Professional vs. Amateur

Discussion in 'Tutorials, lessons, examples and training' started by Blaine Tarr, Oct 7, 2019.

  1. Blaine Tarr

    Blaine Tarr forum leader won penny contest 24x won weekly contest 20x

    The hold my beer and watch this trade! Average first-time options trader:



    The Professional that has already been knocked out a few times and has figured out how to stay in the game for the next trade:



    I can assure you the guy in the 2nd video has had his fair share of bad jumps. But he has learned how to manage his falls so he can get back up for another one. Don't knock yourself out on your first jump.

    Like many things in life, trading is a skill that takes time to learn. Don't expect to get rich on your first jump. Don't give up either. Use it to learn from. I hope the guy in the first video gets his concussion taken care of and then spends time studying how to land a jump properly.

    Starting with small jumps and gradually increasing jump sizes over time as one learns how to land is the perfect analogy to trading. Start with small positions and build larger trades over time as your strategy starts to solidify and profits come in.

    It is easy to push buttons on your phone or keys on your keyboard, but do you know which buttons to push when? Or are you jumping to jump after you told a friend to hold your beer?

    The difference is, the professional spends time studying, training, practicing, and of course, reflecting on the actual events/outcomes of the profession. In trading that means:

    1) You've studied different trading/investing strategies
    2) You have had at least basic training, meaning you've learned how to use software to find stocks and place trades based on a strategy
    3) You've practiced your strategy either in a practice account or a real account using small position size.
    4) Post Trade - You then have reviewed the trade to help prepare for the next one. If it was a loss, do you understand why you lost? Could you have noticed the wrong entry sooner? If it was a win, do you understand why you won? Could you have let the trade ride longer or made more profit if you sold before or after you did? Did it affect the strategy? Adjust and start the process over.

    Always be learning, don't let one jump define you!
     

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