The Learning Curve
I had traded for a while on a part-time basis before I walked into my first day trading office at Protrader. I was amazed how much money people were making in there! Two guys my age on that day had each cleared $40k for the day in profits. WOW – how soon can I get up and running?!
I started out looking over a few different traders’ shoulders, watching their moves, mistakes, and profitable trades play out. I learned a lot for several weeks, mostly from their mistakes. I was emotionally detached from their trades, and I came to realize that my situation allowed me to think more clearly than they did in the heat of their battle.
After the first few weeks, my learning rate slowed. The next few months, I continued to learn, but it wasn’t brand-new to me anymore. I was getting a feel for things and able to recognize many conditions which I would have previously overlooked.
It’s now been over 5 years since that first day I walked into the Protrader office, and I’m still learning! The lessons are different now, and the market is my teacher rather than another trader. I’m still learning though, and I’m still in the game (there are 2 of us still trading out of about 35 in that office). I’ve learned a lot about the market and myself since that first day.
The learning curve for trading doesn’t happen overnight! Perhaps you know yourself very well but have some learning to do about the market and trading. Maybe you understand how to trade, but have some learning to do about yourself, your tendencies, and how to deal with them effectively. As you progress down the timeline as a trader, be patient and make learning a priority!
Check out the trading education page, where you’ll find links to trading topics of all kinds to help you in your quest for profits!
Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com
Buck Woodford | Dec 23, 2005 | Reply
couldn’t agree more. i started trading solo in april 2003, and thought i’d be living in a 1/2 million $$ house by the end of the year.
here i am 2.5 years later.. slightly less financially wealthy but a hell of a lot smarter about tradng, mainly thru “hard knocks” education. haven’t made a killing just yet.. but thinking i know how, finally.
to summarize.. i feel real comfortable that i can produce 20-30% annual returns with my current style. however this isn’t enough to make a nice living just on my capital stake. i am starting an investment advisory firm to take on rich clients here in central Ky with hedge-fund style arrangements.. 1 & 20.
email me if you’d like to see my spreadsheet of how this will work out given various assets under mgmt and % return scenarios.
my new plan will be a lot more lucrative and viable than attempting to trade my meager $50k stake to crank out triple digit annual returns.. while certainly over-trading.. just to live reasonably.
if i can keep anyone from deluding themself, as i did early on, then this message serves its purpose. triple digit returns are an anomaly.. if you must produce such results to be “successful”, you’ve gotta change some plans.