@syzygy
Hi Syz
From what I read in your post, there are 4-5 or so questions and some of the questions intertwine.
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Ok so
“how to we properly process all the information” The context of my response is that as traders were are constantly bombarded with information from a myriad of sources. For example you may turn on your computer, log in to your trading accounts and platforms, open some emails, read some HC posts, look at your current trading positions, create some posts in HC, receive and send messages from your phone, scan the Fin Review etc. The takeaway here is that as traders if we are not disciplined to choose whom, what and when we will access both information and technology devices, from those places I mentioned above, it can become impossible to actually “process all of the information” as you asked in your first question. It is a trap many fall into. Time is so precious. We can never ever get today back again, and what we did or did not do during its 24 hours.
Moving along, I don’t think we that we need to undertake research into our own brains capacity to work through a specific amount of information at once. Therefore lets just agree that there is a limit, and we need to be mindful of that. Some even will debate the gender difference here, however that is a no go territory for me.
So imo it all comes down to your pre-trading routine for the day. One of the better places to discover suggestions for a pre-morning routine can be found here -
http://thetradingedge.org/building-the-perfect-pre-market-routine/ They have some great ideas. PS None of the places mentioned in this post do I have any affiliation with. Google others, find what you like, make it yours and own it.
Anway in short it all comes down to your own discipline. If you have no pre-market routine that is documented that I would suggest that you create one, so that you are not overloaded with a whole bunch of “information” that is thrown our way once our computers, mobiles, tablets, Ipads are turned on, and this includes pop-ups as well like messages on Instagram, Facebook, Twitter etc, let alone the personal stuff such as School Drop offs, Walk the Dog, Go for a morning Fish, the potential interruptions are endless.
Now the most important mantra that I work towards is to just dumb it down or to use the cliché KISS. Your pre-market routine, whether you are working at another job, or are fulltime trader, or part-time dad or mum or whomever, all of us have other roles that we need to also fulfil. So we need to maximise the time we have as there are only so many hours in the day. In short, a handwritten piece of paper will do the job, with say 5 of whatever you think are the most important pieces of trading behaviour/tasks, and make sure that it is always next to you when you are on your trading platforms.
Trading can feel like a lonely place at times, especially in times of drawdowns.
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So in short, work out what is it that you want to process or think about or discover? Once you know what these topics are, you can then break it down from there and get back on track.
Re “organisational methodology” that is a big question, and some of it ties into your first question.
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Ok this part is probably the most important because all of the decisions made here and all of the decisions that are not made here will directly correlate to your own trading results. Really to cut to the chase, if you want to stay in business and then grow your trading business you must have your own house in order. “Growing lists, lists of stocks, a few notes, pages that multiply” it is time that they need a makeover.
For the record however, what you describe above is how many traders operate, and I admire you for being frank. I think we need to feel safe in the STT, and know that any question that is posted will be treated with respect;@Freehold and other senior members whom you know are, as long as the question or post is written in a respectful way. It is telling that many of the top traders hang in the STT imo.
So I ask, are there traders with that uncanny knack, that ability to somehow just pull it off without a couple of plans and strategies? Answer = probably. However I would say that they are in the minority and blow up too many trading accounts.
@mouse is spot in when he talks about doing the time in the markets, looking at various trading strategies etc. The more time that is spent trading real money and real stocks is the best teacher. There are only so many books and videos to watch before the time has come to take ones trading to another level, and that is the part where the makeover arrives, the sleeves rolled up and the head down.
I really get what you talk about and know firsthand how frustrating it is when you look back at your “A4 spiral book” and see a couple of stock codes that were never followed up, and have gone on to achieve major gains. I remember that feeling myself all to well, and boy did I berate myself. However this can act as a Catalyst. You have clearly identified where and what you need to work on, so the how to is what you are interested in.
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Perhaps run your eyes again over the Short Term Knowledge Library 1 and 2 as I am sure there are some articles that touch on this area. Syz we are all different with different personalities. This means that what works for Trader A does not work for Trader B as they interact within the markets differently.
Knowledge Library 1.0
http://hotcopper.com.au/threads/sho...y-no-unauthorised-posts.2634026/#.VlHu6o9OJaQ
Knowledge Library 2.0(STILL UNDER CONSTRUCTION HOWEVER ALREADY HAS MANY POSTS)
https://hotcopper.com.au/threads/short-term-knowledge-library-2-0-this-thread-is-read-only-no-unauthorised-posts.3141533/
From listening to your post I am going to take a punt and guess that you are one of the traders that like to be organised. In the end it doesn’t matter anyway if you are Trader A or B, you must be organised in one way shape or form that at least covers the basics (which I will outline) Many bloggers bang on about the benefits of these long, detailed trading plans. I look at them and think wow, by the time that they have filled in those forms, the trade would have already come and gone.
So as we are all different, you need to nail down what type of trader that your personality suits? Once you have done this, then you make a plan that is suited to your trading style. For example one could look as simple as this:
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It is significant that you are asking all of the right questions, as it tells the story of a trader whom wants to take their own success to a higher level. With commitment, some blood, sweat and hopefully no tears, you can do it. Never give up. In fact I remember reading somewhere that it is those people whom are just about to finally “get it” ie become successful” that drop off in the last part of the learning, just prior to when the penny finally drops. To be successful in trading one needs to correct recipe.
Next, I am surprised and baffled at the lack of time that is devoted to trading psychology. It is what goes on between the ears that has the greatest influence. In my opinion, successful traders are aware of their own bias, trading fears, emotions, thoughts etc and through the use of their daily trading reflection journals are able to monitor and correct parts of it.
In fact the topic is so big that I really recommend that you Google it ie Trading Psychology and learn as much as you can. Trading Psychology was for many years not recognised as much as it is now, for its importance. Today, there is more information on this part of trading than most. Why? Because it is probably about the most significant trait of being a successful trader. So the frustrations, expressions etc that you shared are completely normal. Many traders would identify with your comments and sentiments. Good on you for telling it as it is, I truly admire that.
Invest in yourself. Spend the time at night whilst others sleep honing your craft. Be inquisitive, ask, watch, read. Without being able to master ones own trading thoughts, beliefs, bias, in other words ones own traders ‘psychology’ one will fail as this is the reason why so many people do not make it. I cannot understate its importance. Create a Word Doc and add in all of the information you come across about the topic, so that it becomes your own kind of book so to speak, in other words, it is full of the information that is important and relevant to you.
So Syz I hope this is a good starting point. Your questions are important and you are on the right track. Crikey I am no guru. I am just like everyone else in the STT team, one of many of the guys n girls that is happy to help out a peer, knowing that others go through exactly the same kind of events as any trader does.
That is it for the moment. You are at an important juncture point in your own trading journey. You will do it if you want it bad enough that you are prepared to miss going out with the boys for a night as you are studying. Afterall if trading was easy, everyone of us would have retired in some form by now.
In summing up, we must protect what we have in the STT, because it is one weapon and edge that we have over the Trading Houses ie Our collective knowledge contained in the STT posts that we share amongst eachother.
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Cheers
GF
PS (BY THE WAY THAT HANDWRITTEN NOTE ABOVE COMES DIRECTLY FROM ONE OF THE WORLDS CURRENT GREATEST TRADERS)
