My wife and I just celebrated her one year anniversary of becoming a full-time day trader. In 2010, she joined me in the trading community to help support our Emini Academy, then started trading stocks for income a year ago.
Last summer we spent two months in Puerto Rico trading, studying, and surfing…
Some people take less than a year to become consistently profitable, and some people struggle for many years before giving up. My goal with this blog post is to give you insight into what it takes to develop into a consistent trader, and the pitfalls that cause most traders to fail. Unfortunately, there’s a lot of BS in the trading community, so I want to show you the progression of a REAL trader.
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Part 1 – Knowledge Acquisition
When you begin to learn any “performance activity” like golf, poker, or day trading, the first step is always LEARNING the basics. This includes terminology and fundamentals. Some people think they can just read a book or take a course and become a profitable trader. However, there are a ton of “knowledgeable” traders who lose money.
Part 2 – Skill Development
After someone learns the basics, then it’s time to develop the ability to test your knowledge in the live market. It’s very easy to see a successful trade in hindsight (or after it’s played out), but trading in the LIVE market is a completely different story.
In the beginning, you’ll probably screw up – A LOT. In this video series, I talk about all the mistakes you’ll make as a trader. Some people place the unrealistic expectation on themselves to start trading successfully the minute they look at a live stock chart, but you MUST experience all the mistakes. The key is learning from them quickly and not making the same mistakes twice.
Part 3 – Game Time
So after you learn the basics and develop your skills, then it’s time to “perform” in the live market. This means being able to make smart trading decisions in the heat of battle when you have real money on the line. Most people experience some emotion when they first start trading a cash account, and that’s ok. We’re emotional beings, and it takes most people time to develop a strong mental mindset.
I highly recommend reading two book to help with your mental game:
1. Trading In The Zone, by Mark Douglas (Teaches you the theory of psychological development)
2. The Mental Game of Poker (Gives you practical step-by-step exercises to implement the theory learned in Trading In The Zone)