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Can I really make it as a trader?

You alone determine whether you will succeed or fail at trading. You alone are in control; take responsibility for your performance and your life. There are always tremendous opportunities in the markets. It is not what happens; it is what you do with what happens that makes the difference between profit and loss.

However, you cannot marry a market or a single trading style. You have to look. Look at a variety of time frames and a variety of markets until you find the one for you, the one that fits your comfort level and trading style.

Most traders move from trading system to trading system, over time, until they find one that suits them… one that is comfortable to run, and tests well over (back-tested, then real) time. But don’t expect a trading system to work forever. Markets change too much for that to be practical.

On the other hand, some traders never stop looking for the perfect system. That, too, is a problem.

There are many systems or methods that can generate nice profits over time. To settle on a trading system that’s right for you:

First, you have to believe in the process by which the system generates trades. Who was Fibonnaci, what did he arrive at his methodology? Does it make SENSE to you?

Maybe you’re a visual sort of person and you are drawn to Candlestick charting. Take the time to understand why the patterns mean “reversal” and not just accept the “picture”. Go deep.

Second, whatever system you decide to go with, Back-test it. In today’s modern world of software, there’s no excuse not to run all the back data you can through your system and see what the results would have been.

THINK about the system you are choosing and why it’s right for you. THINK about the results you get from your back-testing and your real-time testing of your system.

BE A MACHINE (DON’T THINK) when you are trading your system.

Third, work on your discipline. Unless you can control yourself, you can never control your trading. In order to control yourself and your emotions, you have to believe totally in your trading system, or method, and above all, in yourself.


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Wednesday, 19 June 2024

Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.