Should You Read And Study?

Hardly anyone studies at all, let alone implement the process described in this article. Most people don’t read anything. They are looking for the easy button. There are some people who have not opened up a book since they finished school. Others can get repulsed at the thought of opening up a trading book and reading it, let alone understand and implement its contents. Instead of reading a new book or article that challenges them, there are many beginning traders that would rather go watch an episode of “Deal Or No Deal”, which takes no skill to win. People who don’t study or read some books or articles, usually don’t like to invest their time in acquiring new skills. These traders typically fail. Trading success requires discipline, focus, and yes some studying and learning of new information and skills. You need to make it one of your top priorities if you want rapid success.

The learning process as I have learned over the years goes something like this:

1. Start reading a book recommended by other successful traders.

2. Actually FOCUS on reading the book and not getting distracted by email or facebook or anything else.

3. Be willing to accept that there are certain techniques that actually work. Too many people read books but believe that all the stuff won’t work for them, or that they are certainly different than the rest of them and don’t need to follow any rules. They think they can just wing it. You need to be open to the possibility that some of the techniques and strategies and information in the book can be useful.

4. Discover the fundamental truths about the market and human emotions that the book is trying to explain to you. It won’t always be accurate as your view of the truths in the market and about human emotions can change as you gain more experience both in the markets and in life.

5. Actually going out there and implementing the material learned. Execution and implementation is such a weird thing. People assign different meanings to the information learned in books. 1,000 people can go read a book and come up with 1,000 different truths that they believe they learned and execute them 1,000 different ways. Some people get stuck in this stage and never implement the information learned. If you have never placed a profitable trade or string of profitable trades, then it gets very hard to implement the material in books because you don’t know how to structure a profitable trade, you don’t know what a very profitable trade looks like.

6. Go Back and read the same book a few months or a few years later. This is a big one. I have gone back and reread certain trading books and discovered a wealth of new information that I overlooked or did not understand. This information alone was leaps and bounds more profitable than when I had read the book for the very first time. Why is that so? Because your mindset slowly changes and you eventually transform yourself gradually into a more profitable trader. That makes you more open to information that you may have blocked when you first read a book a long time ago.

Reading a book like “The Market Wizards” and understanding, implementing the concepts in those books is extraordinary difficult if you are stuck in the technical indicator world of trading and do not have an order flow mindset. I remember reading that book years ago when I first started. I read it, it was cool, but that was the end of it. No profit to be found.

When I actually started to attain the order flow mindset, actually placed order flow trades, and knew exactly why my trades were winning and losing, then I reread “The Market Wizards” and a wealth of new information and profits was opened up for me.

When I actually started to attain the order flow mindset, actually placed order flow trades, and knew exactly why my trades were winning and losing, then I reread “The Market Wizards” and a wealth of new information and profits was opened up for me.

Which is why I have the Market Wizard books recommended in the Trading Books Section.

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3 Responses to Should You Read And Study?

Sim June 6, 2011

Hey GRK Really interesting point you make... I have read and read and read so many different books and things... These are great for subconscious arsenal and every now and then a small light bulb pops into one of the many sockets in my brain... Now with that said it's actually TRYING that I find the most difficult... Please let me explain.... Although I acknowledge that I CAN'T define a set trading plan to you in words sometimes I simply disregard this fact and just "have a go" this requires immense concentration and research to try and understand whats really moving the market, and even though I don't go in with a set plan, after doing this research I come out and into the market with some sort of "feel" for the market that I can't describe. I have done this quite a few times and find myself taking trades that have all been different in nature but a lot of them profitable and at quality prices... The strange thing is after I come away I sort of know what I did but my mind seems to require some sort of "system" that I can't give it and so it leaves me feeling (despite the past profitable trades) clueless as to define how to repeat what I did before... (makes no sense I know) Its hard to describe and I sound like a tool but it's such a strange thing... For me it starts with actually making that effort of searching even if I can't exactly define what it is I'm searching for... After this opportunities seem to jump out at me... The crux is that it's hard to believe that I'm onto to anything when I can't define what that thing is. Sometimes I start believing it was just luck... The order flow mindset is so inspiring yet so elusive in this sense that it is so different to a technical approach that if you've been trading technically for so long it's like a complete step out of the comfort zone and a difficult adjustment for the reasons above. All I know is that I can't deny those trades I've taken where things seemed to just fall into to place and I pulled the trigger. The thing is that they've all been for different reasons and its when I try and repeat what I did that things don't work out,,, But yes it all starts with an initial effort.. It would just satisfy my mind if I could define what that was exactly.. (If I made no sense or contribution here just delete my ramblings)

Grkfx June 7, 2011

Hi Sim, Yes there is definitely a certain feel for the market that you can get when you read and assimilate large amounts of information. It can be difficult to describe, but it would very advantageous if you can star to describe. Perhaps try keeping a journal and explaining your thoughts. Because if you can describe it, then you can start systematizing your feel, which is where the next level of profitability occurs. Feel is important, but you always want to try to back that 'feel' of the market with some hard data about why the market will move if you can. Some proof if you can find it that the market will move in your favor. In the beginning I suffered the same thing. You struggle to describe what you see. I wrote something similar below. http://www.forexfactory.com/showthread.php?p=4370902#post4370902 Order Flow mindset used to be inspiring and elusive. But with this website it will be more inspiring, and provide much more clarity.

Sim June 7, 2011

Thanks mate. Really enjoying your articles

Should You Read And Study?

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