So you want bigger trading profits eh? Don’t we all. The question is are you ready to do what is necessary? You can increase your skills in many different ways. Increase your skills to extract more and more profit from the markets. There are all sorts of new skills that you can learn. You can choose to learn technical analysis skills. You can choose to learn price action skills. You can choose to learn how to program and become a quant. These questions can be the difference between squeaking out a trading profit and being on the road to a million dollars.
My personal preference is to gain skills about the things which do not appear on the chart. Learn about order flow, liquidity, stops, market sentiment, market sensitivity, news, global macro, market positioning, market expectations.
There are many different ways to increase your trading profits.
One of the best ways is to increase your winrate of your system. That requires you to place better trades. Placing more higher probability trades. But, usually in order to do so, you need to develop some order flow skills. You need to discover better trading setups. And these trading setups don’t have anything to do with finding the perfect technical indicator or chart pattern setup. They all have to do with the information outside of the chart.
If you ever want to know when to risk a large amount on a certain trade, and risk a small amount on other trades, you have to learn order flow trading. It is the only way I have discovered. Knowing when to go for the jugular almost always, invariably requires order flow analysis.
Some people want massive trading profit, without having done the work to know how to harness the market volatility.
Other people claim that they don’t have time to learn order flow trading. Last time I checked we all have 24 hours in a day. We all have the same amount of time. It is what we do with it that counts. When I choose to listen to a trading audio book on my lunch break, while you talk to your friends about american idol, we reveal much. When I choose to record the market sentiment every day, while you decide just to take a quick peek at your charts without studying the information outside of the charts, we reveal much. When I choose to read a few more articles every day to discover a new inefficiency or order flow generator, while you decide to browse the forums for some new magic systems, we reveal much.
When I choose to do the research to discover when a global macro event is going to occur, while you just look at your charts, find a technical indicator divergence, place a trade, then go watch an episode of Deal or No Deal, we reveal much.
There is all this volatility around you. All this money flowing around. All these order flow generators every day. It is all about whether you want to acquire the skills to dip into the opportunity flow and extract your profit.
For many varied reasons however, most people do not take the time necessary to acquire the knowledge nor to apply the new order flow knowledge they have accumulated. So many aspiring traders keep looking for the shiny new system, or indicator. They lust for the new. And that continued lust for the new systems, usually turns into massive time spent on systems which do not generate order flow and do not move the market.
There is an old Chinese proverb:
“Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.”
It is a decent quote. There is a better one that I have discovered over the years. It is an addition to the above quote. I don’t remember who said it but here it is:
Teach a man to fish and require that he go fish, then you feed him for a lifetime.
You see it is not enough to teach a man to fish. Just teaching alone is not enough to feed someone for a lifetime. The person you teach needs to actually go out there and fish in order to catch the fish and feed himself for a lifetime.
A fisherman can be taught masterfully, but if he does not get out there and go fish, then he is going to starve.
Similarly, some traders may have learned order flow, but they are not going fishing for reasons which are varied. Usually it is some sort of fear that they may not be acknowledging.
Yes other traders, fall into a worse category where they know order flow trading, but for some reason choose to go back to the previous systems/methodology that they used. Part of the reason is that they keep lusting for the new system, and they get their urges fulfilled on the various systems forums.