When you decide to learn a new skill or get into a particular sport later in life, you really wish to achieve results as quickly as possible. At the tender age of 10 or even 15, you don’t really dwell on the future because it feels like you’ve got all the time in the world.
So, you attend classes and sports practices, making slow progress. Some get where they want to be in life faster, others move at a slower pace but essentially everyone is equal, give or take. Every now and again, you come across extraordinary people who are willing to put the entire focus on their passion and practice from dusk till dawn.
But there’s no guarantee that such go-getters won’t experience a major burnout at some point and fail to become top players. With that said, these rare types of enthusiastic individuals are still more likely to strike it big. The rest may get to a particular level of proficiency but whether they will make it to the Big League is questionable. The same applies to trading where only a few end up becoming top traders.
As you mature, you begin to value your time a lot more and feel its pace differently. Here’s a fine example to illustrate my point. I’ve recently started playing tennis. Even though my coach claims that I’ve achieved good results considering my overall experience with it, I’ve still compared myself with professional players I’ve seen on TV and even other people at the sports club who were doing a much better job than I am.
However, they have years of training and practice under their belts. So, what matters here is not just the skills or natural gift but also commitment and a zest for the thing you do. As the years go by, we become harder on ourselves and expect faster and better results. From a psychological perspective, this makes all the sense because the clock is ticking and we strive to make the most of the time we have left.
Trading is no exception. Moreover, it is also closely linked to the world of sports. After an intense trading session, it feels as if you’ve just finished a six-hour-long chess tournament. But unlike athletes who have the liberty to take breaks between competitions, traders have to be on their A game every day. If you consider a major losing streak experienced by novice traders, you can get an idea of the possible stress and tension associated with it. This can be compared to overwhelming emotions Olympic athletes feel during the turning point of the competitions. But when it comes to trading, you have to deal with this every single day.
The ability to act bold while keeping your composure comes with experience only. What makes a trader different from an athlete is that the latter doesn’t lose money at the initial stage. Minus the practice fees, of course. Athletes simply gain necessary knowledge, skills and experience as they go, while those who are less skilled drop out. But traders can easily send their trading capital down the drain several times in the process of personal trading evolution and realize the importance of proper training already being on the verge of an actual meltdown. With that said, someone who is unable to approach trading as a sport is more likely to gamble without making any substantial progress. So, if you don’t have enough time or proper dedication for this type of work, you can consider investing instead.
So, is there a way to speed up this process? By watching educational videos? Reading books? What produces better results?
A solid knowledge base, video tutorials and webinars, as well as the latest information can undoubtedly help you make a significant leap forward. They essentially provide you with a benchmark to rely on. You see, it's just like walking in the dark - you need to have some sort of light or sound guiding you on.
As far as specialized literature goes, I often hear people claim that reading books on trading is a waste of time. Personally, I do not share the same sentiment. I am yet to meet a mathematician, physicist, or biologist who would say, "All of this is utter nonsense; better listen to what I have to say."
Now what about the books covering the topic of investment? Are people in the market or their reactions somehow different? Have computers and emerging software changed the face of the market? Think about it this way. All of them are based on algorithms created by people. Greed, fear and thoughtless decisions will always be there. At least as long as people run companies and are the masterminds behind the market and robots…
The books may factor in past experience and practices, but at the same time the market volatility, the nature of the price movement, or the patterns may quickly change. So, you should keep in mind that your goal is to understand the market and not just chase the patterns blindly.
Books serve as an excellent foundation. Of course, you can choose the hard path and start inventing the bicycle again, but what’s the point of doing that when there is already a clear manual to help you assemble it? You will get what you want much faster without losing the precious time. Plus, you will be able to adjust, improve and even remodel the finished product into a motorcycle or an electric bike.
Wish to learn how to read charts like a pro?
Download tutorial app for free
Another thing that can give you a head start is experience you can gain while reading the charts. Don't jump right into trading without proper preparation. You have plenty of time to do that, the market isn’t going anywhere. However, if you act rashly, you are likely to make emotionally-driven and not always sound decisions. That’s a sure way to become a gambler rather than a trader.
What you need to do first is learn how to read the chart i.e. understand where the price moves originated from, how the price behaved, what can be expected next, whether or not the anticipated movement occurred, why, what happened eventually, etc. Every time you analyze the charts, you will be able to get more answers to these questions directly from them. That way you can gradually generate your own statistics and build up experience. This is what professional approach boils down to, and this is how you succeed!
Autor: Viktor Makeeu
Protect yourself against losses!
Connect Risk Manager brought to you by Gerchik & Co!
Learn more about this solution