Trading Success III

BarroMetrics Views: Trading Success III

( Continuing with what is required for expertise)

Time

There are two aspects to this:

One aspect, is how much time do we need to internalize the skills needed to become an expert?

Ericsson suggests at least 10,000 hours; others suggest half that. Irrespective of the numbers, some period of extensive training is necessary. So guys and gals, you can forget the ads that promise to turn “S1000 to $200,000 in a few months, from day 1, no experience and effort” necessary. To turn S$1000 to $200,000 in a few months consistently over time is the act of an expert. And science says that it’s not possible.

The other aspect is: how many hours a day do we need to spend in Deliverative Practice? The studies suggest two hours per day.

Coaches and Mentors

In our field, probably the most difficult of the factors.

Ericsson makes the point that the type of coach depends on the student’s stage of development. In the early stages, anyone will do provided he has has some competence and are generous in their time and praise. But as the student progresses, it’s critical the student find teachers who can advance their skills. Ultimately top formers align themselves with coaches who themselves have reached high levels of achievement.

SUMMARY

I have found trading to be one of the most rewarding professions in the world. But the rewards come only with the right effort, time and money. No shortcuts, I am afraid.

10 thoughts on “Trading Success III”

  1. I am willing to put in time & effort.. But I have very little money.
    My income is low. I earn below the national average. Can I still succeed? Or shld I abandon my dream to be successful in trading ?

  2. Hi Winnie

    You can postpone your dream.

    Look to get a second job if time permits.Save and put away some capital.

    If you are in this part of the world (Singapore – Australia), you have access to CFDs; in other parts, you have access to micro FX. I mention this because with these instruments, you don’t need too much capital to start. But you do need some.

    So I’d say postpone rather than give up.

  3. Thank you ray. I hv a small capital. I hope someday, my trading income can substitute my working income. My friends think that I am such a dreamer…it’s a tough journey. I hope I can write a story in 5 years time…
    Thank you again mr. ray.

  4. If i may offer my opinion for Winnie. Never give up. Think through the problem and think positive, be optimistic and develope a curiosity in things and save,save save.
    When i was a young man starting out, i took a second job driving a taxi. I eliminated my overheads by buying a house rather than renting.
    My first house i paid off in 6 months by pure work and single purpose. Later thinking positive led me to meet people who invested,so i met a broker etc.
    Chance favours the prepared mind.But you need capital.Its been my observation that if you cant save,you cant achieve anything.
    I wish you all the best, cheers Baz

  5. Hi Winnie

    As Baz says, never give up; he has provided sound advice.

    In your quest, change what does not work and keep learning. In short take action and constantly seek to improve.

    I’ll be looking out for your success story.

  6. Dear mr bas, mr ray & mr Paul ,
    Thank you all for all the encouragement and cheers…
    Mr ray, I have enjoyed reading all your entries.
    A very good place to learn.

  7. Hi Winnie,
    I guess Ray would agree that there is one thing that he could not teach you:

    Confidence?! 🙂

    “Confidence cannot be taught.
    It comes from making decisions, taking action, and learning from experience.”

    (5 Qualities of All Great Traders – Joe Fahmy)

  8. Hi… I’m a newbie,
    can I become a successed trader?

    I don’t have enough experiences in trading, I’m still play demo account now, it’s about 2 month.

    What should I do to be successful in trading??

  9. Hi Dony

    Below is just my take mate.

    1) get an education – you need to create a structure to guide your decisions (trading rules); you need to know how to manage risk and your open positions (risk managment and money management rules); you need to understand how to apply your rules consistently.
    2) Identify your goals and the progressive steps you will take towards them, noting the benchmarks.
    2) Then take the steps and start trading – demo (around 10 or so trades to get a feel for the rules); then micro accounts. At this phase you are noting what works and what does not work for you.
    3) Once you are satisfied with step 2 results, increase your position sizes slowly over time until you reach your optimal trading capital.

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