Monday’s video – A Trader’s story….
Charlie shares an email from a trader about their experiences….
Hi this is Charlie giving you Monday’s video.
I’m going to cover a trader’s story today. I know I’ve covered off a few different emails that have come in recently, like the guy who was looking at trading inverted risk/reward.
It’s great as a learning point for all of us when we put these out on to video.
Today, what I want to share is a trader’s story to an extent. This email came in over the weekend while I was away and I think it really encapsulates the true depth of trading.
Trading is not about finding a strategy and then just following that strategy. That is part of the equation, of course, but it’s a lot deeper than that. So I just want to share this one with you.
It says “I know you’re away, but I just wanted to share with you and say thanks for the times over the past two years when you’ve analysed and reassured me along my trading path, and also for the slaps and tough talking that have been administered as and when you’ve felt necessary. I’m now choosing trades based on my analysis which is based on your teaching…
… and nearly always, since late April, only taking trades with a stop at less than 15 pips.”
That’s down to him, that’s just part of his strategy that he feels comfortable with.
“I now feel that I’m developing an approach that may not be perfect but it enables me to take trades in a way that makes me feel like I’m in control of my own destiny.”
This is really where that depth comes in, where you know when a trader is getting it, because this is what he’s saying, he feels that he’s in control, and most traders don’t feel like they’re in control.
But once that light bulb moment comes on then the whole concept of trading feels very different.
He says “yes, you can take my stop out 15 pips Mr Market, but I know which way you’re going to eventually go, with or without me.”
That was really it. That was a trader, to me, who’s got it. The light bulb’s gone on, because what he’s saying there is, even if you stop me out and carry on going down, then I know what you’re up to. Likewise, if you stop me out and then carry on going back up, that’s fine. Even if it’s going to be without me, I know where my analysis is and I know that I can’t always be on board and sometimes you’re going to stop me out, but that’s okay.
To me, what he’s saying there tells me that he’s really getting it.
“ultimately, what you’ve done to my mindset is amazing. Between May and July 2013 I lost £1000 trading by myself and basically self destructing, but since October 2013…” when he came under my wing, he’s not dropped over £200, but his whole approach and ethos to trading today is what is amazing him.
He speechless, unlike me. I don’t know what he’s trying to imply there guys…
“I’ll leave it up to you if you wish to share this with the folks in the room, but you’ve certainly made me feel like I can become some kind of decent trader.”
I’ve already replied to him saying that I think he is there. When you see the light bulb go on like that with a trader, this is not a trader that’s just had a good winning spell, this is someone who has been through the ups and downs and has learned a huge amount and has built that experience that I always talk about, that traders need to develop that experience.
More importantly, he’s finally accepting. He’s accepting of having those losing trades and he’s not concerned about it. He’s saying, fine, Mr Market, you do what you want to do and I’ll just be there for the times when you do allow me onboard.
That’s the sort of depth of knowledge and mindset that all traders, at some point, hope to get.
I was really pleased with that and I thought I’d share that with you today because it’s all these small things. He’s not talking about a strategy, per se – he mentioned his stops but he’s not talking about a single strategy, he’s talking about his whole approach to trading the markets, and it’s that approach which is making him have that overall confidence that he can take those losses.
He has had a very good year overall, but he can take those losses along the way and it just doesn’t affect him anymore. That is the sign of a trader that is finally getting it.
I’ll leave that with you today, have a great one, I’ll see you on Friday.