Gregor’s guide to trading success

He agreed… so here it is, word for word. Enjoy.
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​What’s the secret sauce?
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​To the newer traders and members:
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Can we just take a moment to appreciate how difficult it is, what we’re trying to do here. If you knew nothing about trading, and someone would come to you and say…
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​“You could have a business that has no customers, no boss, no employees (if you wish so), no travel requirements, virtually no physical assets, but one that is scalable in a way that you could earn executive-level salaries & beyond at less than half the tax-rate, working from anywhere in the world, with as many hours in the day as you please, at a time of day or month of your choosing. And the task could be your passion.”
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​If you knew nothing about trading, you’d be saying that this comes close to a jackpot lottery win. Isn’t it?
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Then, the person would say “Do you think this sort of thing will come easy to you, it will just fall into your lap so to speak?”
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​It’s the single-hardest-thing in the world psychologically.
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No business smoothing-skill you’ve learnt in corporations will prepare you for it.
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No common-sense skill you’ve learnt in school or vocational training and no actual useful skill in the workplace or craftsmanship would ever come close to suffice.
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​Here is my summary secret sauce from 10 years of chipping away.
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​I believe these hold true somehow whether you’re a swing-trader, day-trader, currency/commodity/index – trader or whatever. Happy to debate.
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In your chosen timeframe, if the market goes up, go long. If the market goes down, go short.
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Or at least don’t go against it.
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Same holds true for counter-trend traders (“your chosen time-horizon”).
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​Don’t f-ck around trying to be smart.
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​Do the 20-trades exercise, where you stick to whatever you are doing, including your initial position-size, for at least 20 trades.
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Mark Douglas presented a similar exercise a long time ago.
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See YouTube. Here we go:
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A) Got a profit at the end of it?
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Congrats. You’re a trader, now size-up at your pace with a sizing-plan.
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B) Got a loss? Keep finding your edge. Repeat.
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Remember, you’ll never know what happens next, no matter how careful your technical analysis.
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Embrace uncertainty and the fact that it might take you 20-30 (or more) trades to break-even. Keep at it.
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Can’t wait for sizing-up your position slowly like in A)?
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​Want to add size to a trade? —> Don’t size-in unless you’re in a winner already.
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If you use profit-stops or break-even stops or nothing is up to you.
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Just don’t do that thing where you add to losers.
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Tom H preaches it, but it’s just common-sense.
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Want to be 10 Euros or Pounds or Dollars (or CFDs) a point in a 600 Dow-drop? Go short small. Move your stop. Add a position. Repeat.
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Before you know it you’re in 10 pounds a point and it goes another 300.
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Congrats.
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​DONT ADD TO ANY LOSING TRADE and NEVER GO BEYOND INITIAL SIZE per your sizing plan!
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​Forget the idea of taking profits perfectly.
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Whether you use targets or trend-following like me, it doesn’t matter. You made 10 points a day on average adjusted for size?
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Congrats. Nothing more needed.
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World’s your Oyster. Just keep improving. Don’t be greedy.
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Despite this, learn everything you can about markets.
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I went to Frankfurt to talk to the Xetra people to learn about iceberg-orders and how orders get routed, and spoke to Stuttgart EUWAX to learn how an order-book works.
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I soaked-up information like a sponge.
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Read every book that appeals to you and watch each YouTube video you find interesting or relevant about trading, even if it’s about f-cking South Korean pottery for Kimchi.
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The principles are the same.
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It’ll move the needle too to take you to the level of excellence.
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Then, when you get the “Trading doesn’t work anyway.” comment from anyone, you shall smile and say “Yes it doesn’t. And it never will. For you.”
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Welcome to MM.
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Well said Gregor, well said.