PATH OF A TRADER IN TRADING
Each trader being a beginner or advanced will benefit from this blog. The fact is that each one of us has
to overcome difficulties during his evolution period in trading and these difficulties we can divide them in
3 mains stages:
1) FROM NOVICE TO FIND A PLAN AND LEARN A PROCESS.
When we get into trading we know nothing or what we think we know is definitely wrong. We can have
enthusiasm at beginning but in reality we are just hoping we will make that money as the guy promoting
himself or his chat on the socials. We think trading is simple and making money is only a consequence of
The real fact is that if you don’t have any true mentor any true guide you won’t be able to learn fast. I
don’t say you won’t learn but before learning and earning you will spend so much money in bs and poor
rooms/studies/dvd’s that will simply make you want to leave this job and not come back.
You will be attracted by rooms where guys with maybe a broker behind them will suck you up in their
pumps and fool you and where you will follow alerts making only the FURU rich.
This is the time when all your patience is needed, you are frustrated. You have no knowledge and don’t
know where to go. As a trader I would suggest you to simply learn from real traders and what they’re
doing everyday, following them, being in the right rooms and learning chart analysis / technical analysis,
fundamental analysis, price action.
You are no consistent at this time and time to time you will have a sparkle of geniality that will make you
earn something or maybe that will be just luck.
So listen good:
-learn a system that is profitable
-follow what more experienced traders are doing
-review your charts every day
-don’t follow who only shows big pnl but does not show his bad trades also
-away from furus who will promise you mountains
Testing and testing will be key of this period, you will be learning the basics, you will get familiar with
long and short concept, stocks or futures or forex, so now you will start deciding what to trade and start
building a process.
Process is the path from the moment you decide to take a stock into consideration for the trading day,
research, plan and taking the trade.
2) FROM INTERMEDIATE TO FIND CONSISTENCY
You opened your wings, you started to make good trades, you are definitely on the great side of trading,
the one that does not lose and make money. Well, it’s not like this: expect to lose in the next days
because losing is necessary and losing is absolutely normal with this job.
When I started I thought I would be 100% always correct and right in my trading decisions. I was wrong
and that’ s why during this phase you will be learning what is money management, the right way to
administer your portfolio and how to lower your risk for having low risk-high return trades.
This is the time that you are having doubts if your process is correct or wrong, where you revisit your
trading strategy because you see some lacks in it, where you are still expanding your niche and keeping
your eyes open because the next “genius” on twitter is showing his 10k trade and you want to know
What to do:
-track, track, track – you don’t need to trade many systems but choose one and become expert on that.
-learn how to read tape – this is one of the most important key points in becoming a profitable trader
-avoid noise, avoid confusion – keep your goals and respect them
-each day review your trades – learn from your errors
-find a good prop firm – choose a prop firm that has borrows, low fees and low commissions and that
wants you to become profitable. Check www.traderequity.com
-find a room where you can confront yourself with other traders and where you have a mentor with a lot
-work on your mental aspects – your emotions will play a key role in trading so learn how to avoid big
errors that will push you back
3) BECOME A PRO TRADER
ENDPOINT or GAME OVER
2 streets are open in front of you now. Remember traders when Indiana Jones in the Last Crusade takes
the leap of Faith, well this is the time where you will feel that adrenaline because now you have a choice to make. You have found a strategy, you can control your emotions and when you are wrong you can
trigger that stop-loss but now you have to decide if to go full time and abandon your steady job or to
remain where you are.
There is not a right or wrong choice. I can tell you I won’t ever be able to do a normal job but this
depends on your personality. Are you willing to risk something for what you love? This is the time you
will need to make a decision.
Surely if you chose to go full time you will need to take care of who surrounds you, your rent, your
mortgage, your family. You have to be able to trade some size in order to do this and at this point
pressure will influence your trading. This is what happened to me 3-4 years ago when I passed from
trading futures and big caps full time to also incorporate small caps. Dynamics, price action, setups are
somehow different and that needs a moment of adapting and so the size you use for trading.
So be self-conscious that all this can affect your trading performance, can cause you doubts but know
also that it’s momentary.
If now you have decided to go full time you have embraced your dream.
Good luck trader