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Thursday, June 19, 2014

Support System: Traders’ Lifeline

“I knew that it was a golden opportunity and that I had screwed it up. I swore to learn everything I could to achieve complete mastery in this field [trading].”

There are crucial factors that contribute to the trader’s permanent success in the markets. You probably know some of them; but the one which is mentioned in this article may come as a surprise to you. Without it, you can’t last long in the markets.

A support system is defined as the sources of encouragement, inspiration, and knowledge that enable you to continue your career as a trader in spite of the challenges you come across along the way.  Support system also comes in forms of social trading, signals strategies, funds management, trading rooms, courses/education, forums, books, role models/mentors, etc.

Personally, I need to confess that some of the examples mentioned in the paragraph above were responsible for moving me ahead when I reached a roadblock in my journey as a trader. I was contemplating giving up when I came across some people who’re now my direct and indirect mentors. I came across some books and articles. I came across some generals of the markets and I saw their long-term performances. I came across the secrets of success and the reasons why a large percentage of people find trading difficult. I thought to myself, “Man, if these guys can make it, why can’t I?” I was determined never to give up, and I’ve not regretted that decision.

People who’ve given up trading mayn’t realize the benefits and opportunities they’ve thrown away in ignorance. We can’t get inspired by fatalists.

Indeed, some who’ve given up mightn’t have done so if they’d access to support system or made use of it. While there are some whose mission is to discourage people from trading (since they themselves don’t know, or are unwilling, to know what it takes to be a profitable trader), there are some people whose mission is to encourage people and help them become the best traders they can.

Support system is copious: all around you. Why can’t you make use of it? When you start facing the reality of the markets, there are those who’re ready to make you employ trading principles that ensure your victory. You won’t miss you way.

Psychology is important in trading, and so is support system. They sometimes go hand in hand. Certain traders have been lucky enough to have triumphant pros as their masters who take their hands and lead them to safety on the battlefield. When you’ve someone who’s successful and who’s ready to show you the way, your learning curve would be sped up, providing that you’re willing to be obedient.   

For you to succeed in trading you need support and encouragement – not discouragement – from your folks, mate and buddies. Whether you learned the art of trading by trial and error or you were shown the way from the beginning, this thing matters more than you think. With support system, attainment of success may be less difficult than we imagine.

Actually, our goal is to make average gains that are bigger than average losses over the time; not only to appear like a smart professional or impress people with our knowledge. To achieve this, we make use of rational methodologies that make us survive the vagaries of the markets, since we don’t gamble.

The quote at the beginning of this article is from Bruce Bower. Another quote from him ends the article:

“If you don’t have a consistent methodology, then you will end frustrated with trading. As glib as it sounds, the solution is to trade better. Focus on defining a methodology that works for you and to keep your risk limited… In the process, you will learn to trust your system and your emotions will naturally calm down.”



Learn from the Generals of the Markets: Market Generals



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