Skip to main content

THEY DON’T LOVE TRADING

 Prop traders have learned that their performance when the bell rings is determined by the work that they do before the market opens.

 Those new traders who do not work hard do not do so because they do not love trading.

There is so much to do before and after the Close. You will not do all of this work unless you love trading. You just won’t. The problem is that if you do not do all that the market requires, you will almost certainly fail.


THEY CAN’T HIT STOCKS THAT TRADE AGAINST THEM

 One of the fundamentals taught by active trading prop firms is to hit stocks that trade against you. Those who never master this fundamental will fail.

Before every trade, you must develop a trading plan for where you will exit if your stock trades against you.

Feed your mind with the ability to immediately hit stocks that trade against your price.

THEY HAVE UNREALISTIC EXPECTATIONS

It takes time to become a consistently profitable trader. There are many things that a prop firm does to speed up a new trader’s learning curve. But they cannot make the learning curve disappear.

When you begin as a trader, you most likely will be horrible.This does not mean you should lose a lot of money when you trade live. A good training program will only place you in setups where you can succeed. You will trade the easiest setups when you start.

Comments

Post a Comment

Popular posts from this blog

CAN A FIRM ALWAYS SPOT THE NEXT GREAT TRADER?

 No. But a prop firm can tell who has a poor chance to become a CPT. To be good at anything will take everything you have. Not having developed the skills to work hard is a turn-off. Trading is a skill learned by doing, not just by reading a lot, theorizing, or the faux art of “paper trading.” THE PROS AND CONS OF RECRUITING EXPERIENCED TRADERS Loyalty is a good thing to a point, but it cannot trump logistics and reality. losing money should really bother you. If I am negative three days in a row, I spend a long evening on my couch with a bottle of red wine and comfort food. As traders, we can all recite the memorable line from Wall Street: “A man looks in the abyss, there is nothing staring back at him. At that moment he discovers his character. That keeps the man out of the abyss.”  Traders don’t talk about how they want to trade, what they want to read about trading, or how they wish they could talk about trading. Traders trade, read about trading, and talk about trading.
Post a Comment
Read more

Reading the Tape

 Dr. Steenbarger, aka the godfather of modern trading psychology, wrote: “My experience is that an understanding of (and ability to read) order flow is one important factor that separates the older, successful generation of day traders from the newbies who only know simple chart patterns and indicator readings.” continue working on the skill of reading the tape and to sell the stock on the offer when the tape showed weakness. “Reading the tape must be learned through personal experience and long observation.” keep in mind that nothing can top experience. Don’t give up. It is not always this easy to Read the Tape. But there are plays where it really is simple. And reading the tape will offer pattern recognition plays that you can exploit. Overcoming a Confirmation Bias We all fight confirmation bias. But it will harm our performance if we do not overcome it. Let the tape talk to you. And use online vehicles like StockTwits and your peers sitting next to you to gain second ...
Post a Comment
Read more
 All great leaders in every walk of life are highly sexed, but they follow the habit of controlling their sex desires, switching them into a driving force behind their occupation. The person who has self discipline understands the emotion of sex, respects it, and learns to control and transmute it into contructive activities. Q: Just what damage is there in over-indulgence of sex? A: The greatest damage is that it depletes the source of man's greatest driving force, and wastes, without adequate compensation, man's creative energy. Controlled sex supplies the magnetic force that attracts people to one another. It is the most important factor of a pleasing personality. It gives quality to the tone of voice and enables one to convey through the voice any feeling desired. It serves, as nothing else can serve, to give motive power to one's desires. It keeps the nervous system changed with the energy needed to carry on the work of maintaining the body. It sharpens the imagination...
Post a Comment
Read more