point – as with all matters – the decision on what to do with it – is yours


Successful Journey to You should you decide to pursue it – but don’t pursue it lightly

RN



This is the best advice so far. It is obvious that it has been wtitten by a trader who has taken the 'journey'.

I would just add to this that it is indeed a journey that will test your limits. As you can see you have only ignited a powder keg of egotistic backbiting and silly bitching-which is 90% of the content of this forum.

1) My personal advice would be to get a night shift job, spend as much time in front of the markets as you can amd learn to trade using price action (find the good books and threads relating to this).
2) Price action is far more realistic and effective than trying to find miracle indicators.
3) Then paper trade until you have a profitibable system.
4) After this you will trade live on a small account and you will find that when it comes to real losses you will probably start losing when you expected to win. This is okay, it is the start of the real slog to control your emotions and this is the keystone: without it the whole building crumbles.

5) You are young and ambitiuos but you need patience, dedication and humility. Many young people have not got this-be warned. But it can be done. Good luck.
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Trading system of me

asr: on this post RedneckTrader said he has 2 teenage sons..
Sir

IMHO - Very good question you’ve raised

My biggest obstacle was, and remains to this day – me


Below is an excerpt from a document I created to help me get the hell out of my own way

I’ve removed some items I don’t wish to share – otherwise I hope it doesn’t come across too egotistical – it’s not meant to be.

Take Care
Redneck




The System of Me

My Trading Truth
•I trade who I am
•My trading is a mirror into my soul

To remain consistent with my trading truth I will;
•Maintain spirituality (inner peace)
•Journal (To make me distinguish reality – from what I “think” reality is)
•Exercise
•Decide each day – who I am – who I will be – what I want to have happen
•Completely accept that my only enemy – is me
•Completely understand why I trade

•Trade only when I am emotionally calm and centered
•Trade with total – clarity – awareness – and freedom
•Trade with a complete singularity of purpose

•Completely understand and accept the market for what it is
•Completely understand and accept a stock’s price for what it is



My Trading Perspective
•To be a consistently successful trader I must use a system that matches my perspective


From what perspective will I decide to trade today?
•Greed (Loves to win, looks for big winners, sometimes allows a winner to turn into a loser, prone to overtrading)
•Fear (Hates to lose, sometimes cuts winners short, prone to hesitation when pulling the trigger)
•Ambivalent – harbors neither fear or greed – identifies setups and trades them, exit’s as required


•Extrovert (prone to being impatient)
•Introvert (patient, sometimes too much)
•Centered – neither impatient, or overly patient



•Tendency to have weak opinions (prone to requiring too much confirmation before entering a trade, or of needing to know the unknown)
•Tendency to have strong opinions (prone to projecting wants, needs, will, and/ or desires onto the market)
•Opinion-less – it is what it is



•Ally (willing goes and/or agrees with the market – sometimes to the point of getting freight trained)
•Opponent (fights and/or disagrees with the market)
•Detached – simply reacts to what is observed every moment – remains in the present




My Profitability Goal
•Increase winners
•decrease losers

My Profitability Facts
•Good traders learn from losers
•Great traders learn from winners
•I will learn from both

•I absolutely know my next winner or loser does not matter one damn bit




My Growth Goal
•I must continuously grow my mental, physical, and emotional capacities in order to effortlessly flow with the market

•I must know, appreciate, and continuously grow – the successful trader I am.


The tools I will use to grow;
Journaling
•I will journal the following every trading day
oBasically every damn thing
oWinners – why they won – amount they won
oLosers – why they lost – amount they lost
oDays of week, times of day – of each trade
oTrades I did not take, their outcome, and why I did not take them
oMy emotions, thoughts, reactions throughout each trade
oThe amount of sleep I had the night before
oMy meals and meal times
oMy exercise
oMy greed / fear meter
oA printout of daily chart

I will periodically categorize my journal and review it to identify poor behavioral patterns. Identifying these patterns will force me to bring attention to my shortcomings. Bringing attention to my shortcomings will force me to focus on, and fix my shortcomings.

Journaling will also help me stay in tune with myself, help me identify my shortcomings sooner, and enable me to resolve / eliminate my shortcomings earlier in their lifecycle.



Exercise – physical

•I will perform the following physical exercises daily
oAerobic 30 min. (To help breathing, relaxing, and establish my internal rhythm)

oStrength 45 min (To help overall wellbeing – promote faster healing – support emotional strength)
oFlexibility 10 min – 2 / 3 times a day (To promote limber mind and body)

Exercise – mental

•I will perform the following mental exercises daily
oMeditation 5 min. (To quiet my thoughts and center my being prior to trading)

oVisualization 5 min (No negatives, I will only use positive messages, and pictures, to set a successful preconceived set of notions into my subconscious)