The Trader's Pendulum

Want to be successful, have to trade like a business, stop trading like a hobby

Translated from The technical trader's trap chapter.

The Trader's Pendulum book.

This volume is interesting. This chapter is like a summary of the contents of the book. I want to continue searching.

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The author is Ms. Jody Samuels, for example, 2 traders who represent two groups of traders called Technical Junkie with Entrepreneurial traders.

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Fred, a high-salary engineer who was bored with his job, jumped into the stock because he was impressed by the success story of being a trader told him, and he entered the market with hope.

A year later, as a trader, he was still in the process of looking for secret strategies from the gurus who guaranteed to be rich. He studied and studied to find shortcuts, but even today he still has no profit from trading and losses regularly, even though he followed them. This time he felt wrong because he couldn't make enough money to make a living from trading.

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The representative of the other group was Stacey, who started her trading career slowly but steadily. She spent months constructing the system and testing it to prove a strategy, that she thought it would be comfortable in the end of the day, although choosing and testing her strategy was time-consuming and painful, and the result of this kind of effort itself provided her with a steady income supporting her life and that of her family.

At the same time, the freedom of the trader's career is available. It allows her to be a housewife (stay at home mother). If everything works, she will not have to decide to return to work when her child grows up. At this stage of her career, it provides flexibility, intellectual stimulation and good rewards.

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There are no implicit differences between Fred and Stacey in the form of intelligence, level of education, past experience, and personal skills.

They are professionals, and they are young, intelligent, enthusiastic, and eager for success.

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But the difference is the way they treat traders.

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Fred is like a lot of traders attached to Technical trader's trap. These are hobbyist traders or Technical Junkie who, although they have been in the market for a long time, know a lot of tricks, study countless tech courses, trade a lot of daily stocks.

But they are not professionals in trading because they lack a business perspective in trading.

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Stacey became a minority of traders who took trading seriously and meticulously. She was an Entrepreneurial trader who knew what she was doing, was committed to business, planned and planned trading, and was responsible for the trading profession. Most of the successful investors were undoubtedly in this group (see first picture, showing all the differences).

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Traders who are caught in a trap like Fred do not understand that trading has to do the same thing as real business, so they are not distressed in planning a business for trading. They just keep changing the system to find the right one. They never find one that fits their habits and likes. There is nothing systematic.

Thus making him err from using emotion rather than reason to trade. They use their mind to judge what is important in acquiring, cutting losses, and managing capital.

These traders are not interested in sticking to a mentoring coach or offering external accountability, the freedom that the stock player profession has (no fixed hours, no hours, and no daily goals), which encourages them to lack discipline. This independence also causes some people to work too much because they do not design their working life as an activity, will repeat their working hours, will not increase their profits at all, because most of them are exhausted by useless activities.

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But Entrepreneurial traders approach the trading game differently. They treat trading the same way as business. They rely on good planning and operation and management. They really own the business and take the initiative to keep everything in control. Starting with the design of a business plan that enumerates important details that will promote the business, including short-term, long-term goals, good techtics, and tactics that will lead to goals and resource management plans (time and money).

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Entrepreneurial traders are not the only planners, but they also monitor their operations. They often have systems that manipulate the input, processes and expected results as accurately as possible. This makes them successful. When they put the system in the job - they will do it with the utmost discipline without getting emotionally involved.

Beyond anything else, Entrepreneurial traders understand the need to maintain balance in living and working, as well as to keep themselves healthy.