From Here You Can Become a Really Good TraderJan 18th, 2014 | By Bella | Category: General Comments, Mike Bellafiore's (Bella's) Blogs, Trader Development, Traders Ask
During our recent webinar Solving Your Top Five Trading Frustrations I was asked:
What should a new trader expect from their P&L?
The video below is instructive in answering this question. It was shared by an SMBU Trading Community member. A Chinese bamboo tree takes five years to start growing—and then in five weeks it can grow 90 feet high. This principle applies to your trading.
Instead of obsessing about your P&L, obsess about building a solid trading base. Build trading skills. Here are some key items you ought to be focusing on:
a) Learn how to read the tape
b) Technical analysis
c) Find stocks that are “In Play”
d) Trading psychology
e) Trading setups
f) and much more
Next, build your PlayBook. Determine and outline in detail the setups that make the most sense TO YOU.
After you do this you should be here in your trading path:
1) Lose too much
2) Lose less
4) Slightly profitable
5) Consistently profitable
6) Consistently profitable with an expanded PlayBook
7) Get bigger in your A+ setups
You can grow quickly as a trader from Stage 4. It is unlikely you will grow quickly from Stages 1-3. It does not take five years to arrive at Stage 4 like a bamboo tree but it takes a significant period of time. For the developing trader, instead of focusing on P&L goals focus on building skills and then your PlayBook.
Are you willing to do the work to find Stage 4?
Do you have the patience and mindset to achieve Stage 4?
Do you have the resources to help you achieve Stage 4 success?
Do you have a daily rehearsal routine to become slightly profitable?
No one is going to ask you to go on CNBC if you make it to Stage 4. But this is a massively important accomplishment as a trader. And from here you can get really good.
You can be better tomorrow than you are today!