Trade The Journey

Trade The Journey

Short Reflections Part Two

As I delve into the complexity of trading, I find a paradox.

 

Like most things in life, the opposite side of the coin turns first. For example, to lose weight, you have to eat often.

It seems more likely that you’d lose weight by limiting the number of meals per day. I can attest that’s not true. When you skip meals, you skip the nourishment needed to continue functioning at a high level. You miss the opportunity to revive and revitalize yourself.

Lately, I’ve been exploring the thoughts and concepts of Van Tharp and his idea of the Super Trader. Super Trader is the name of the book and programs Van Tharp offers on his website. Super Traders exist but not in the form you may think.

 

I’m sure you would imagine someone trading the markets consistently encountering winners and shunning losses. They are tripling their trades with each successful exit. This is not the prototype Van Tharp has discovered the Super Trader to be although successful exits are part of it.

 

The Super Trader has a basis of skill not purely fundamental or technical but psychological.

A state of mind that can encourage you to embrace losses and wins as a changing probability instead of a permanent event. This means releasing the need to be right.

 

How many lives has the “need to be right” destroyed? Not only in trading but in life as well.

 

Now trying to arrive at this level is the tricky part because it requires some work to peel back the layers inward. This search inward is the type of work people avoid.

 

But is it worth it?

Is discovering your natural trading style worth it?

 

The way the market moves is out of your control. What happens to you daily is in reality out of your control. How someone chooses to respond and react to you is out of your control.

 

The illusion of control. What do we have control of?

 


Our perspective – how we see things. That’s about it.

 

I strongly suggest you take Van Tharp’s test that classifies your trader type. This test can give you a general idea of the trading your style complements.

 

My Trader Type:

 

Independent Trader Type As a Trader… if the markets interest you, you’ll probably endeavor to develop a logical explanation for how they work. This is because you love theoretical ideas and abstract concepts (in fact, much more so than people interactions). This can be great for trading success if you don’t get too theoretical.

 

Once you peel back the layers of words and concepts, the actions you take are a direct result of your psychology.

 

When beginning on this winding path of discovery, I initially thought about the success. I then begin learning and thinking about the concepts once I understood the words. As I gained some understanding of how the markets worked, I was pointed in the direction of my reflection.

 

What do “I” have to do with learning about the markets?

The markets are on the screen but who is looking at the screen deciphering its clues?

 

Is this the time to make an exit? Who’s buying or selling the stock? What are the intentions of the buyer/seller? What should I do?

 

I’m now beginning to understand that you don’t trade the markets you trade your concepts, beliefs, and perspectives.

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