Study Time

Financial markets are closed for trading today, pending the arrival of Hurricane Sandy to the eastern seaboard from North Carolina all the way up to Maine and hundreds of miles inland as well. This historical storm event is well chronicled everywhere in the news… no need to elaborate further inside here.

I’ll resume trading when all financial markets resume normal operations again. Learned long ago that partial sessions and situations where some markets are open while others are closed = trading conditions that suck. Nothing more than listless spikes, drops and chop with wide bid/ask spreads mixed in for good measure. Serious traders learn to avoid sub-par conditions and concentrate inside ideal conditions with their chosen active markets.

These are times to study charts from past sessions going back days, weeks and even months before to test & research new ideas or solidify your existing beliefs. Real learning and education happens outside of live market action: when trading in real time with live action performance on the line, nobody learns much. Whether that is actual cash or sim, the only thing on your mind at the time of trading is results of win or loss. That’s it. Only afterwards when markets are closed, risk/reward is done and emotions are out is it possible for us to objectively learn with open minds.

So right now is a good time to do exactly that

To answer a continual steady stream of emails in one fell swoop… at this time we have adjusted our educational program offers to accomodate all. There is a level of participation available to suit everyone who is serious about advancing their knowledge and skills as a trader. I commonly receive emails from traders (outside our program) who complain or commiserate about losses and failures after the fact. They scab a few things together from random sources on the internet, try it out with real money and lose everything. Then seek words of wisdom or advice.

What’s left to say after that? It frustrates me to think such guaranteed failure and folly is preventable. The cheapest path to success in any endeavor is proper educational investment. The most costly path by a wide margin is random trial & error. How simple is that reality to grasp?

But the false allure of money-making “potential” from wiring money into an account and pushing keys with blind hope that some random act or another will result in money made is too great a gambler’s emotion to overcome with logic.

Fund a real account with $5,000 or $10,000 and maybe, just maybe something magical will happen despite all else. Invest $500 or $1,000 or whatever in educational information, and no chance for a gambler’s jackpot to be hit by random chance.

That difference between emotion and logic is what keeps the eternal churn of failed traders thru all financial markets are virtual certainty. Until the universal laws of human (animal) behavior change, people will forever be dumping hard-earned money in accounts and pissing it all away without ever gleaning a single clue on how to really succeed in this profession.

And thank God for that fact… or the relatively few of us on other side of those majority trades would have nothing to fill our trading-account coffers with. If not for the ignorant, stubborn and uncoachable masses, the potential for consistent (and massive) profits from the professional minority would not exist.

For more daily updates from Austin, visit his blog at Coiled Markets.