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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