No, the Big T is not trading. That’s the little t. The Big T is Time. After all, at the end of the Big T is the Big D and yet time is something that most of us never give much consideration to – but we should.
At the start of another New Year it is not uncommon to think about where we’ve been and where we are going, or would like to go. Goal setting is good, but what we do with those goals is what is important.
When you realize that your life is only the amount of time you have, and that no one knows how much time they have to live, it should sober you up a bit and help you think more clearly about your life and goals. Which brings me back to the little t – trading. In light of the Big T, it never ceases to amaze me how many wannabe traders are content to flounder at trading. It’s not that trading is easy, it’s not, but it’s not overly difficult either. Certainly no more difficult than learning any other profession you might choose; which is the point.
Let me explain.
Most traders don’t treat trading like a profession. If anything they treat it more like a very expensive video game – something that makes them feel they are doing something valuable with their time and something that will give them a thrill. Traders like this hop willy-nilly from one market to the next, trying this, that and anything new in an effort to make consistent profits. They can’t help trying to re-invent the wheel time and again, but even with all their effort they fail to get any further ahead.
Why is that?
I realize that trading appeals to the Do-it-Yourself, pull-yourself-up-by-your-bootstraps type but when you reflect on your career as a trader, have you been wasting your (precious) time trying to master the markets on your own trying everything and anything, or have you been learning how to make money? If you’re like the majority of traders you probably are in the former group, not the latter.
But it’s not all your fault. There is probably more bad information in the “how to trade” arena than just about any other business. So what should you do? How can you get off the hamster wheel and start making your way to your much desired success?
Well, for starters here are my top four recommendations:
- Realize that there is no such thing as a perfect trading signal, so stop trying to find it.
- Realize that you do NOT need a perfect trading signal in order to make money.
- Consider evaluating a system that makes money instead of trying to develop your own. It’s not that you can’t develop your own, but would you rather re-invent the wheel or use a proven system to make money?
- Realize the importance of money management in trading. Correctly managing your capital will do more for your success as a trader than anything else you can do.
Do these things and I guarantee you’ll start moving in the right direction. And if you want a short-cut to your goal, check out the Diversified Trading System from IndicatorWarehouse.com, the system I use. It combines proven signal generators with proper money management to leap frog you ahead of the crowd – most of whom are too busy with the “how to trade” part of trading instead of focusing on the “how to make money” part of trading.
For more from Erich, visit the Indicator Warehouse for additional futures resources and NinjaTrader Indicators.