Strugglers find creative ways to struggle | stockbee

5/24/2007

Strugglers find creative ways to struggle

One of the side benefits of blogging is you get to understand different kinds of traders. Over the 18 months of blogging I have interacted with several traders, either through emails or telephone. There is an active set of traders who have developed many variation of some of the basic ideas here and added their own tweaks to it. Some have their own successful methodology and have shared many good ideas with me.

But there is one particular kinds of traders also whom have been in touch for long period. They just struggle to get a grip on trading. Some of them in last 18 months have been through various methods, various websites, newsletters and they continue to struggle. What is most interesting is that they put enormous amount of energy in their struggle. So they are unsuccessful inspite of their efforts.

I have been thinking a bit about this for sometime. Some people just cannot define a logical stepwise methods or lack in confidence. As against that the successful ones have very different approach. For example:
  • There is a silicon valley based trader, he had run various backtests, changed and evolved rules and made his own system based on similar logic to Double Trouble. This inspite of having full time and very demanding job.
  • Some time back I exchanged hundreds of emails with a trader who very methodologically defined and tried to understand the earnings trade and Virgin strategy.
  • There is another trader who everyday does a thorough analysis of all earnings releases not only 100% plus and culls out 2-3 top ideas and trades them.
  • There is successful trader whose specialty is IPO,throughout the day she keeps sending out email alerts on IPO trade and if I need some info on IPO's ,she is the first person I catch.
  • There are 3 traders who everyday send me a copy of their analysis for every stock in Episodic Pivots and the logic for picking up trades.
  • I also get analysis of likely additions to IBD 100 and shortlisting of best candidates from IBD 200 from many people.
In 18 months I have learned so many new things from some of these people.

As against that the struggler find more and more innovative ways to struggle. They just cannot somehow define a method and continue to flirt from one method to another. If a sector is hot, they get excited by it. If one call by Crammer is right, next 3 months they are after Crammer. Next they get excited by Elliott Wave or Fib or some concept and then put lot of effort in to it. It is interesting glimpse in to the psychology of some of the traders who fail to make it or continue to struggle.

6 comments:

Semsons said...

I guess your article applies to trading and everyday life. I think it's mainly a problem of lack of conviction.

garytt said...

There are some who say you need to be in the market for a full cycle to gain the experience needed to trade effectively. I would so that is good advice. Those of us who have been in this market since late 1990's have just about reached that point and are hopefully making more money than we give back. There is no substitute for expereince no matter what kind of system you use or how intelligent a trader you may be.

Susan said...

"As against that the struggler find more and more innovative ways to struggle"

That comment is kinda funny, more and more innovative ways to struggle :)

Amit said...

Another interesting post Pradeep.

Would be interesting to know more about how you started... did you start trading full time or as a supplement to your full time job? Did you start with a huge trading capital ? How long did it take you perfect your trading system ? Whom did you look upto when you were learning trading?

Of course you have the prerogative of choosing what to answer. But answers would possibly help the 'struggling traders' skip reinventing the wheel.

Having said that, I agree with what Garytt said, "there is no substitute for experience". Great traders have struggled (and learnt along the way) and I have yet to see a trader who started with and continues to do profitable trades only.

Pradeep Bonde said...

There is good struggle,which everyone goes through when learning new skill or new subject. You know at the end of the day that person is making incremental progress, which that person himself also realizes. You are talking of that in case of great traders.

There is another kind of struggle, which is a struggle with no purpose. Probably some of these people have a bigger underlying psychological problem, not necessarily related to trading.

Pradeep Bonde said...

Gary
"Value of experience is overrated, usually by old men who nod wisely and speak stupidly.
In truth, experience teaches thoroughly yet her course of instruction devours men's years so the value of her lessons diminishes with the time necessary to acquire her special wisdom. The end find it wasted on dead men. Furthermore , experience is comparable to fashion; and action that proved successful today will be unworkable and impractical tomorrow."

The Greatest Salesman in the World by Og Mandino

Something to think about.