This document is a system that creates a process of support in my development as a successful and consistent trader. It is intended as a guide to provide clarity and direction whilst on my journey. I hope to chop it down over time condensing into a much smaller document.
The purpose of this document is to develop a support system which will:
Be a map of how to continually erode the barriers of awareness and cognitive ability in the markets, thus developing a sense of ‘knowing’ or ‘intuition’ to the market.
To help maintain an ongoing deep commitment in a fulfilling manner to my trading.
I will segment this document into categories that I see relevant to work on and develop plans to implement changes that will open my trading mind. Basically the segments represent areas I need to develop my awareness as a trader. Quick background, I have been trading for 16 months as of Nov 2012; I am supported financially and continue to trade a small trade account. I am Break Even for last few months and recognize that I could be at this level for a long time unless something changes. I am very humbled by the market and through this respect I am ready to move to the next level- that of a consistent earner. This is the first step of developing the mindset of a successful trader- isolating my strengths and weaknesses and having a through plan to implement changes in many areas.
I have made some decisions:
I am in the markets for the long haul, that is for the rest of my life. I want to be a successful trader 6 months from November 6th 2012. (Target Date 6th May 2012)
I am committed to learning as much as I can, whilst keeping a healthy dose of skepticism, with all the info out there- does not pay to fall down the rabbit hole..
I have rushed to trade and turned savings into losses- I am a losing trader.
Three goals which sum my approach now; first Goal is long term survival and protection of the small amount of capital I have left. The second is a steady growth of capital and the third is to make high profits.
I am aware that I am the weakest link in my trading system.
I have self directed internal drive to improve every day
I am aware that I have to change my approach to how I view the world around me.
A man can't spend years at one thing and not acquire a habitual attitude towards it quite unlike that of the average beginner. The difference distinguishes the professional from the amateur. It is the way a man looks at things that makes or loses money for him in the speculative markets. The public has the dilettante's point of view toward his own effort. The ego obtrudes itself unduly and the thinking therefore is not deep or exhaustive. The professional concerns himself with doing the right thing rather than with making money, knowing that the profit takes care of itself if the other things are attended to. A trader gets to play the game as the professional billiard player does -- that is, he looks far ahead instead of considering the particular shot before him. It gets to be an instinct to play for position.
Jesse Livermore
The Problems: Areas I am working with,
I have yet to maintain a brutally honest approach with myself really getting to the truth of my thinking and emotions.
I have shallow conviction in my trade system. I don’t truly know my edge, thus I have no confidence in its execution.
My Trade Plan needs developing and was not based on my personal needs, strengths and interests to name a few, until these present themselves in my life I will swim against the current and not with it.
I still think in certainties rather than probabilities.
I have not traded a consistent enough approach to really know what works and what does not.
To be brutally honest with myself (watch for a pattern to provide excuses and rationalization’s of my behavior)
In my learning be willing to step outside my comfort zone to gain insight.
Define trades in terms of risk rather than potential profit.
Identify when blind spots appear - The difference between what …