How to become good at trading a setup | stockbee

1/15/2014

How to become good at trading a setup

Finding a good trading setup is just one part of the task. Most things that work in the market are in public domain and if you are slightly motivated you can find several readily available setups that work. 
But becoming good at trading a setup is where the rubber meets the road.
There is no magic blue  pill which will make you good at trading a setup. It might cure your ED, but it is not going to make you money using a setup.
Many beginner traders and even established traders will every year buy several books, attend courses, go to bootcamps and many times disappointed. They expect to become good at trading a setup by attending few hours of course or read a book. 
There is simple reason why it does not work. It is called procedural memory.
Unless you spend hours and hours going through past examples and looking at how the setup looked on breakout day. 
How it progressed. 
Which one worked why. 
Which one failed and why. 
What was the profit in 3 to 5 days. 
What happened after that. 
Where should you have entered. 
Where should you put stop. 
Where and on which day should you exit. 
If I am going to use sell stops or trail how should I manage it.
Ten thousand hours of that kind of dedication will make you good swing trader.
 Are you man/women enough for that kind of effort...
If you are not stop trading , put money in index fund and forget about it or find someone else who can trade for you and give him or her enough incentive....
and if you actually put in tens of thousands of hours you will develop life long skil which you can take to your grave.... That is your best retirement scheme...
Choice is yours.

No comments: