Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by Dr. Brett Steenbarger from TraderFeed blog discussing topics that new traders should learn.  Here are some critical lessons from the article that are noteworthy:

TAKE THE TIME TO LEARN THE BASICS BEFORE TRADING.  OBSERVATION OF THE MARKETS FROM MULTIPLE PERSPECTIVES BEFORE LIVE TRADING WILL SIGNIFICANTLY IMPROVE YOUR CHANCES OF SUCCESS.  HAVE A FRAMEWORK FOR HOW PRICES MOVE.  PUT IN THE TIME TO LEARN THE MARKETS AND ACQUIRE SKILLS BEFORE RISKING CAPITAL!

 

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Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  Below are a pair of posts by Mike Bellafiore from SMB Capital discussing good interview and new trader characteristics/qualities.  Here are some critical lessons from the article that are noteworthy:

BE ABLE TO DEMONSTRATE PASSION FOR TRADING!  GET ANY EXPERIENCE POSSIBLE SUCH AS READING BLOGS, BOOKS, STOCKTWITS, TRADE SIMULATORS, EXTERNSHIPS, INTERNSHIPS, AND FOLLOWING THE CURRENT MARKETS BEHAVIOR!  ALWAYS EVOLVE WITH DISCIPLINED FOCUS.

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Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by Charles Kirk from The Kirk Report blog discussing the difficulties of trading with an ego.  Here are some critical lessons from the article that are noteworthy:

YOUR EGO IS THE ENEMY! IT WILL SKEW YOUR THINKING AND EXCITE EMOTIONAL RESPONSES. RECOGNIZE JUSTIFICATION MODE AS SOON AS POSSIBLE TO AVOID CATASTROPHIC LOSSES. ANALYZE THE MARKET FROM LONG AND SHORT PERSPECTIVES TO BALANCE OUT YOUR EGO! LEARN TO LIMIT THE NEGATIVE EFFECTS OF YOUR EMOTIONS!

 

Blog Post Highlights:

 

Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by Mike Bellafiore from SMB Capital blog discussing tips for interviewing.  Here are some critical lessons from the article that are noteworthy:

BE ABLE TO PROVE YOU ARE PASSIONATE WITH CLEAR EXAMPLES.  PROVE YOU ALREADY ARE AN ELITE PERFORMER. START TRADING WITH A SMALL CASH ACCOUNT.  PRESENT A CLEAR MESSAGE ABOUT YOURSELF AND ALWAYS REMEMBER A THANK YOU NOTE!

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Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by Charles Kirk from The Kirk Report blog discussing the pros and cons of being an independent trader working from home.  Here are some critical lessons from the article that are noteworthy:

PAST SUCCESS MEANS NOTHING!  TRADING WILL ALWAYS BE CHALLENGING AND REQUIRES CONSTANT EDUCATION AND LEARNING.  GOAL SETTING AND TIME MANAGEMENT WILL PLAY A CRITICAL PART IN YOUR DEVELOPMENT AND SUCCESS.

 

Blog Post Highlights:

 

Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by Dr. Brett Steenbarger from TraderFeed blog discussing the difference between those who succeed and those who fail.  Here are some critical lessons from the article that are noteworthy:

BE CREATIVE AND GENERATE MORE IDEAS ABOUT MARKET VIEWS.  BE MOTIVATED BY THE PROCESS OF FINDING SOLUTIONS! PERSISTENCE COMBINED WITH PROPER MOTIVATION CAN LEAD TO GREAT SUCCESS IN THE MARKETS!  THE MARKESTS ARE JUST AS FASCINATING WHEN THEY ARE CLOSED AS WHEN THEY ARE OPEN!

 

Blog Post Highlights:

 

Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by James Altucher from The Wall Street Journal discussing the important lessons he learned from his trading mentor. Here are some critical lessons from the article that are noteworthy:

TEST AS MANY TRADING IDEAS AS YOU CAN TO UNDERSTAND MARKET BEHAVIOR.  TRADE YOUR HIGH PROBABILITY EGDES WITH SIZE AND CONFIDENCE.  ALWAYS BE OPTIMISTIC, THERE IS GOOD IN EVERY SITUATION.  PROTECT, PROTECT, PROTECT PRECIOUS CAPITAL!

 

Blog Post Highlights:

 

Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by Jeff White from The Stock Bandit blog discussing overtrading and how to avoid it. Here are some critical lessons from the article that are noteworthy:

OVERTRADING WILL ERODE YOUR P&L!  KNOW YOUR TIMEFRAME, KNOW YOUR DAILY/WEEKLY PROFIT TARGETS, AND KNOW YOUR DAILY/WEEKLY MAX LOSS CONSTRAINTS.  DON'T THINK YOU ARE LAZY IF YOU ARE NOT TRADING!  IF YOU HIT YOUR TARGETS AND STOP TRADING FOR THE DAY/WEEK, FOCUS ON THE MANY ITEMS ON YOUR TO DO LIST.

 

Blog Post Highlights:

 

Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by Mike Bellafiore from SMB Capital blog discussing how the BP oil disaster can be an excellent learning opportunity for traders. Here are some critical lessons from the article that are noteworthy:

THERE ARE LEARNING OPPORTUNITIES EVERYWHERE. THE WILLINGNESS TO LEARN IS JUST AS IMPORTANT AS WHAT YOU LEARN.  PERFORMANCE IMPROVEMENT IS AN ENDLESS QUEST THAT SHOULD ALWAYS REMAIN THE FOCUS OF OUR EFFORTS!

Blog Post Highlights:

Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by Adam Grimes from SMB Capital blog discussing the consuming passion that is required to be an elite trader.  Here are some critical lessons from the article that are noteworthy:

TRUE PASSION CAN BE DEFINED AS LOVING WHAT YOU ARE DOING DESPITE THE CHALLENGE AND HARDSHIP! IT IS AN ALL-CONSUMING, OBSESSIVE DRIVE IGNITED BY SUCCESSES AND SETBACKS.  FAILURE IS NEVER AN OPTION IF YOU ARE TRULY PASSIONATE!  IF YOU ARE PASSIONATE, YOU ARE MOTIVATED BY NOT ONLY THE END GOAL, BUT ALSO THE  PROCESS OF LEARNING AND IMPROVING!

Blog Post Highlights:

 

Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by Charles Kirk from The Kirk Report blog discussing how resiliency is an essential characteristic of most successful traders.  Here are some critical lessons from the article that are noteworthy:

FIND THE TRADING STYLE THAT FITS YOUR STRENGTHS AND TRADE IT WITH A SHORT-TERM MEMORY, BOUNCE BACK QUICKLY WITH MORE FOCUS AND DETERMINATION!  DEVELOPING STRATEGIES HELPS BUILD CONFIDENCE, WHICH LEADS TO BETTER TRADING!  BE LIKE A SLINGSHOT, ALWAYS USE YOUR SETBACKS TO MOTIVATE YOU FORWARD!

Blog Post Highlights:

 

Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by Pradeep Bonde from the StockBee blog discussing how methodical thinking improves trading performance.  Here are some critical lessons from the article that are noteworthy:

DON'T GET SUCKED INTO OPINIONS ON THE MARKET! YOU CANNOT TRADE OPINIONS, BUT YOU CAN TRADE METHODS. FOCUS ON IMPROVING METHODS AND YOU WILL ULTIMATELY IMPROVE PERFORMANCE.  METHODS TRUMP MARKETS!

Blog Post Highlights:

Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by Mike Bellafiore from the SMB Capital blog discussing how how teamwork and sharing can improve performance.  Here are some critical lessons from the article that are noteworthy:

PERFORMANCE FOR ANY TASK CAN BE IMPROVED BY WORKING IN TEAMS.  TRADING IS NO EXCEPTION!  YOU NEED A TEAM TO BALANCE YOUR RISK AND LEVERAGE YOUR TALENT.  SHARING TRADE SETUPS ALLOWS THE TEAM TO FOCUS ITS ENERGY ON WHAT WORKS BEST.  YOU CANNOT WATCH ALL THE STOCKS ALL THE TIME, THAT'S WHY A TEAM CAN BE ADVANTAGEOUS AND HELP TRADE YOUR BEST SETUPS!

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Trading Experience - Lesson Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by Charles Kirk from the The Kirk Report blog discussing how experience can be a disadvantage if you are unwilling to adapt.  Here are some critical lessons from the article that are noteworthy:

ALWAYS REMAIN FLEXIBLE IN PERSPECTIVE! THE MARKET WILL ALWAYS CHANGE AND YOU HAVE TO CHANGE WITH IT!  CONSTANTLY WORK ON NEW TRADING METHODS TO MAINTAIN A CONTEMPORARY MARKET VIEWPOINT!  IF YOU ARE ALWAYS LEARNING, YOU ARE ALWAYS ADAPTING! NEVER STOP LEARNING!

Blog Post Highlights:

Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by Charles Kirk from the The Kirk Report blog listing the importance of passion to long-term success in trading.  Here are some critical lessons from the article that are noteworthy:

PASSION IS PARAMOUNT!  THINK ABOUT THIS THE NEXT TIME YOU THINK YOU ARE TOO TIRED OR BUSY TO FOLLOW THE MARKETS!  WOULD YOU STILL STUDY TRADING IF YOU DIDN'T MAKE ANY MONEY? DAMN RIGHT I WOULD!  YOU NEED TO BE DRIVEN BY MORE THAN JUST FINANCIAL REWARD IN ORDER TO MAINTAIN MOTIVATION!

Blog Post Highlights:

Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by Dr. Brett Steenbarger from the TraderFeed blog listing the characteristics successful traders.  Here are some critical lessons from the article that are noteworthy:

USE A CHECKLIST TO KEEP YOUR ACTIONS IN CHECK AND DEVELOPMENT ON TRACK!  THE AMOUNT OF TIME SPENT ON TRADING OUTSIDE OF TRADING HOURS IS VERY IMPORTANT.  ALWAYS MANAGE RISK AND CONTINUE TO LEARN NEW ABILITIES!

Blog Post Highlights:

Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by Dr. Brett Steenbarger from the TraderFeed blog discussing the effects of personality on trader performance.  Here are some critical lessons from the article that are noteworthy:

ACHIEVEMENT-ORIENTED BEHAVIOR IS IMPORTANT, BUT EMOTIONS CAN BE THE ENEMY.  SELF-CONTROL IS KING.  STAY RELAXED AND KEEP A CLEAR HEAD TO IDENTIFY GOOD OPPORTUNITIES!

Blog Post Highlights:

Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by Steve Spencer from the SMB Capital blog discussing the stages of successful trading.  Here are some critical lessons from the article that are noteworthy:

FOCUS, PREPARATION, CONSTANT POTENTIAL RE-EVALUATION, AND A DETAILED TRADING PLAN ARE ESSENTIAL FOR BECOMING A SUCCESSFUL TRADER!

Blog Post Highlights:

Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by Dr. Brett Steenbarger from the TraderFeed blog summarizing the various strengths needed to be an emotionall intelligent trader.  Here are some critical lessons from the article that are noteworthy:

TRADING THE MARKETS IS AN EMOTIONAL EXPERIENCE NOT UNLIKE ANY OTHER MEANINGFUL PERSONAL RELATIONSHIP.  THE MARKET IS NOT YOUR ADVERSARY, BUT YOUR COMPANION.  YOU MUST ALWAYS MAINTAIN OPEN COMMUNICATION WITH THE MARKET TO ACHIEVE POSITIVE CONFLICT RESOLUTION, WHILE AVOIDING PERSONAL EMOTIONAL RESPONSES THAT WOULD HAVE A DETRIMENTAL EFFECT ON THAT RELATIONSHIP!

Blog Post Highlights:

Trading Experience - Lessons Learned

My Lessons Learned posts acknowledge blog posts from around the web which illustrate exceptional ideas that are valuable to new traders.  The goal is to assimilate the wisdom of the experienced, instead of learning the hard way.  There is an excellent post by Mike Bellafiore from the SMB Capital blog discussing the failure rate of traders and what it takes to succeed.  Here are some critical lessons from the article that are noteworthy:

TRADING IS EXCEPTIONALLY COMPETITIVE, REQUIRES OBSESSIVE PASSION AND ENDLESS PRACTICE! OVER 90% OF TRADERS FAIL! BE PREPARED TO WORK HARD AND STRUGGLE FOR 6-8 MONTHS BEFORE SUSTAINING PROFITABILITY.  YOU MUST PRACTICE TRADES 100'S OR 1000'S OF TIMES TO DEVELOP ADEQUATE SKILLS.  ALWAYS HAVE A PLAN B!

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