04 Jan Weekly Update
What tools am I using?
When we set out to learn something new, it can get tough. You’ve dedicated yourself to learning the subject but going at it all alone is difficult. At first, I was looking for other people to learn trading together with. But now I know that even if my two friends that I started out with hung in there with me…. It would not have been ideal and I would have been really annoyed really quick with them. The reason, besides my sometimes not so charming personality, is that trading is very personal. It’s probably the most personal job in the world. And lonely. It’s personal because the way you look at financial markets and technical analysis (if you use that) dictates the way you will trade and thus learn. I see so many traders “teaching” (promoting) some kind of indicator that will help anyone anywhere trading in any market make millions of dollars. That’s just utter bullshit. Not saying that indicators don’t work. They just don’t work for anyone anywhere in any market. Some time ago I decided to disregard all indicators and just look at the prices ‘naked’. There are absolutely no indicators on my charts except channel lines. These I use to have some sort of indication of direction that the market is headed in. For entries and exits I look at the price action. If you have looked at a market long enough you learn to understand the way it ‘breathes’ and moves. This is what I aim to learn. This is not to say that indicators won’t work you. It’s just that an indicator is merely an interpretation of price action which I already have. That thing between your ears is well-adapt to interpret this price action and does not need some indicator. Whatever you choose… stick to it. Learn to trade off it. It will work eventually. You just have to learn the specifics of the tools you use and they will work in your favor.
Also keep in mind that the more people use a certain indicator. The more the professional traders have the ability to read when you will make your trade. This helps them to get an edge over you. If you use the tools they want you to use, they know how you trade. Sound paranoid?! Perhaps… but think about it for yourself. You’re clever enough to come up with your own ‘game’. Don’t play someone else’s.
You know what’s funny. At first I used to look at potential mentors for cues on how to trade. In a matter I still do but I look for other ‘cues’. Before, I was looking to them to tell me how to trade in terms of how to use the technicals. I don’t anymore. The technicals I will learn myself. I am putting in the time to learn technical analysis MY WAY. That’s the only way my friends. Your way. Not mine. Not someone else’s. I know that most are looking to others to tell them the secret to trading. I know I have. I look at mentors for other things. One thing ALL traders have in common is this. CONFIDENCE. That’s also, in most cases, the only thing that they have in common. More often than not you’ll see one talking about how fundamentals are a load of BS and then you look at another one claiming the exact opposite. One thing I know for sure. It’s about one thing and one thing only. It’s about… whatever works for you. I look at these guys to learn different ideas, thoughts but most of all… to learn to have a trader’s mindset. That’s what I am learning when I look at these men and women. So where do I find these, in my believe, heroes? I rarely watch anything else than the YouTube channel: ‘UKspreadbetting’. Not all the good people they interview I like a much. But more than not I will have that channel on in the background to kind of have a friend next to me while I trade. Someone to whisper good thoughts into my head. I’m not gonna name their names here because not one, in my opinion, is better than the other. They together as a whole I can say that I consider to be… my mentor. So head on over there and have a look for yourself. I hope it helps you on your way to become a successful trader.
How am I doing so far?
My biggest problem. And I’m guessing from most others that are learning to trade.. is discipline. I have good setups and am making money. But then I give it all back and then some because of the lack of discipline at that moment. This particular time I was not as fit. Not well-rested. I started ‘seeing’ other signs of the trade still turning into my favor. Which was of course complete bullshit. Lesson learned. I have a good setup. Wait for the setup. Trade the setup. Are there any deviations from the setup. GET THE F*** OUT! Be impatient with losers.
As always thank you for reading. Do leave a comment below and let me know how you’re doing.