38 steps to becoming a trader

And so he "auditions" all of this in order to determine what suits him, taking all that he has learned so far and experimenting with it.

He begins to incorporate the "scientific method" into his efforts in order to develop a trading plan, including risk management and trade management. He learns the value of curiosity, of detached interest, of persistence and perseverance, of taking bits and pieces from here and there in order to fashion a trading plan and strategy that are uniquely his, one in which he has complete confidence because he has tested it thoroughly and knows from his own experience that it is consistently profitable.

He accepts fully the responsibility for his trades, including the losses, which is to say that he understands that losses are inevitable and unavoidable. Rather than be thrown by them, he accepts them for what they are, a part of the natural course of business. He examines them, of course, in order to determine whether or not some error was made, particularly one that can be corrected, though true trading errors are rare. But, if not, he simply shrugs off the loss and goes on about his business. He understands, after all, that he is in control of his risk in the market.

He doesn't rant about his broker or the specialist or the market maker or that vast conspiracy of everyone who's trying to cheat him out of his money. He doesn't attempt revenge against the market. He doesn't fret. He doesn't fume. He doesn't succumb to hope, fear, greed. Impulsive, emotional trades are gone. Instead, he just trades.

Stage Six: Mastery (also from Vad Graifer)

At this level, the trader achieves an almost Zen-like trading state. Planning, analysis, research are the focus of his time and his effort. When the trading day opens, he's ready for it. He's calm, he's relaxed, he's centered.

Trading becomes effortless. He is thoroughly familiar with his plan. He knows exactly what he will do in any given situation, even if the doing means exiting immediately upon a completely unexpected development. He understands the inevitability of loss and accepts it as a natural part of the business of trading. No one can hurt him because he's protected by his rules and his discipline.

He is sensitive to and in tune with the ebb and flow of market behavior and the natural actions and reactions to it that his research has taught him will optimize his edge*. He is "available". He doesn't have to know what the market will do next because he knows how he will react to anything the market does and is confident in his ability to react correctly.

He understands and practices "active inaction", knowing exactly what it is he wants, exactly what it is he's looking for, and waiting, patiently, for exactly the right opportunity. If and when that opportunity presents itself, he acts decisively and without hesitation, then waits, patiently, again, for the next opportunity.

He does not convince himself that he is right. He watches price movement and draws his conclusions. When market behavior changes, so do his tactics. He acknowledges that market movement is the ultimate truth. He doesn't try to outsmart or outguess it.

He is, in a sense, outside himself, acting as his own coach, asking himself questions and explaining to himself without rationalization what he's waiting for, what he's doing, reminding himself of this or that, keeping himself centered and focused, taking distractions in stride. He doesn't get overexcited about winning trades; he doesn't get depressed about losing trades. He accepts that price does what it does and the market is what it is. His performance has nothing to do with his self-worth.

It is during this stage that the "intuitive" sense begins to manifest itself. As infrequent as it may be, he learns to experiment with it and to build trust in it.

And at the end of the day, he reviews his work, makes whatever adjustments are necessary, if any, and begins his preparation for the following day, satisfied with himself for having traded well.

Hello CV

Excellent Writeup

Thanks for Sharing

Regards
Sanjay

Great work CV

the original article was published in 'CTCN' by "Anonymous Trader".

The least that you could have done cv, was to acknowledge the source, and not make people feel that YOU have written this article.

It feels funny....u want credit for something u did not write.


Although I do appreciate that you DID post it helping others....I would not have criticised u , but when people here were congratulating you on your WISDOM????? you should have pointed out the source.

You have no idea how much your criticism is keeping me up at nights.

And I didnt acknoledge the source because there was none, I got it in a mail 2 years ago.I never said anywhere I wrote that article.

Your flaming tactics are gaining in sophistication.Keep up the good work


CV

FRAUD ALERT

Hmmmm I see The So Called Nigerian E-Mail Scam has now been picked up in Sierra Leone.

Everybody here who reads this Please Do Not Get taken in by This Scam

SavantGarde

About 3 months back, I got this same mail from ..... Burkina Faso ! Ha ha ha

Sunil Saranjame.

CV has acknowledged the source in his blog post in October 2006

http://epiktetos13.blogspot.com/2006...3_archive.html

Hey CV

Your posts are simply great, adds a lot of content and color to this forum. Keep more coming.

cheers

--------------------------------------------------------------------------
Pay no heed to what a critic says: no statue has ever been put up to a critic.

John Sibelius

thanks dear