If you didn’t know this, or this is the first time you’re reading one of my blogs, everything I compose is based on real life experience. Generally, I’m inspired to write blogs as more of a report on things that are going on or have happened in the past. This blog is no different. With that I’m going to discuss the learning curve with trading. Regrettably, there are too many people that come into trading thinking it’s going to be “easy” and that they’re going to “get rich” with ease and speed. I’m sorry to be the barer of bad news but that is simply NOT the case. There are people that have made substantial amounts of money in a brief time period but this is typically rare. A pal of mine, here in Vancouver BC, did manage to turn $1500 into over 1.6M in 5 months trading commodities. I know this is truth and not fiction because I saw his actual trading record. He himself said that his meteoric rise to wealth should not be considered the norm and that the trading learning curve should be, not only respected but embraced! I couldn’t agree more with that statement.
The learning curve is of absolute importance. It’s the stage where you earn your stripes. Its were you’re battle tested in real time. It is were you’ll be handed your hat if you don’t come correct. And with all the times you’re going to get smacked by Mother Market you need to get back up, review, tighten up and get back to it. The learning curve is a very personal thing. It's not something that you should be comparing to someone else. It’s yours and yours only. Embrace it and respect it! When you are heading through this messy part of your career you must remember to stay nimble and focused. For this is the process that will either make or break you. I’m simply writing this to remind you that, whether you want to admit it or not, the learning curve never stops. I would personally suggest, strongly, that you commit to the path of continuous learning and gravitate to the understanding that as long as you’re a market Participant you are also a student.
I can tell you that on my journey there have been concepts that I grasped with no challenges. Certain things were just plain and simple for me. But there were things that stumped me. Having said that, I remind myself that this is MY trading journey. There is no one else that I should be comparing myself to on this path of Mastery. I bet that even the most successful and rich, battle tested vet traders out there still has occasional challenges with the markets. I’m sure that they too struggle with their learning curve…as it never stops.
"People fail because they give up too soon"
Every trader needs a strategy and a general approach to trading. Something that has been back tested and proven. Whether you’ve developed it or have had someone mentor/coach you on it, you need strategy. Even when your strategy is in place you’re still going to be learning aspects of the market. Just having a solid strategy isn’t enough. You must be psychologically ready for what’s hiding behind every corner. You’re going to have to learn how to emotionally disconnect from your trading capital and learn how to play in the sandbox with Market Makers and Algos, it’s all part of the process. It’s all part of the learning curve. Please don’t get deterred by these occupational hazards. They’re all playing the same game as you. Just remember this blog in your darkest hour. Remember that everything that happens to us on the trading playing field is meant to teach us. The learning curve is long and nerve testing. Stay focused and stay learning. Step back and reassess if need be. Just don’t throw in the towel before you achieve consistency and success as a trader. People fail because they give up too soon so remember that failure serves us with the best learning lessons!