Is Learning to Trade Something You Are Born With?
There is a common idea that select people are born to trade. In my working career , after working alongside scores of traders, I have yet to meet a trader who could naturally trade without any trading education and experience . I will wholeheartedly admit that some traders are more adept than others to grasp the primary precepts of day trading , and I would also admit that a few traders have a difficult time learning even the rudimentary concepts of trading. After all, we are all assigned with distinct sets of skills , and we are not all set up to be futures traders.
This contrasts sharply with some other occupations . For example, I have a friend who is a gifted golfer. For as long as I have known him he could whack a golf ball out of sight . He can shoot even par in any weather conditions. He can even manage par when he is stone cold drunk , which in itself is a miracle. For reasons I don’t understand , this naturally gifted phenomena does not hold true in futures trading . Perhaps it is because of the natural illogic of trading methodologies , 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 have found that most individuals who are willing to put a certain amount of book work, a lot of practice, and dogged determination can can acquire the skills 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 number of people .
It is my opinion that successful traders are trained, seasoned and combine years of experience before they become truly leading floor traders. Unfortunately, trading on Wall Street is a very nerve racking field of endeavor and most traders retire the trading game before they realize their potential. Most influential investment bank trading rooms are filled with young traders, with a experienced veteran overseeing 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 starts to wander , but the trades I execute are normally well thought out and years of experience keep me out of the bad trades and help me to recognize the good trades.
And that is the rub. As a new trader you are going to execute some poorly thought out trades, it’s inevitable and it is okay, if you learn from your miscues . On a given day, there are many 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 good trader.
I want to make one very significant 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 business . You don’t have to be great , just good. On the other hand, if you stick with trading for a long while you have the potential to be great. The downside to this situation is humorous, though. You will be the only one 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. Work on the self-discipline required to make your trading effective . Avoid entering trades based on emotion. Further, always work 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.