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Learning from other traders

  • Writer: Steve
    Steve
  • Mar 18, 2023
  • 2 min read

I believe this quote best sums it up from the Market Wizard's series;



As an aspiring trader, your job is not to copy what someone on Twitter is doing, or to search for a secret sauce. It's to absorb what you can from as many different people as possible. Find people you respect, and who you either know are profitable, or at least appear to be. Try to make sure they are profitable from their trading, and not from selling trading related services!


Watch how a trader talks about the market. Do they presume to know where price will go? Do they use emotive language and get over-excitable at every uptick in price? One major sign to me that someone is a bogus trader is that they only ever commentate on price going up! You're primary benefit as a trader is being able to profit regardless of the direction of the market. You are effectively agnostic to the bull or bear camp.


If you've found a few traders who you respect, and they outline their trade setups, look for the reasons behind the trade. You want to understand why they did what they did. You want the mindset and tools that lead to consistent success, not a signal group. Why are they watching these price levels? Why do they want to see something happen before entering? Under what conditions would they cut the trade and why? How dedicated do they seem? I guarantee you they're taking it more seriously than you are. Traders embody what it means to grind. You have to be obsessed.


I recommend exploring all of the different approaches to operating in the financial markets. On the home page of this site even; Learn about economics... about securities and stock investing... about trading. Expose yourself to the different types of trading. Explore technical analysis, order-flow, and market profile. Last but not least, indeed it's probably #1 on the list... Read as many books as you can. You might hear someone say, "I've never read any books on trading, you have to learn by doing." That's great, but knowledge is power. Read as much as you can, and have a trading account open to apply your knowledge so you can have real-time, real-money feedback.



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