Experienced traders, who have reached the level of mastery, trade based on factors that they are not even conscious of any more. They have internalized their knowledge of the market to the extent that much of their expertise lies in their unconscious. Thus, unlike the amateur, their intuition is to be trusted. This knowledge, developed through massive experience and putting in their “10,000 hours” is so internalized that they cannot even express it consciously to teach others or program into an algorithmic formula to be replicated through a trading computer. Quote Dr B Burns
I am certainly no “master trader” yet – even after coming up to nearly 9 years of purely Forex trading. I did not go full time until my fourth year and I worked out my “journey” as follows -
Years 1 and 2 – part time – approx 15 hrs a week over 44* weeks – 660 hrs pa
Year 3 – part time / but concentrating more to going full time - 1100 hrs pa
Year 4 -6 – Full time but still winding down other businesses - 1450 hr pa
Year 7 -9 – Full time and spending between 35-50 hrs per wk - 1850 hrs pa
* taken out holidays and time off
So my total hrs to date – watching chart movements and actual trading as now reached approximately – 12200 hrs
Please forget counting back testing etc etc – It just not the same as trying to trade “live” – its just so easy in hindsight ;-)
I did not start to become fairly consistent and making money to year 3 – ie by about 2000 hrs of watching and understanding market movement.
By year 5 – I was Full Time and making money – but not day in day out – I had still not really found my “edge” to be consistent etc
By Year 6 and 7 I had moved up too quickly and hit a big psychological problem of trading at over £100 per pip and compounding too quickly. My “wall” was approximately £150 per pip or approx 20 full lots. Year 7 was a step backwards to regain confidence and to enjoy trading rather than it stressing me out.
Today – I am still learning as I only rate myself as average on swings and longer term trades. As ForeXmosgate members know from following my intraday trades – I do not believe in having even losing days – even though I might get a few intraday trades wrong. Losing weeks to me are like several years ago – and losing months – 5yrs+ ago. I think they now know why and hopefully might have worked out what I am doing as my overall method or strategy.
My trading style is fairly unusual – I basically micro manage – and adjust to every trading day and so one day I might only take 8 trades and have a fantastic day and the 2 days later I take 18 trades and only get an average result.
I think many traders have no plans to go full time and just want to complement their existing income – which is fine - so to reach the 10K hrs might take over 2 decades. Yes – you can make profits by year 1 or 2 – but you will have losing weeks and even months – that really can be psychologically draining and that why so many do give up.
If you have only been trading 3 or 6+ months and you are making money - please accept its “beginners luck” and I sincerely hope it does stay with you and when you do have the bad week or month – you carry on knowing you can get there – but it will be over time.
Remember Guys – how long does it take to become a qualified Doctor or Lawyer or say an Electrical Engineer etc etc. 3 -5 -7 yrs plus
Many studies now reckon 80% of new traders are drawn to Forex trading simply because its has been “painted” as a quick road to riches ;-)
I blame the industry and the market makers as they have allowed this perception to grow knowing the “sharks” will come on board and pull in more new traders expecting to earn more than they have ever achieved in their whole life in the first year.
I would love to hear your trading Journeys (so far). We will all be different and so some will be profitable after year 1 - others will still be “so so” after 3 or 5 years?
It is a journey believe me – but it can be such a great one if you can keep going
Have a great September and look forward to seeing you in the "gate" group