TWC Forex

Do Some Trader Know How to Trade Naturally?

Posted on 03. Sep, 2010 by TWC Contributor in Forex

There is a common idea that some gifted souls are born to trade. In my working career , after working alongside scores of traders, I have never met a trader who could naturally trade without any extensive trading education . I will readily admit that some traders are better equipped than others to learn the primary precepts of day trading , and I would also admit that a few traders have a hard time learning even the most basic principles of trading. After all, we are all endowed with distinct skill sets , and we are not all set up to be futures traders.

This differs sharply with some different occupations . For example, I have an acquaintance who is a gifted golfer. For as long as I have known him he could hit a golf ball long and straight . He can shoot even par no matter what the weather conditions. He can even shoot par when he is intoxicated , which in itself is a miracle. For whatever reason , this naturally gifted phenomena does not hold true in futures trading . Perhaps it is because of the natural illogic of trading methods , or perhaps trading does not necessarily lend itself to natural ability. I don’t have the answer to this dilemma .

I am an hopeless optimist, and believe that most individuals who are able to put a certain amount of book work, a lot of practice, and dogged determination can learn to trade very profitably . I must add one caveat, however: I have met several people, a very small percentage, who simply were unable to trade, and it became noticeable very early in their training that trading was not going to be their profession . Again, this is a very small group of individuals .

It is my opinion that profitable traders are trained, seasoned and combine years of experience before they become truly leading floor traders. Unfortunately, trading on Wall Street is a very stressful field of endeavor and most traders retire the trading game before they realize their potential. Most leading investment bank trading rooms are filled with young traders, with a experienced veteran supervising operations of the trading room. I am 52 years old, and my time limit for trading is about six hours. My mind tires and my concentration wanes , but the trades I execute are typically well thought out and years of experience keep me out of the lousy trades and help me to recognize the good trades.

And that is the rub. As a beginning trader you are going to initiate some bad trades, it’s part of the learning process and it is okay, if you learn from your miscues . On a given day, there are a variety set-ups that look enticing , but there may be one factor that keeps that trade from being successful . Your ability to discern that single negative factor is what will make you a competant trader.

I want to make one extremely important point, though. You don’t have to be a great day trader to make money in the market. If you have learned a good system, have the proper self-discipline, and can execute your system with a high degree of accuracy…you can be very profitable in your trading endeavor . You don’t have to be the best , just good. On the other hand, if you stay with trading for an extended time period you have the potential to be great. The downside to this situation is humorous, though. You will be the only person who knows you are great. Unless you are trading for a large investment bank, you will have to be content with knowing you are a great trader and leave it at that. But who really cares? As long as your futures trading account reflects the profitable results you are enjoying, isn’t that enough?

In summary, learn your trading methodology inside and out. In my trading, I also learn a number of alternative systems inside out. Practice the self-discipline required to make your trading profitable . Avoid entering trades based on emotion. Further, always strive to improve your trading, keep a journal of your trades, and review the trades that did not work out so you don’t repeat them. And most importantly, be persistent and dogged in your approach to trading, strive for perfection, even though perfection is nearly impossible. We all have the potential to be great a day trader, but most don’t reach deep enough to realize their potential. Be one of the few that reaches his potential.

I am still a full time e-mini day trader and educator and enjoy the profession as much as ever.