Delibrate Practice Idea's

[233jim 10]

I am a beginner trader trying several strategies part time for last 18 months. I started as a value trader, went into selling covered calls during the crash, and have been trying monthly income option selling strategies for last 6 months or so as well as leaning short. Regardless to say I have not had success, but at least have not totally blown out my IRA's.

 

I have decided to stop all trading in live accounts till I get a better handle on what I want to do here and prove to myself that I can do it in a simulation environment.

 

Anyways, day trading in the vain that Al Brooks teaches is appealing to me and I have decided that not being able to trade live (as I will be at work during most trading sessions) may be a benefit to actually learning how to do it. I know I have a lot to learn but feel with time (maybe years), effort and a dedicated deliberate practice routine I can get there eventually. My question to anyone willing to help, is what are some of the specific skills that I need to develop and what are practices that you have used to develop them in yourself.

 

For example, identifying a trend line is a VERY basic skill that I can develop by running a chart and drawing a trend line as soon as I see one. Another example could be learning to estimate a 67% retracement from a move by making a mark where I think it is and then checking it against one is calculated.

 

Anyone who has read Talent is Overrated or the Talent Code, may have an idea of what I am looking for. Any other comments on Deliberate Practice routines in relation to trading are also welcome.

 

Thank you in advance.

 

Jim

[TradeRunner 10]

Hi Jim

 

Welcome to the forum. Like you I also work during the day so can’t trade real time unless I’m on holiday.

 

My practice routine is as follows:

 

Weekdays

 

1. After work I replay the day’s action and enter trades as if trading in real time. I’m practicing using one instrument only: 6E

2. Before I start the replay I delete any trend lines and support and resistance lines that I drew the day before. I then mark up all the trend lines, support and resistance lines that I think will be useful for the day’s trading.

3. After I have finished replaying the day’s action I create an image for the day that includes my entries, stops, and targets and a summary of my day’s results. The utility “snagit” makes this an easy task.

4. After I have done this I review the days trading:

a. I mark entries that I missed or deliberately skipped (regardless of whether they would have been winners or losers).

b. Note how well I did at identifying support, resistance and trend lines

c. Note any problems / errors that need to be corrected.

 

Weekends

 

1. More reviewing of the trades taken

2. I go back and replay the good and bad trades including the trades that I missed or skipped.

 

I use Sierra charts to replay charts during the week because I its replay functionality is excellent and easy to use. At the weekend I replay the charts using OEC because this is probably the platform that I will use when I go live but I find its replay functionality difficult to use. Sierra charts costs $26 pm and OEC is $24.95 pm.

 

By the way if you are using Al Brooks then I would start by practising just one of his entry setups.

 

TradeRunner

[233jim 10]

TradeRunner,

 

That's exactly the kind of routine that I will be leaning to toward the end of my training. I may not ready in development for what you are doing, but that seems to be a great routine for later.

 

Thanks,

 

Jim