An economics textbook.
A college course on economics, etc.
If you really desire to be a trader, do you need any of them?
Nah. You don’t.
There are some people that believe they are going to get into trading by studying intensely an economic textbook. Or by taking a college class, etc. It’s certainly a perspective. It is one way of looking at things. But it’s not the most effective way.
When I took a college course on such a subject, they taught me the dividend discount model for stocks. That is very very different from my current approach of analyzing market expectations, industry trends, sentiment and global macro. They are two completely different worlds.
One college professor I talked to, said that the way to figure out future price movement was to look at the way the option market was tilting. That was many years ago. Which is not a good way. It doesn’t really tell much. If there is a big bull market, there can be a lot of people buying call options.
Well, so what? What does that say about what the market is going to do over the next few weeks or months? Just because a bunch of market participants are clamoring to buy call options today, doesn’t necessarily mean the financial instrument is going to keep on rallying. So that professor was not “in tune” with the real drivers of the price that you see on the screen. I had to go on my journey and find the truth.
Every hear of some people in the news media making shocking predictions who don’t really know what they are talking about?
Ever have a situation where a friend or acquaintance has read some article somewhere and suddenly believes they are a guru about the Federal Reserve and interest rates?
They are called armchair economists. They read something, and start expounding their views to people and the media. In an effort to sell their distorted views, and feed their own ego. As a general rule they are peddlers in misinformation and mediocrity. You don’t want to be that. If you are an armchair economist, you are not extracting nowhere near maximum value from the market action and your life.
I used to be in this category in my first year or two. I thought I knew how the economy worked, etc.
However, deep down inside I knew I didn’t want to stay like that. I knew that there was a world of difference between an armchair economist and someone who really knew what moved the market and actually traded on it for profit.
I wanted to see things in the market that other people did not see, and risk my own money on that insight, on that advantage. And when you do get to that level, even if you don’t yet have a million dollars, it is an incredibly satisfying physical and intellectual moment in your life. Where you can take in information, see opportunities that others do not see, place a bet and make a profit.
It is one of the greatest games and frontiers in life.
Top Two Traders & Self Development
Take two examples of top traders, that are still trading today:
First, Paul Tudor Jones. He got his undergraduate degree from UVA, and eventually applied to Harvard Business School. He was accepted and was ready to go, when a great and grand revelation occurred to him:
“this is crazy, because for what I’m doing here, they’re not going to teach me anything. This skill set is not something that they teach in business school.”
And so, he did not attend Harvard, and instead started his hedge fund which has gone well to this day over three decades later.
Another top trader, Stanley Druckenmiller, graduated from Bowdoin College. He began graduate school, but as he said it in the book New Market Wizards:
“I found the program overly quantitative and theoretical, with little emphasis on real-life applications. I was very disappointed and dropped out in the second semester.”
He went on a different journey that eventually got him the job as Chief Investment Officer of George Soros’s hedge fund for over 10 years.
Notice the common thread of avoiding too much academic education and focusing on building themselves up and advancing their trading skills, via other means.
They wanted REAL LIFE applications. As they intuitively knew that real life applications = BIG MONEY.
You too, can take a similar path. With the explosion of information flow with the digital age, mobile, etc, more information about so many topics is available in more places, than any time in the history of the world.
So someone who wants to be a trader, they trade. They analyze today’s market action and information flow and if they see an opportunity, they place a trade with a small amount of risk. They don’t have to risk 5% or 10%. They can risk smaller amounts of 0.50% and 1.00%.
That is what they do: They analyze and if they see something they trade. And if they don’t see anything, they get busy working on some other aspect of their lives, or figuring out how to work smarter the next day and the next week and the next year. That’s just what they do. Traders analyze and trade.
Traders realize the best day is TODAY. Any analysis of historical trades, etc, this can generally wait for the non active market hours or the weekend. But the best day is TODAY. Best day to search for a big global macro move is TODAY. Best day to search for a trend is TODAY.
Economic textbooks, college courses, etc, they all tend to be too theoretical. They struggle to make the link to the current market action and impact on prices.
And make no mistake about it, that is what you are searching for: The missing link that enables you to finally, forever and ever, understand what economic forces and principles actually really move the market and how you can know that for sure. This missing link has to be formed with proper trading habits.
That is what I was searching for – that missing link. I found it with order flow trading and one very powerful technique that has only been revealed inside the Order Flow Mastery Course. It is the foundation of so much power, knowledge, and ability to “read between the lines” in the information flow and market action. It can be yours too.
What A Trader Really Needs
So if you don’t need an economic textbook, or college course, then what do you need?
You need desire, and discipline.
You need a philosophy about the way the market really moves and why it does so.
You need a crash course in Global Macro Order Flow Economics. An economy is made up of a large number of people. These people are living, breathing organisms. So the economy is a living, breathing organism. Every day there can be data released, and changes in various economic indicators such as unemployment, inflation, GDP, etc. You require the knowledge of only those things that really matter – a crash course of sorts. This is TRUE ECONOMICS of what really moves the market, stripped of all the fluff and everything that isn’t true and that you do not need to know. I call it a crash course in global macro order flow economics. This is available, plus much more, in the Order Flow Mastery Course.
And you need daily habits that you can apply to build that skill and compound it over several weeks. The reason being, this skill stays with you for your whole life. The greatest asset you can have is your ability to produce. Your skill set is the greatest asset you have. So you can analyze information, trade, find an opportunity and make money. You don’t have to wait for some signal service to feed you. You have become the market wizard yourself.
Because, if for whatever reason, you aren’t making a profit today, the very next best thing, is to build skill, understanding, and mastery, so that you do make trading profits over the coming weeks.
Always remember that.
This skill set, this mindset, this philosophy, this belief system, that a successful trader requires, is not something easily found in an academic textbook or college course. It comes from something, a deep desire inside of you, and plugging yourself into a constant stream of books, home study courses, information, knowledge, that is of higher accuracy for profit in the speculative arts.
Where can you find this philosophy, inspiration, and daily habits that actually work? It’s all in the Mastery Course, plus so much more. Click Here To Get Started.