Great post ez
When I was young... a wise man once told me. "There are no dumb people in this world. There are the educated and the uneducated." His statement had a big impact on my life as a teenager and I started viewing people differently from that day.
Just because one has a PHD from Harvard does not make him a better trader than a guy with a BA. Like ez mentioned, the knowledge and education required in trading is not found by going to colllege or university. I truly believe one must step outside box.... self education is a better term.
Do you have what it takes to do whatever you can to become a successful trader? Once you fall do you have the strength to get up? Developing traders will hit a big wall in their early stages. Whether you break this or not depends on your passion and motivation for the markets. If it wasnt for my passion, I would of never made it as a trader.
I do not have a college degree. Does that intimidate me? NO. Is english my first language? NO. Street smart? YES (according to most ppl I know)
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Please don't forget that whatever personal preference you might have for playing longs or shorts, price more often than not still moves up via the stairs and comes down via the elevator. |
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Absolutely true. Probably one of the reasons I tend to short more than I go long. (roughly 65% compared to 35%) I was also told by a trading buddy of mine that locals like to short it since money is made faster. (not sure how true this is)
Talking about questions...
Asking yourself questions throughout the trading day is a must. If I can not answer my own question, I choose to stay flat. I am not trying to predict market behavior.. all I am trying to do is analyze and intepret market generated information.
Couple questions that I like to ask myself are:
1. What is the market trying to do?
2. Is it doing a good job trying to do that?
3. Are they going to take it to the next line of S&R?
4. Is there price rejection above/below value?
5. Is there price acceptance above/below value?
6. Can the markets hold?
7. It's top of the hour (10am eastern), where will they take this market?
8. It's top of the hour (2pm eastern), where will they take this market?
9. Who's trading today? Locals, institutions, and private traders or just the locals?
Just a few of the hundreds of questions you may ask yourself.
Last thing I want to mention is that I am able to trade full-time because I chose to specialize in the YM for the time being. I know everything there is to know about the YM. This includes the ATR, personality, S&R levels, etc..
I know it usually respects the 00 level's. I know that it likes to go one way in the open and reverse. I know the pullbacks or retracements on a trend is usually 15-20 points. On a break of value, i know it likes to test the previous days high or low, etc....
Think of the financial instrument you trade as your gf. If you are not putting the time and effort to get to know her... she'll leave you in a heart beat. She may give you a hard time, may spend your money, and will never have it your way. Therefore its necessary to create rules... if she trades above and below the opening price, I'm not going to let her use my money until she breaks out of the opening range.
Regards,
James