This past Sunday, Norman gave us Part 1 of "Becoming a Full Time Trader" and many of you enjoyed it, and helped with other Trader's Blog readers' comments, questions, and needs. We hope you'll enjoy Part 2 of Norman's series just as much. He as also just recorded a few 3 minute audio nuggets about trading discipline, which you can check out here.
Consider the following: if a trader is successful 65% of the time with an average profit of 6% per trade and losing trades are stopped out at 5% loss, then over 100 trades, there would be a cumulative annualized gain of over 26%. Real dollars would, of course, depend on the value of each trade. Another way to look at
it is if a trader averages just a 3% profit margin each month that translates into an annualized 36%.
Many of you know about Norman Hallett from TheDisciplinedTrader.com, and if you don't you should! Today I've asked Norman to bring us some of his wisdom and insight when it comes to being a full time trader. Norman's been a full time trader, then managed a room of full time traders, so he knows what it takes to be one...and be a successful one! Please enjoy his article today and visit TheDisciplinedTrader.com for a special free copy of his book "Taming Risk", enjoy the article.
People fantasize about what it must be like to be a full-time trader. The picture is of a relaxed person sitting in a lounge chair on the foredeck of an expensive yacht docked in Newport Beach or somewhere in the Mediterranean. Armed with a laptop, a cell phone and a large pitcher of rum and chilled grapefruit, the trader (who looks remarkably like a buffed version of you) scans a graph that pops up on the screen. The trader then activates the cell phone and places an order. The cell phone is snapped shut followed by the laptop. The trader stands up, stretches and dives off the side of the yacht into clear warm water. Come to think of it, the yacht is in anchored in a beautiful inlet off Tortola. The water is warmer there.
The implications are clear: easy money, independence and unlimited wealth.
Every time I ask Norman Hallett from TheDisciplinedTrader.com to "give us more" on a previous topic he's previously covered, he always delivers. What do I mean? Well, about a month ago Norman wrote a post discussing "Measuring your Trading Experience" and within the article he touched on an important part of many successful trader's daily routiens...a Trading Journal. So after many requests from readers Norman has come back to give us the BEST methods for writing and MAINTAINING a journal.
Please enjoy the article, to be notified when the upcoming The Disciplined Trader Intensive
Program will be held visit TheDisciplinedTrader.com to learn more, and please comment as much as you can below! We want to hear your journal story...or lack there of!
In The Disciplined Trader Intensive Program, where we train traders of all modalities to be disciplined in their trading, one of the topics we delve into deeply is journaling. You see, journaling is the most effective way to self-evaluate your strengths and weaknesses as a trader, therefore allowing you to target specific problems for correction.
Here are two very popular basic questions about journaling that keep coming up in our Intensive along with answers that I hope will be helpful for your own journaling:
He's a personal friend, great trader, exercise enthusiast, and today Norman Hallett from TheDisciplinedTrader.com is going to bring you into his world a bit and show you exactly how you can measure your trading experience. Norman's the best in this business with regard to discipline and I know he'd want me to mention Norman's latest video and check out his report titled: A Traders Opportunity of a Generation. Big claims yes...but the report delivers trust me. He will be expecting comments, so please don't let him down!
On your end... You "gear up" before you get started by having your morning coffee, and if your smart, maybe doing a little cardio. Then you sit down and start looking at the charts, where you assess the markets you'll be dealing with.
On the market's end... well, it's been, in most cases, trading all night, tempting you to figure out where it will be going next, based on its last hour's movement, last day's, and last month's movements.
As the referee used to yell when I was on the 'mat' in high school facing my opponent...