Dividing trading skill

[Kvyat]

Hello
Question for those who do trading on Betfair
How can you divide trading skill at stages?
For example, like dividing driving skill at starting, gear selection, braking, turning, working wiht indicators, traffic laws (which can be divided at lot of stage too) etc
I tried to learn horse pre-race trading and wanted to train stage of them in isolation in order to improve it and be more productive and increase percentage of success trade

[jamesg46]

Hello
Question for those who do trading on Betfair
How can you divide trading skill at stages?
For example, like dividing driving skill at starting, gear selection, braking, turning, working wiht indicators, traffic laws (which can be divided at lot of stage too) etc
I tried to learn horse pre-race trading and wanted to train stage of them in isolation in order to improve it and be more productive and increase percentage of success trade

Flow through what you're doing in your process and break it down into segments such as, Tools (Software) understanding / Market(s) Selection (to fit strategy) / Strategy (core principles) such as staking plan etc / Mindset / Analysis (of self & results)

Tbf I think this has the potential for a wide spectrum of opinion because you can go as deep as your ability let's you or your curiosity will take you. Certainly bite size chunks of logical steps will keep you from getting lost in certain traps.

I look forward to some more thoughts on this.

[eightbo]

Great approach. You'll improve fast this way.

As James said you can really narrow in on a lot of things.

Some traders fear pulling the trigger while others can't stop themselves from clicking. Others can't understand why anyone would have a problem with these things. This will be a journey unique to you. A basic 3-pillar method would be Edge, Money Management, Emotional Awareness

Keep a Journal and identify weak parts of your game and consider how much mileage each aspect will get for you. For example if you notice yourself letting loser's run that's something you'd want to address quickly -- practice cutting losses on small size until its second nature, scale up make sure you can still execute without hesitation then move on to the next thing.

If you're new you will likely have a basket full of things which become obvious to you but just keep plugging away at them 1 by 1 in order of usefulness. Everyone's basket will be full of different things depending on your world view. A good tip is if you get stuck somewhere you might be able to circumvent the problem by trading a different strategy / market type

Some umbrella areas for you to look into as a manual trader in no particular order are:
Risk management (Top.of the pile)
Reading order flow for the markets you trade,
Trade management,
Emotional awareness,
Identifying setups with good Risk/Reward (also v.Important, will make things much easier)
understanding optimal trade sizing (relative to account size first and what the market can take second, your strategy can affect this as well but that'd be an example of something right at the bottom of the basket)
Identifying your strengths and weaknesses as a trader and finding a style of trading which compliments that,
Building a trading plan - a set of rules and guidelines that are in your best interest and aimed at consistent results longer-term

By no means a complete list, gotta go

[Kvyat]

Thank you all
Realizing that there is not correct ways in trading, in the end main target is profit
Take look at my own game is good idea. Maybe this is one way of learning trading skill

I think that most important parts of trading skill is
- Take losses
- Reading liquidity flow
- Reading resistance points
- Market selection

Now I'm watching Peter Webb and other videos on YT and wanted to absorb their way of thinking then go to market and trying repeat it. Btw in the end this will be my own set of rules and parameters that will forming my skill

[Kai]

How can you divide trading skill at stages?
For example, like dividing driving skill at starting, gear selection, braking, turning, working wiht indicators, traffic laws (which can be divided at lot of stage too) etc
I tried to learn horse pre-race trading and wanted to train stage of them in isolation in order to improve it and be more productive and increase percentage of success trade

Hi Kvyat

I like to split trading into 2 major parts, setup and execution. Both are equally important depending on your trading style, but usually the stronger the setup the less important the execution is, and vice versa. In other words, if you find the perfect setup for a trade then it should be easier to execute on it because you have some margin for error (although you could still completely butcher it with terrible execution), but if you're trading a weak setup then your execution generally has to be spot on to get something out of that trade, if that makes sense. Great execution can even salvage a poor trade with a bad setup. Also, if you have godlike executional skills (like order flow reading, scalping etc) then you don't necessarily need too much of a setup (or any at all) because you'd be able to produce a result from most markets regardless.

In the context of prerace setups you could further split them in many ways, one of them could be races with 1 fav, races with 2 favs, races with no favs etc, because obviously they all trade differently. Generally when people talk about an "edge" they're mostly thinking of a particular setup that has a good risk/reward ratio and produces +EV long term, these edges often come in the way of repeating patterns which traders eventually recognize and then try to take advantage of. That being said, execution is vitally important as well and it can be a big edge in itself, it could be broken down in many ways and has many elements to it (including psychological ones), but it mainly breaks down to opening a position, managing that position, and exiting the position. You basically need to be good at all 3, with a clear trading plan in place it's obviously much easier to execute on your preferred trading setup.

Now I'm watching Peter Webb videos on YT and wanted to absorb their way of thinking then go to market and trying repeat it.

Bear in mind that trading can look very easy on Youtube but it's extremely difficult when starting out because you require a large array of skills to trade effectively, as you can see from previous posters as well. You probably won't be aware of it fully when you're watching Peter's videos despite seeing this entire skill set in action.

[ruthlessimon]

Edge, Money Management, Emotional Awareness

That's basically my stance too - atm I've got 3 sheets (pinned up) devoted to those 3 components:

1. Edge: 5W's - Where, what, why, when, how

2. Money management: I've always staked by tick (i.e.a 1 tick loser @ 6.0 & 2.0, will be the same). & because BA doesn't calc it, I need those numbers printed

3. Psychology: A series of facts about my trading. Maximum all time drawdown, worst day ever, best day ever, avg. trades per day, stop-out likelihood etc - Very useful sheet after a couple of nightmare markets

Now that's pretty rigid stuff; maybe too rigid - but I simply have to have that, because my discretion is sooo bad!! Unfortunately for me, I punt I lose

[jamesg46]

Edge, Money Management, Emotional Awareness

That's basically my stance too - atm I've got 3 sheets (pinned up) devoted to those 3 components:

1. Edge: 5W's - Where, what, why, when, how

2. Money management: I've always staked by tick (i.e.a 1 tick loser @ 6.0 & 2.0, will be the same). & because BA doesn't calc it, I need those numbers printed

3. Psychology: A series of facts about my trading. Maximum all time drawdown, worst day ever, best day ever, avg. trades per day, stop-out likelihood etc - Very useful sheet after a couple of nightmare markets

Now that's pretty rigid stuff; maybe too rigid - but I simply have to have that, because my discretion is sooo bad!! Unfortunately for me, I punt I lose

The 5 W's is a great idea! Here is another one, I got it from an interview process a friend of mine had.

S .. Setup (was situation) i changed it.
T .. Tactic
A .. Action
R .. Result

I assume there is many like this & they all will have a positive impact.