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I am a firm believer that trading education is a critical part to becoming a stable and profitable trader. Without education traders make mistakes that could be avoided. However at the same time learning from your mistakes is a critical part of trading, and a part of the equation that cannot be bypassed.
I have spent a good deal of money on trading education and was fortunate enough to know a few traders who mentored me personally. I would say I received first class trading education for a fraction of the cost that it normally would cost. However, I still made tons of mistakes in my first year or so as a trader. All of my mentors told me that this mistakes were unavoidable and actually part of the learning curve.
In trading, there are certain concepts that you can only learn by experiencing them. And what this usually comes down to is making mistakes and having failures and then getting back on the horse with a new knowledge and understanding of the markets.
I remember I used to always use the level 2 screen (a tool that in my opinion is not very helpful) and I would disobey my method because I thought price would breakout due to what the level 2 was saying. However after I lost money a few times doing this, I realized the level 2 screen is not accurate and reliable and I shouldn't be using it. Now my mentors all told me not to use level 2, but I disobeyed them and ultimately the only way I learned not to use level 2 was by experiencing failure with the level 2 screen and then growing from this experience.
Another great example of this is when I used to use indicators. This is something I talk a little bit about in the price action trading course, however in short I had the same experience with indicators as the level 2 screen. Finally I realized it was time to ditch the indicators and learn and understand price action--and this again was something that I only was open to doing after I had experienced a failure.
So while trading education is extremely helpful in making sure you don't blow out your account making stupid mistakes, there is also a need for trial and error in trading--and some of the lessons that stick in my head the most are the ones that I experienced first hand with my trading mentor.
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I always get questions from traders interested in the price action trading course regarding my 10 trading strategies which are outlined within the trading course. They usually ask what types of trading strategies are explained in the course, how well are they explained, but one very intelligent question that I don't get often but just answered for someone is:
"Do you use all 10 of your trading strategies all the time and how effective are they in everyday trading?"
Well, I realized that this is one of the few questions that I haven't talked much about in my blog or on the price action trading course information page, so I thought I would take a few moments to explain how I trade what I know and know what I trade.
I know all 10 of my trading strategies inside and out, yet in certain markets I am just better at spotting certain setups than in others. Some traders don't understand this concept. While it is important to trade what you know (in this case my 10 trading strategies) it is equally important to know what you trade. And by this I simply mean know the market you are trading and know the current behaviors of that market. For 1 month the 1-2-3 pattern may show up everywhere, then the next month it may only show up a few times but the re-encounter pattern might show up all the time.
So the bottom line is while it is super important to understand your trading strategies and setups inside and out, it is just as important to understand when these patterns are most effective and when they are occurring the most so you can know what to look for. Naturally as you progress as a trader you will also realize that certain patterns and setups are more natural for you as a trader, and you will begin to rely on those select few patterns more and more and more. Remember it only takes one effective and efficient trade setup to become an extremely profitable trader--in my trading course I give you all 10 of my trading strategies for you to pick and choose which ones are most effective for you as a trader.
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123LearnToTrade member staray22 posted a great new thread that I would appreciate everyone replying to when they get a moment. You can find the thread here: A Tale Of A New Trader...
Basically what he shared with us is his story of why and how he started trading, and was curious to hear the stories of others as well. I posted my whole story on that thread and I am also interested in hearing more about how and why everyone got started in the markets!
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