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Showing results for tags 'trading experience'.
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There are so many novice traders who get introduced into the "Forex world" and they hear about all the money you can make in this profession, but after 6 months, a year, or maybe even 2 years if you a persistent, they give up trying to master the markets because they say its impossible or too hard, does this sound familiar? Sadly i hear about this far too often...I am a piano instructor, and lesson after lesson i hear "Teacher, i'm so excited, i practiced for 8 hours this week!" only to be disappointed because the piece sounded exactly as it did last week. The students weren't lying, they did indeed play the piano for hours, just like they told me, notice how i changed the word from "practiced" the piano, to "played" the piano? Just changing a single word, can have a huge impact on its meaning. To PLAY the piano is something i do for enjoyment, just pleasure for myself or for others, not planning on improving much of my performance during this period, but to PRACTICE the piano, to practice is to take your time, go slowly, look at the bigger picture, fine tune the timing, the finger positioning, the accents, dynamics, muscle control, muscle movement, taking a step forward in your skill/performance level by improving something that will better you as a pianist. This can be directly related to trading, people think that if they make tons of trades, they are gaining "experience" yes and no, you do need to make trades, and get the feeling of what making trades is like, watching the market unfold against you or for you, BUT taking trades alone, wont give you the experience needed to one day have the financial freedom we all ache for. There is a saying that practice makes perfect, but i think PERFECT practice makes perfect. Anyone can learn to have financial freedom from the markets, but it takes time, dedication, and will. Take the time to get the knowledge needed, PRACTICE and apply this knowledge on the market, and then start building up your experience. There are no short cuts in this field, but take one small bite at a time, and eventually those bites will get smaller and smaller and smaller. Go make some pips!
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Lots of people talk about "screen time" and its importance in the success of a trader. In essence, it's experience. Number if trades and number of hours. Although I would point out as I always do, that not all trades and not all hours in front of a screen are equal and in fact in many cases can act in quite the opposite way to what was desired. Yesterday was one of those days where experience might just have helped a trader out. The ES had been in a very balanced range for the prior 7 days and even with a bit of an extension upwards on Tuesday, there was a reasonable amount of information to suggest that it was still balanced. So suggesting that a short somewhere at the top of the range was a bad idea surely made no sense right? No. Because there are times when the ES just plods on in one direction only. It "one-timeframes". The experienced trader will fairly quickly spot that given the context of the auction, location and feeling for the way the market is trading, that the conditions are right for such a move and the chances of the market doing it are pretty high. Indeed, after the 1401.75 low was put in just after 10am, the largest rotation down was 1.75pts in a move of 13.75pts up and after the high of 1415.50 was put in, it still only managed to move 3.50pts lower to 12.00. It's worth noting that purely because the ES broke out of the range, it doesn't mean it would automatically grind in one direction without any reasonable pullbacks. Clearly it's potentially of great benefit to identify this particular type of market action early on. The rewards were pretty high and it could prevent you from fading the market thinking that you're getting a great price to sell at. What do you do to gain experience then? You must first have some sort of structure for framing the market and its behaviour. Understanding market movements relative to this structure will help you see things more clearly and develop experience at a greater rate. You must also document not only how you trade according to your plan, but what you see in the market's behaviour. Then if you can devise ways to clearly monitor and test these observations, you are well on your way to gaining experience (in terms of market awareness). Here is the chart from yesterday:-
