Skill development requires practice. Skill refinement requires even more practice. Practice makes tasks that may initially seem impossible to perform, relatively simple to do. It also makes them automatic and executable with a relatively low exertion of energy. Think about driving a car, and you would recognize that the average driver without any conscious thought, makes most of the complex turns.
But is trading more difficult than driving a car? Yes and No.
Yes, because when one starts to trade, he or she usually has no idea what good advice to give or what a good method or a good mentor is. In most of the cases, he or she also does not know much about their deep relationship with money. In substance, what is missing to the novice trader are mental perspective and sensibility. Without those one can get lost or spend years in the search. In the best-case scenario, these are soft skills that can only be learned with a lot of practice, passion, and motivation. That is why a mentorship model is what works best with traders.
No, because trading is just a combination of substantially the same basic operations: make an analysis, make decisions and push buttons to enter orders. These are the same skills that you need when you drive. However, when you drive, you need much more coordination than an average swing or position trader.
If you are new to trading or you are still looking for the magic formula, here are some suggestions for you:
- Cut down the noise from social media and the mainstream media.
- Spend hours and hours studying one (and only one) simple approach to market speculation that works. It can be fundamental, technical or a mix of the two. Choose one, but it must be simple and “anti-fragile” because you will have to be able to perform it a million times and under lots of different circumstances.
- Find a group of like-minded traders or a mentor so they can provide a good framework for you. Mentors can also give you great advice in order to develop and refine your skills, and that will allow you to survive the first few years.
If you like a technical discretionary approach used for stocks, commodities, and currency trading that does not require you to fix the screens for hours a day, you may be interested in joining my free list.
Every Sunday I will send you the “Special Situations Report”: a selection of the best chart patterns of the week in the forex, commodities, and financial markets. I make my list; you then can begin to make your working list. Do it rigorously. Make it a sticky habit. I do mine every weekend and I never miss one. It’s one of the practices that make me a better trader.