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The 38 Steps of Trading
Started:December 9th, 2009 (02:31 AM) by shodson Views / Replies:3,250 / 18
Last Reply:March 21st, 2012 (03:58 PM) Attachments:0

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The 38 Steps of Trading

Old December 9th, 2009, 02:31 AM   #1 (permalink)
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Orange County, California, USA
 
Trading Experience: Advanced
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The 38 Steps of Trading

I think I'm on step 29..

1. We accumulate information--buying books, going to seminars and researching.
2. We begin to trade with our 'new' knowledge.
3. We consistently 'donate' and then realize we may need more knowledge or information.
4. We accumulate more information.
5. We switch the commodities we are currently following.
6. We go back into the market and trade with our 'updated' knowledge.
7. We get 'beat up' again and begin to lose some of our confidence. Fear starts setting in.
8. We start to listen to 'outside news' & other traders.
9. We go back into the market and continue to donate.
10. We switch commodities again.
11. We search for more information.
12. We go back into the market and continue to donate.
13. We get 'overconfident' & market humbles us.
14. We start to understand that trading success fully is going to take more time and more knowledge then we anticipated.

Most People Will Give up at this Point as they Realize Work is Involved

15. We get serious and start concentrating on learning a 'real' methodology.
16. We trade our methodology with some success, but realize that something is missing.
17. We begin to understand the need for having rules to apply our methodology.
18. We take a sabbatical from trading to develop and research our trading rules.
19. We start trading again, this time with rules and find some success, but overall we still hesitate when it comes time to execute. We start trading again, this time with rules and find some success, but overall we still hesitate when it comes time to execute.
20. We add, subtract and modify rules as we see a need to be more proficient with our rules.
21. We go back into the market and continue to donate.We go back into the market and continue to donate.
22. We start to take responsibility for our trading results as we understand that our success is in us, not the methodology.
23. We continue to trade and become more proficient with our methodology and our rules.
24. As we trade we still have a tendency to violate our rips and our results are still erratic.
25. We know we are close.
26. We go back and research our rules.
27. We build the confidence in our rules and go back into the market and trade.
28. Our trading results are getting better, but we are still hesitating in executing our rules.
29. We now see the importance of following our rules as we see the results of our trades when we don't follow them.
30. We begin to see that our lack of success is within us (a lack of discipline in following the rules because of some kind of fear) and we begin to work on knowing ourselves better.
31. We continue to trade and the market teaches us more and more about ourselves.
32. We master our methodology and trading rules.
33. We begin to consistently make money. We begin to consistently make money.
34. We get a little overconfident and the market humbles us.
35. We continue to learn our lessons.
36. We stop thinking and allow our rules to trade for us (trading becomes boring, but successful) and our trading account continues to grow as we increase our contract size.
37. We are making more money then we ever dreamed to be possible.
38. We go on with our lives and accomplish many of the goals we had always dreamed of

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Old December 9th, 2009, 02:36 AM   #2 (permalink)
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I think I'm around step #31 to 33

But it fluctuates a few steps forward, couple steps back

Mike

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Old December 9th, 2009, 06:33 AM   #3 (permalink)
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New Orleans, La
 
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Who told you so much about me?

Do you know my wife?

JK... I'm at level 30 -31 wishing I was at 38-40... I'm sure it doesn't stop at 38

Thanks for the post

Rejoice in the Thunderstorms of Life . . .
Knowing it's not about Clouds or Wind. . .
But Learning to Dance in the Rain ! ! !
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Old December 9th, 2009, 05:47 PM   #4 (permalink)
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Toronto
 
Trading Experience: Intermediate
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Broker/Data: Zen-Fire
Favorite Instrument: CL , 6E
 
Posts: 193 since Jun 2009
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Very good post Shodson !!
So we all went through this right ?!

Makes me feel better about myself already !
Cheers

"Risk more than others think safe.
Dream more than others think practical.
Expect more than others think possible.
Care more than others think wise"
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Old December 14th, 2009, 02:21 PM   #5 (permalink)
Elite Member
Brazil
 
Trading Experience: Intermediate
Platform: NinjaTrader
Broker/Data: IB
Favorite Instrument: 6E, 6C, 6B and ES, NQ, YM
 
Posts: 93 since Jul 2009
Thanks: 44 given, 25 received


shodson View Post
I think I'm on step 29..

1. We accumulate information--buying books, going to seminars and researching.
2. We begin to trade with our 'new' knowledge.
3. We consistently 'donate' and then realize we may need more knowledge or information.
4. We accumulate more information.
5. We switch the commodities we are currently following.
6. We go back into the market and trade with our 'updated' knowledge.
7. We get 'beat up' again and begin to lose some of our confidence. Fear starts setting in.
8. We start to listen to 'outside news' & other traders.
9. We go back into the market and continue to donate.
10. We switch commodities again.
11. We search for more information.
12. We go back into the market and continue to donate.
13. We get 'overconfident' & market humbles us.
14. We start to understand that trading success fully is going to take more time and more knowledge then we anticipated.

Most People Will Give up at this Point as they Realize Work is Involved

15. We get serious and start concentrating on learning a 'real' methodology.
16. We trade our methodology with some success, but realize that something is missing.
17. We begin to understand the need for having rules to apply our methodology.
18. We take a sabbatical from trading to develop and research our trading rules.
19. We start trading again, this time with rules and find some success, but overall we still hesitate when it comes time to execute. We start trading again, this time with rules and find some success, but overall we still hesitate when it comes time to execute.
20. We add, subtract and modify rules as we see a need to be more proficient with our rules.
21. We go back into the market and continue to donate.We go back into the market and continue to donate.
22. We start to take responsibility for our trading results as we understand that our success is in us, not the methodology.
23. We continue to trade and become more proficient with our methodology and our rules.
24. As we trade we still have a tendency to violate our rips and our results are still erratic.
25. We know we are close.
26. We go back and research our rules.
27. We build the confidence in our rules and go back into the market and trade.
28. Our trading results are getting better, but we are still hesitating in executing our rules.
29. We now see the importance of following our rules as we see the results of our trades when we don't follow them.
30. We begin to see that our lack of success is within us (a lack of discipline in following the rules because of some kind of fear) and we begin to work on knowing ourselves better.
31. We continue to trade and the market teaches us more and more about ourselves.
32. We master our methodology and trading rules.
33. We begin to consistently make money. We begin to consistently make money.
34. We get a little overconfident and the market humbles us.
35. We continue to learn our lessons.
36. We stop thinking and allow our rules to trade for us (trading becomes boring, but successful) and our trading account continues to grow as we increase our contract size.
37. We are making more money then we ever dreamed to be possible.
38. We go on with our lives and accomplish many of the goals we had always dreamed of

Hi all,
I am sure that all of us can go easy until the number 35.
The difficult is the number 36. Stop to think and mentalise to follow your trade plan like a robot. If we pay a kid to do this, he (she) will do very good trades.

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Old December 20th, 2009, 10:56 PM   #6 (permalink)
Elite Member
San Jose, Ca
 
Trading Experience: Beginner
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Broker/Data: AMP/CQG
Favorite Instrument: Something moving
 
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Posts: 1,454 since Nov 2009
Thanks: 2,188 given, 2,133 received

I had hoped I was further along, but I think I'm only at around 15 or 16. Don't want to give up.

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Old December 20th, 2009, 11:24 PM   #7 (permalink)
Elite Member
Orange County, California, USA
 
Trading Experience: Advanced
Platform: NinjaTrader, thinkorswim, custom
Favorite Instrument: stocks, ES, NQ, VIX, options
 
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David_R View Post
I had hoped I was further along, but I think I'm only at around 15 or 16. Don't want to give up.

Stay with it, just don't blow out your account in the process. If you are determined you can do it, just trade small or on SIM in the meanwhile.

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Old January 22nd, 2010, 09:04 AM   #8 (permalink)
Elite Member
Florida
 
Trading Experience: Beginner
Platform: Ninja
Broker/Data: IB
Favorite Instrument: GC
 
Posts: 9 since Jan 2010
Thanks: 2 given, 2 received

Ouch, step 10 or so...got work to do!

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Old January 24th, 2010, 03:10 PM   #9 (permalink)
Just starting out...
Cincinnati
 
Trading Experience: Advanced
Platform: Ninjatrader
 
Posts: 10 since Jan 2010
Thanks: 0 given, 3 received

Hmm I don't know which number I am on. I think I have a disagreement with the one that says "it's not the methodology, it's within us". The thing with my history of trading, is that I really don't think I have discipline problems. I have always been solid as a rock with following trading rules, I just don't think I've found a methodology with a real edge yet... anyway my 2 cents.

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Old February 15th, 2010, 11:11 PM   #10 (permalink)
Elite Member
New York
 
Trading Experience: Advanced
Platform: NT
 
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Posts: 147 since Nov 2009
Thanks: 44 given, 63 received


Loved this scale.... I am at 20 ..... done a lots of mistakes in my past ... being quite successful recently ...but my premise is that you never stop to learn ( and that is why it is fun)..

You know what you know but you do not know what you do not know.
You do not see things how they are, you see things how you are.
In life you do what you want but you do not want what you want.
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