notes from “trading faq”

Book as mentioned in a post yesterday.

The dream of most traders is to become a real market shaker…someone who can make bundles of cash in a reasonably short time frame, driving the latest and most expensive cars, living in a dream home and ‗working‘ whenever they feel like it. For some reasons, the stock market seems to attract this ethereal scenario of money trees waiting to be picked. It is true, some traders have made immense fortunes from this arena, but in all of my years of trading, I have yet to meet the overnight millionaire who makes money with little or no effort. In my own case, it took the best part of a decade to really understand the market, albeit with little or no assistance or mentoring, as in those days there were very few mentors who could or would assist.

To become a full time trader is at least a 3 year apprenticeship, and you must be prepared for some serious tests of character along the way. You will place trades and have some wins, some losses and some break evens, finding the difference between these three outcomes is what makes or breaks a wannabe trader. Some traders will discover the difference and then go on to prepare a solid foundation of rules and requirements to ultimately become a consistent winner. Others will desperately try to devise a plan and will fail, while the final and most common outcome will be to simply give up after losing too much money and being unable to determine why.

The best test of a semi professional trader is the cheque book indicator. If you have been trading part time with a smaller capital base and been making progress, you may well be ready for the final step.

also

Dr. Steenbarger explains that trading is a performance discipline similar to becoming a professional athlete, actor, or musician in which a person must progress through the stages of novice to competency and then to expertise, and this progression cannot take place in six months or a year.

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