29 Aug The Honest Secrets to Trading — Connect the dots

The Hon­est Secrets to Trading.

I’m sor­ry but that was just my first time using click­bait to get your atten­tion. But hav­ing said this I am actu­al­ly going to dis­cuss what I think the secret to trad­ing is, you’re just not going to like it. 

I’m going to turn this into a series of posts all relat­ed to what I con­sid­er to be the secrets of trad­ing. Before I dis­close the ‘big’ secret, I’ll let you in on a lit­tle secret first. Pssst… come clos­er…. It’s actu­al­ly not a secret at all. 

I call this series: The Hon­est Secrets to Trad­ing.

And the SECRET is..

Are you ready? Here it goes: Lock your­self up in a room. Think real­ly deeply that you want to be a pro­fes­sion­al trad­er with yacht boats and beau­ti­ful women, or men, sur­round­ing you because you’re an amaz­ing yacht-boat­ing, par­ty-mak­ing, big bucks earn­ing machine. Now just sit there and think real­ly deep. And all will come to you. 

If after a year, still noth­ing has hap­pened? Well, that means you haven’t thought deeply enough. You haven’t expe­ri­enced the lifestyle in your thoughts deeply enough. And it’s your fault. Not because the SECRET doesn’t work. It’s YOU!

Now that I got that out of my system….

DISCLAIMER

Like you, prob­a­bly, I am learn­ing how to trade. I don’t claim to know any­thing. What I do claim is that I will be a suc­cess­ful trad­er. I am con­fi­dent that I will be one because I am putting in the time and effort. If I can’t become one, it’s because the game is rigged and I was nev­er able to be good at it any­way. And basi­cal­ly the bot­tom­line is… It’s nev­er my fault 🙂 

BECAUSE THE GAME IS RIGGED!

Obvi­ous­ly, I don’t believe this.

This series of posts are my per­son­al approach­es to under­stand mar­kets and trad­ing and in the end my path to suc­cess. So if you can be hon­est about your sit­u­a­tion as I can be about mine, we can do this togeth­er and get crack­ing. If ‘they’ can do it… We can. 

After all, you can’t be a good trad­er if you are not com­plete­ly and bru­tal­ly hon­est with your­self.

This series is called ‘The Hon­est Secrets to Trad­ing’. I call it this because Yes, it is a ‘click­bait’ thing. Part­ly. How else can I get your atten­tion amid all these oth­er guys. But I also call it this because I will show you in all hon­esty what my approach to learn­ing this craft is. Because I am look­ing for these secrets as well. Just like you. I am putting in the time. Are you?

Last note. Gen­er­al­ly, you will find a com­mon theme through my arti­cles and that is GOOGLE for your­self. Don’t know a term that I’m talk­ing about? GOOGLE it. I’m not here to tell you all there is about trad­ing. I am here to tell you how I learn and how you can start learn­ing by your­self. I hope you can appre­ci­ate that. 

First Secret to becoming a master trader: Connect the dots.

I am the kind of per­son that won’t believe much unless I’ve expe­ri­ence it myself. In oth­er words, very skep­ti­cal to say the least. Because of this I need to fill my brain with infor­ma­tion and con­nects dots on my own. And just like Mr. Miya­gi said, you need to wax on and wax off first before you can start kick­ing some ass. I’m para­phras­ing here. 

Con­nect the dots

In order to con­nect the dots we need to go out and get those dots first. After I learned the basics in ter­mi­nol­o­gy (arti­cle: boot­strap trad­ing) and got a grasp of what traders on YouTube were talk­ing about, I start­ed look­ing at charts. I looked at charts for hours on and looked for pat­terns. Basi­cal­ly, the same way a kid draws lines by fol­low­ing the dot­ted lines we can look at price action in the same way. When start­ing to look for pat­terns you basi­cal­ly start off look­ing for shapes. I took out the ‘trend line draw­ing tool’ and start­ed draw­ing lines to see if I could make some sense of how prices moved. And SPOILER ALERT, almost imme­di­ate­ly you’ll see that mar­kets move in some­what beau­ti­ful pat­terns and shapes. They can have beau­ti­ful­ly straight lines between sev­er­al peaks or val­leys of price action. Just keep look­ing. Fill your brain with these shapes and try to make sense of them by your­self. See if there’s any log­ic to them.

Chart pat­terns

Now that you have expe­ri­enced for your­self that mar­kets move in cer­tain pat­terns it’s time to read up a bit about them. Check out these sources for more infor­ma­tion on chart patterns:

• https://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns
• http://www.investopedia.com/university/technical/techanalysis8.asp
• https://www.babypips.com/learn/forex/how-to-trade-chart-patterns

Need more infor­ma­tion? Google them. 

Be the best trad­er you can be

My aim with this way of learn­ing is to fill our brains with infor­ma­tion and to con­nect our own dots. I con­nect them in a dif­fer­ent way than you. And that’s a good thing. We are all unique to a cer­tain extent and based on this ‘unique­ness’ we con­nect the dots that, in the end, will let us be the best trad­er we can be.

Thank you

I hope you were able to take away some thing from this read. I am just try­ing to have fun while I’m learn­ing. If you have any ques­tions, tips or just feel like chat­ting, hit me up through the com­ments or send an email. If you like to stay post­ed on new arti­cles please sub­scribe on the right.