Welcome to my Trading World
We all start as "Newbies" but many make it through to be "Oldies" quickly because they do not stop and study how to stay a "Newbie" forever.
In order to survive as traders, we all need to keep new and fresh at all times and we all need to keep searching for a better understanding and a better edge. So if you are among the smart ones, you'll stay a "newbie" in spirit to keep traveling on this amazing journey.
Along the way you'll need to answer many questions about just how much stamina and patience you have and how much pain you can endure. Think of the maximum and then multiply it a thousand times and if you think that is asking too much of you, quit before you begin.
About your desire to hit the floor running, let me just say that most traders crash that way and can never return. Trading is not a race it's a game of endurance where preservation of capital is the goal and gain is the prize. You are not racing against anyone, except your own impatience.
So that said, Here is my step by step for new traders:
- Read and research before even looking at a trade. Everyone has their favorites and I'm no exception. Start with Trading for a Living by Dr. Alexander Elder. When you master that book and understand all aspects of it, read another one. There are many out there and I haven't read them all.
- Eliminate the noise. Yes, the noise of the internet until you have an idea of what they are talking about and know not to follow blindly. More easily said than done, I'm sure. Once you are familiar, you'll be able to choose much more wisely.
- Become wise by learning from the mistakes others have made.
- Take a class. Then take another and another. It's worth the investment.
- Practice trading with paper money. Not with $100K that most platforms give, but with $30K. Less is a better teacher here. I don't care what others say, you need to learn how to trade. Which means technically speaking, how to set up your platform, and get to know the machinery and the peculiarities of your platform.
- Start a log and a journal of all your trades. Yes paper ones, Log down all the trades and write down your feelings, thoughts, observations about the trade before, during and after.
- Honesty will save you money. Be brutally honest with yourself every day, but do not forget to praise yourself too.
- When everything fails, and it will, start all over. That's when you'll be grateful that it's only paper.
- Learn to visualize and to meditate. This will be your most important support and ally.
- Give yourself time. Be patient. The above steps if done right, will take several months. And each step is worth it's time consider it savings in the bank.
- Once you are a 100% success on paper, and you can point to a good record start SMALL with real money .
When you start with real money, realize you are only beginning this list all over again and everything will be 100% more intense because it's when you'll meet and get to know your toughest challenger: Yourself
Yes, it's as much a mind game as a technical one and the more prepared you are the easier it shall be to meet and defeat your demons.
Whatever the outcome, one thing's for sure, you are about to embark on an amazing journey.
Much Luck and
Happy Trading, Living and Dancing
©DayTrading with Anni 2011 All Rights Reserved
Great job of explaining a complex subject to help new traders. Keep it coming.
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