Tuesday 19 March 2013

How To Trade Like The ‘Market Wizards 1

Hello Traders,

I am Joshua, a trader like you. I have been trading for over 5years now. This has come to my mind that i should use my experience in trading to increase the knowledge of up coming traders to have a link where they can also tap knowledge.

Initially, my thought was Forex Trading is no go area and the business is not for me. Couple with family issues and other extended and inner emotions. In actual fact, there is a spirit behind forex trading therefore, only those who are spiritually strong can make it in forex.

A friend of my called me very early in the morning in 2010 and told me that; " Mr Olaitan! forex trading is too risky a lot of people in my church have loose money that they borrow from people as a result of that, i will advice you to stop it" Unfortunate for me that was the period i lost my teaching job. Life was terrible and unfair to me. My wife mounted a pressure on me then i became afraid. All my trading account was lost, i couldn't tell my wife what was going on and at the same time getting another teaching to solve the problem was not coming forth. It was like spiritual attack to me. Within me there was a strong conviction about making it in forex but the voice was faintly, i can not pick from the spiritual realm into reality. Even till this present time some of my colleagues are on the fence of indecision. They are afraid of loosing their money, they want to go back to the basis. They don;t want people to make mockery about their failure yet, they are not comfortable with their present job. Dear traders, i am bringing this to let you know that, inadequate knowledge about forex trading can make you to burn several accounts and even loose your hard earn money to brokers.
Later i got to understand that there is no spirit contriling forex trading but traders determined the trend of the market. Conversant with information and news around helps to make decisions and plan on the step to take in forex trading. I have decided to seek for more information and married it with technical analysis. On the journey to seek more information, i came across my best friend who has being into this business for some years back and a good technical trader, who is also a writer. One of my friends mention his name and his site to me in a forum since then i subscribed to his mail since 2010 and i have being enriched with good information from him. I will like to share some his write ups and articles on my blog for some week from now on. This article i am going to tag them as series 1-5 sharing in this article, Nail fuller interview experience traders and successful forex trader. I will want you to sit back and enjoy this unpolluted information that will help you make the write decision in forex trading. Here is the first series and our comment on each Quotes of these forex Gurus of the our time.

How To Trade Like The Wizard (series 1)



The concepts and ideas discussed in this lesson are going to completely transform the way you think about successful trading. The knowledge you learn here today will inspire you to change the way you trade, how you think and how you act into the future.  Most importantly, if you study and apply these concepts, you are going to dramatically improve your trading performance.
This is by far one of the most inspirational and insightful articles I’ve written since I started writing back in 2008. I have immensely enjoyed producing it and I must humbly thank my good friend Larry for his assistance with research & writing as well as Jack Schwager and all the traders he interviewed, who are of course the true inspiration behind this article.
Enjoy…  Nial Fuller  – Australia.

Today’s article was inspired by the Market Wizards Book Series by Jack D. Schwager; a couple of my all-time favorite trading books. In the Market Wizards books, Schwager interviews various pro traders and picks their brains about how they became successful. One of the most intriguing aspects of the books that Schwager discusses at the end of The New Market Wizards is that despite having vastly different trading styles, there are “certain principles that held true” for all the traders he interviewed. We will discuss some of these principles and more from the Market Wizards books in today’s lesson.
There really is a lot to learn from these two books and much of what they discuss is relevant to the style of trading we practice here at Learn To Trade The Market, i.e., position / swing trading on higher time frame charts. There are also a lot of relevant and helpful points on money management and trader psychology, these parts of the books are what I found the most fascinating.
To write today’s lesson, I had to get reacquainted with much of what’s in both of these books because it’s been a while since I first read them. Note: this article is a lot longer than most of my lessons, so make sure you have an extra thirty minutes and your favorite coffee or energy drink before you begin if you want to read it one sitting.
Below, I have provided some of my favorite quotes from the pro traders that Schwager interviewed followed by a synopsis of what I feel are the most important points to take away.
In the preface to The New Market Wizards, Schwager says
“In conducting the interviews for this book and its predecessor, Market Wizards, I became absolutely convinced that winning in the markets is a matter of skill and discipline, not luck. The magnitude and consistency of the winning track records compiled by many of those I interviewed simply defy chance.”
This quote, and the ones that follow, should provide you with a lot of motivation and insight into how professional traders think.

Tips From The Market Wizards

(1) Michael Marcus:

“If trading is your life, it is a torturous kind of excitement. But if you are keeping your life in balance, then it is fun. All the successful traders I’ve seen that lasted in the business sooner or later got to that point. They have a balanced life; they have fun outside of trading. You can’t sustain it if you don’t have some other focus. Eventually, you wind up over-trading or getting excessively disturbed about temporary failures”

Summary


The above quote by Michael Marcus from Market Wizards, fits perfectly with our style of trading here at LTTTM. We focus on end of day trading methods and “part-time” trading. Essentially, what Michael is saying here is that if you let trading overtake your life, you will end up over-trading and getting too attached to positions. Just like anything else, you need a healthy involvement with trading, not an addiction to it.

With my humble experience, since the year i have been trading forex. To me it is phenomenon that every beginners will first under go. It can be called first experience because the instinct should be to make money and if they actually see it rolling, some will want to give it fight to fight bases and because of in experience they are, they will glue themselves to the system. That is why some are emotionally down if they eventually loose an account. I am talking basically from experience, i had gone through it before. The best method to avoid young traders from getting emotionally down is to understand the nitty-gritty of the forex trading and instructors share some experince with the traders before going into live and mentoring would help traders to stay long in the market and succeed.

Continues from the second series.

Happy trading experience
Joshua

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