It is about technique and how | stockbee

5/30/2014

It is about technique and how

Successful trading is about techniques and how to do it.

Couple of weeks ago as a part of Stockbee Advanced Bootcamp , I spent 3 days with a group of 30 successful traders who shared their trading methods , scans, daily process , success and challenges. They shared how they started, how they found their trading method. How they fine tuned it and how their trading has evolved over the years.

These are all individual traders doing this on their own. Many of them have done more than 7 figure profits trading in the market and some had 8 figures profit. Most of them are at it 5 years plus.

It was one of the best learning experience for all participants and eye opener for many . Almost everyone by end of 3rd day learned a lot and had a bag full of new techniques and ways to think about market. It opened many new windows for smart and motivated traders. There were several presentations where lot of others thought, oh that is neat trick, why did I not think of it before or I never thought of it like that before.

The way professional traders look at market is different from the way investors look at it. Most of the focus for professional traders is on techniques of extracting money regularly from the market. They are entrepreneurs looking for niche in the market where they can with small edge extract money while managing risk.

Some have very small edge but they make thousands of trades in a year to exploit it and as a result make good money. some focus on asymmetrical edges , where the payoff is  10 to 20 times their risk. Some look for fully mechanical and backtested approach. Some are primarily discretionary traders.

But the common denominator for all of them is about "how" of the trading process. The obsession with how leads them to experiment and develop efficient ways to find market opportunities. Most of those opportunities are no big secrets but it is how these people have found ways to exploit them is different.  

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