Learning to Trade

OrderFlowDashPro

Member
76 9
Learning to trade is much more difficult then actually achieving trading success. You see from the outset "learning to trade" puts one in a disadvantaged mind frame. Unfortunately, even experienced traders can fall susceptible to losing the "context with winning" from which they derive their success even when they are confronted with what should be trivial changes.

Successful traders tend to fall into 2 camps. The first camp are what I call "process based traders". These traders have developed a "process" of interacting with the market in such a way that they can make better than chance decisions. What they've learned isn't so much a "setup" but rather a complex way of reading and synthesizing market information.

The second camp of traders fall into a category that is best described as "systems based". Systems based traders haven't really developed this process but instead have developed one or more quantitative systems that processes market generated information.

Some traders are able to breach and achieve success in both activities which is a great benefit. What beginning traders may not realize is that every trading style/method is a very specialized activity where even small changes require significantly different skills.

I believe this is the main reason that so many traders fail at day trading because they come into that with the skills that they learned from swing trading but lack specialized skills required to be successful.

If a trader has an experience in phoning in orders then changing that to placing the trade electronically could be enough for that trader to "lose his context with winning". It is especially true that "technical" problems tend to take one out of the state of flow. One has to be careful not too lose sight of the process when dealing with new technical challenges. Fortunately, adaptability is a strong trait for the winning trader and in time, weak areas can become strengths.

In order to help you understand what "context with winning" means, early on I learned that a breakout was when price breached a previous recent high or resistance. I did not find this useful and found it incredibly difficult too understand how I could make use of that. You see, I was understanding breakout in terms of lines on a chart, in terms of rules and definitions. It never made sense to me but when I restructured that into seeing a certain type of order flow and price action, I could "understand" trading "break outs" which in my case had very little to do with lines on a chart but price action that led to those lines on the chart.
 
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OrderFlowDashPro

Member
76 9
What can help a trader reach these flow states more efficiently? I'm going to share a few techniques that I've used to incredible benefit.

The first is an imagination technique where you imagine that you're a great trader and that more importantly one of the best traders in the world is watching over your shoulder. This trader both knows when you miss opportunities and when you take bad opportunities and he's constantly watching. He's watching and evaluating at every moment of the trade. If you don't trade at your best then he's liable to come at any moment and say, "that's enough, no more trading.". Again, it is not just about the trades you take but about the trades you miss and how you trade. As you "imagine" this trader watching over you, you will start to see and think in a more similar way.

This exercise creates the a type of positive pressure and positive feedback loop that can really help your performance.
 
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