Mike-Great thought provoking post (The biggest question for a trader) as usual. Is there a way to determine what product and type of trading fits a trader? Does it really take trial and error? Has to be a better way….any insight here?
Thxs for reading as always BP.
1) You can take a personality test and use that as evidence of best type of trader For You. I have done this and actually learned some interesting things about myself. For example I have the type of personality that likes to sort out the answers to problems myself. This was very helpful for me to learn as a trader and coach. This also helps me to work better with my partners at SMB.
2) Developing traders want to get there too fast. Where are you going? Perhaps the biggest contribution we can make as trading educators over the next five years is to better set your expectations. You are not going to be good for three years. Yes you can make some money, pay some bills, when you first start, but do not expect immediate financial success. Too many enter our sport wanting to make a quick hit. That is just not going to happen.
I write about this extensively in my last book, The PlayBook. The way most bring traders into our sport is completely wrong. Careers are being ruined before they start. I offer a solution, which my publisher will appreciate me saving. But I ask you not to be in a hurry with your trading career. Yes there are things we can do to speed up your learning curve and get you into the right product, but take a deep breathe please. Great traders enjoy the journey.
3) What is wrong with a whole mess of trial and error? Let’s take a young basketball player. He might start as a Power Forward, then shift to Small Forward a bit later and maybe even to Point Guard as he matures. But the play at PF helps him as a PG. It wasn’t a waste.
Let’s expand this to a young athlete. When we grow up we play multiple sports. It was not until my Junior Year in HS until I quit one sport to focus on the other two. It was not until college when I narrowed my choice to baseball.
Why aren’t we trading different products and markets, and learning and making errors and tweaking to in the end become our best trader? It is because we want to get somewhere so fast. Where are you going? Nothing great is accomplished quickly. Maybe an above average intraday trader quickly is worse than as an options trader slower and later For You?
I really enjoyed your question. Keep working on your trading game!