Attribute of a Good Trader - The Waiting

One of the most important things to do as a trader is develop patience. Once we establish patience as part of our disciplinary process, we will find and see those trade set-ups that will earn us the money...which is the reward for our patience.

"The waiting is the hardest part"

Trade Well !

Learn One Thing and Get Good

This commentary was first posted in the Eminiwizard member site.

Here’s a good article with good advice and one that ‘E’ (The Eminiwizard), as well as a few other E-Nation members subscribe to.

http://www.tradingmarkets.com/.site/stocks/commentary/editorial/How-To-Succeed-at-Trading-81039.cfm

When I first started trading, I was like a kid in a candy shop. I was trying to find my way and wasn’t sure what instrument I wanted to trade let alone what was best for me and my personality. I had no one to help guide me.

As I searched for my trading personality and the right trading instrument fit, I culled my many trading books, trading blogs and webinars, I kept hearing/reading a common message; “learn one thing and get good at it”, and then, maybe add another instrument later.

My initial attraction was towards stocks (too slow, good for my IRA). Then I tried options (better gratification, loved the idea of
‘the Greeks” but something was missing). Next was selling spreads (I liked it, made sense and still trade them on occasion but there was still some void). Finally, I discovered the E-Mini’s and it “clicked” with me (fast, analytical, multiple set-ups/strategies, methodology driven, quick money potential). This was the instrument that I wanted to concentrate on.

So, after about 1 1/2 -2 years of trading stocks, options/spreads AND futures, I have for all intense and purposes only been trading the ES for about the past 24 months.

This trading biz is the toughest thing I’ve ever tried to learn. It’s hard enough to learn how to trade, let alone how to trade multiple instruments. Some people can do it, I cannot. I need to concentrate on one thing and get good at it and that is what I am doing with the ES. Progress is being made as consistency in making, not losing money is being achieved…finally!

Passion, persistence, discipline, focus and patience. These are key elements of becoming an effective and successful trader. And it certainly helps to attain competence when one has a good mentor(s). E-Nation is a good place to be.

Trading is a journey, not a destination. Unless we continue to learn and grow in this biz, we will never realize the full potential to master the market, or at least understand it enough to make a decent living, stay out of trouble and avoid “working at Walmart”.

Trade Well !

May 6 Panic Play-by-Play

www.ETFreplay.com/backtest.aspx from Frank1970 on Vimeo.

Get Back on the Horse

Here's a very good video from Don Miller regarding the May 6, 2010 market. We learn from it, have safe guards in place and move on.

Here's an article regarding the "mystery trader" of the May 6th market plunge.

Trade Well !

May 6, 2010 - Experience

We don't see days like this very often but when we get them, a lot of traders make fast profits, fast loses and certainly get an education.

During the fall of 2008, I was about six months into trading the ES. I really enjoyed this trading instrument with all its volatility and personality. But there was so much to learn about it as we as myself.

I got hurt during that month of September that will forever be etched in my trading skull. I held and prayed my long would eventually go in my favor. It didn't. The market continued to tank and eventually I reached my threshold of pain and got out. It could have been worse, but with more seasoning and screen time, I would not have taken such a heavy hit. I was discouraged but my passion to learn this business and to achieve consistent success made me persevere.

Today I used that experience to my advantage. I've seen this extreme volatility before (not quite this fast and far in such a short period of time). I had a slight trip up but found myself backing off the pedal, evaluating and taking advantage of a couple long opportunities.

Experience. Putting in the screen time, observing various ebbs and flows of price action, watching price reaction during high and low volatility periods, developing a feel and intuition about the market. All this comes with time, patience and experience. Although I did not make a killing today, I was able to stay out of major trouble.

Because of the wonderful mentoring from the EminiWizard combined with past experiences, I was able to observe, participate and learn a little bit more.

Here's an interesting audio from the S & P Pit during the plunge and the hyper activity that took place.

Same audio from the pit but with live price action on a chart. Nice perspective.

What a day.

Additionally, Fari Hamzei shared his chat room transcript from May 6th on Twitter over the weekend and I wanted to include it in this record as part of the "historical" record.
We'll be talking about this day for years to come.



Trade Well !

Ramblings From "Taurus the Bull"

The bulls continue to run and don't seem to be ready to relinquish control anytime soon. And why should they since according to Newsweek mag, "America's Back - The Remarkable Tale of Our Economic Turnaround" everything is just fine with the economy.

Well, I certainly don't buy it (no pun intended) but one can't deny or stand in the way of the trend. Pre-market for intraday trading, I develop my plan, identify the possible range while trying to react and change direction if and when I'm wrong.

With my consistency building, loses under control and R/R better managed, I'm feeling much more confident these days. Pretty much since the first of the year, I'm seeing the market better, patience has greatly improved and methodology is continually being honed.

The Emini Wizard System and the daily live audio/charts by 'E' has also helped advance my trading ability. In addition, the great, supportive community within E-Nation is a wonderful way to spend the day as we learn and wait patiently for the next set-up.

So Dr. Brett of Traderfeed is taking a hiatus from his blog. I discovered the good Doctor about three years ago and have been a consistent reader of his blog as well as an owner of 2 of his three books. He is a class act and has certainly been an inspiration and big help to this trader. Personally, I believe that some day, (sooner than later) he will be back posting to his blog.

Trading mimics many aspects of life. Being an avid baseball fan, there are many parallels between trading and arguably the best sport on the planet, baseball. Read this article by sports writer Rick Morrissey. Many aspects of "the game" that are mentioned in this fine article are also part of what a trader experiences during her/his game day.

Ever look at speed limit signs along the side of the road as hammer doji's?

No arguing the fact that the bulls are in control and being stubborn. That's the make-up of many of us who are under the sign of Taurus the Bull. But in trading as in life, we can't develop a static bias that would deliver a hurtful blow when, not if, things change.

Enough ramblings. Needed to add something to my blog as I've been a bit remiss to say the least.

Trade Well !

Pattern Continuation

They say that a trader needs to log approximately 10,000 hours of screen time before s/he develops proficiency. I estimate my logbook to have registered over 6,200 hours during the past four years.

As my eyes observe and study price action, I find myself recognizing more and more "familiar" patterns, further developing the ability to add layers of information, learning to be patient, let trades come to me rather than vice-versa, control emotion, achieve consistency and increase confidence.

This year continues to drive deeper into the black as my trade selection and management has improved greatly. The hours of experience gained are beginning to translate into consistency and week over week progress.

Last year, there were moments when I felt I "clicked", only to be slapped down by the market. "Your not ready" yelled Mr. Market as "it" toyed and tortured my psyche. I persevered, continued to observe, take notes and work towards understanding more so I could improve my trading status.

I've said it before, this is the most difficult thing I have ever tried to learn and get good at. I'm getting there albeit slowly but progress is realized. About another two years of consistent screen time and study and the coveted 10,000 hour plateau should be reached.

For every 500 hours logged, I believe I climb one step higher towards my understanding and proficiency. It's all about passion, persistence, patience, ongoing study and determination to succeed as a trader. It's a pattern I established about four years ago and plan to continue.

Trade Well !