Got Skills

[lrushing]

Whether you’re a doctor, a basketball or tennis player, a musician, or even a cowboy, knowledge and skills are going to determine your status in your “community” of peers. The level of your knowledge and skills can either catapult you to world class status or usher you out the door; the demand for your services or performances will either increase or falter; you may even win awards and generate tons of money if you’re the best, or no awards and little money if you’re not.

Many people believe that the goal of trading is to make money. This writer believes that making money is a byproduct of the primary goal of trading, which is to acquire the necessary knowledge and skills to protect your capital. You simply cannot make money if you don’t have capital with which to make the money. If you are still struggling with your trading when it comes to making money consistently, take a look at your level of trading knowledge and skills vs. those who are actually making it work.

What do they know that you don’t? Why are they doing well while you are not? Where did they get the knowledge and skills to do so well? It could be anything - from your

• Knowledge (Have you mastered the concept behind candlestick charts, studied up on risk and money management in trading, established an understanding of the stock market price cycle like the back of your hand?),

• Skills (How good are you at identifying Traps and 3-Bar Candlestick Plays, or how quick are you at responding (vs. reacting) to the trade signals with the proper set up?),

Or even your

• Psychology (Are you too desperate, emotional, distracted?),

• Habits (Do you have the discipline to follow your trading plan no matter what, the tenacity to focus on the charts on your computer screen 8+ hours a day, the determination to get up every morning no matter how bad it was the day before to do it all over again?).

• Attitude (Are you willing to learn from your mistakes, to get help from experienced traders through coaching or mentoring, to practice patience and a willingness to do what it takes to succeed?).

At the end of the day, if you are deficient in your trading knowledge and skills, be prepared to work harder than those who are already successful. Commit to do what it takes to protect your capital and make money. If you don’t, you may well be ushered out the door sooner than you would like.

If you would like more trading tips and information or would like to comment on this article, please go to www.tradingeveryday.com/blog2.

[james_gsx]

I went through a phase where I wanted to know everything about technical analysis. At the end of the day, I realized it was just hurting me and making things too emotional. Ironicaly, now I don't use any indicators besides my pivot points and market internals, just price. It works very well for me, keeps things clear, and I can stay focused.

My biggest problem with trading is distractions. I will look up random things on the internet, look at cars, watch tv, and if I am not paying attention I'll miss a trade.

[torero]

We all tend to do that while waiting for a setup to appear. This distraction can be a good thing to reduce overtrading and get out of overtrading. It's ok if you already have your trading plan laid out for the day and just set alarms, if this is appropriate for you. This is what I do now, set my alarms at levels I see as relevant to my setups according to the trading plan and let the market do its thing until it's my turn.