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If I Could Go Back and Tell Myself What I Know Now

Version 3.2 by Drunk Monkey on 2020-07-13 16:10
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  1. Part 1 - Where Would I Focus
  2. Part 2 - How Would I Study
  3. Part 3 - How Would I Practice
  4. Part 4 - How Would I ...

Part 1 - Where Would I Focus

  1. Don't Seek the Approval From Others
    - People will not understand and will impede your progress with negative reinforcement.  No one cares, or will be jealous of what you are trying to do.  Do it for yourself, not for anyone else.
    1. Family
    2. Friends
    3. Co-Workers
    4. Strangers
  2. Learn Risk Management First
    - You will lose money.  That's the only guarantee.
    1. Appreciate % Over $ Gain/Loss
      - the dollar amount doesn't matter as much as the %
    2. Learn to Limit Trade Frequency
      - Don't turn a win into a loss.  The more trades you make, the more losses you will get
    3. Avoid Short Term Into Long Term
      - That's a good way to turn a winner into a loser. Stick to your rules and targets.
    4. Be Content With Enough
      - Like #2, you're going to push your luck and lead to more losses.
  3. Prevent Life Imbalances
    - What's the point if you're ignoring your family?  This profession will suck your life away.
    1. Manage Family Time & Schedule It
      - This should always be first
    2. Keep a Study & Trade Schedule
      - You don't want to become an addicted gambler.  Keep a schedule.
    3. Off Days are OFF Days
      - Stick to it, or you'll lose your family time bit by bit
    4. Be Patient With Your Development
      - Be realistic with your goals, but it takes time.  But it's not worth what you will lose, and that's time you cannot get back regardless of the amount of money you earn
  4. Stop Buying Retail Logic & Tools
    - Retail logic is designed to make you fail, so why buy them?
    1. Stop Wasting Money On Books
      - They don't have the secret.  Good books? Consider (need to check all these references)
      1. For money management, everything from Ralph Vince and Ryan Jones, the do a lot of "optimal f and kelly criterion" (check, not sure what this is) - advanced topic 
      2. "How Many Million Dollars Trading Commodities Last Year" a 70's book from Larry Williams, most of which is still relevant - teaches about smart money and how it influences the market
      3. Trading for A Living by Al * Elder
      4. Market Wizards 1 and 2 just for inspiration
      5. Street Smarts by Linda ?Rash and Larry Conners
      6. Technical Analysis of Financial Markets - John Murphy - Retail Traders bible - do the opposite of this and you will find the charts more fun to watch because of the high degree of failing.
    2. Avoid Looking for Hot Hand Gurus
      - you won't make money doing this.  At best, you'll become codependent instead of a thinking trader
    3. Become Your Own Signal Generator
      - you have to learn, and then trust your own judgement, otherwise you end up stuck looking for someone else to tell you how to trade - and that'll lead to further losses.
    4. Be Willing To Lose... A Lot Early On
      • it's part of the learning and you don't know what you're doing. 
      • It's unavoidable and you'll be wrong a lot. 
      • Don't trade with live funds until you know what you're doing.  You cannot lose money this way. 
      • Losing is normal.  Control them, and over time you'll make more than you'll lose over the long term
      • It's ok to lose, as long as you continue learning to avoid the mistakes you previously made

Part 2 - How Would I Study

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Part 3 - How Would I Practice

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Part 4 - How Would I ...

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