Regardless of ability, I feel there is something to learn from nearly everyone out there. For that reason, I've compiled my top tips for anyone just starting out, from my own perspective. You won't find "edges" here but you will find simple tips that I believe can help those that haven't considered them before. Please also bare in mind this is from the perspective of a pre-off horse racing "trader" (and I use that word lightly).
1. Let's get this one out of the way first. EDGES! Stop obsessing about edges. Concentrate on your ability to read the market instead of trying to find that golden egg. Remember that an edge is just that, having an edge over others in the market. Considering that the market is essentially full of a lot of muppets I don't believe this is all that difficult. What is difficult is executing and managing your position effectively.
2. Pick a sport! Trading is a VAST subject to cover. One that is forever evolving. It can be daunting and exciting at the same time but it is important that you put your time to good use. I was most interested in horse racing so that is naturally what I steered towards. Like many, I messed about with greyhounds, back to lays etc but I soon realised that I was spinning too many plates. Pick a type of trading and dedicate yourself to learning it before even thinking about anything else. This will serve you much better in the long run and speed up your progress to profitability.
3. Buddy up! At this stage, we're all in it together. The stuff we are learning is no secret so find like minded traders, from people better than you right down to people looking to open their first trade. Help these people and receive help from them. Seeing their progress and showing your own will spur you on, as well as making you feel better when they have had just as shit of a day as you. Being honest with your buddies will put you in a much better position for them to help you. Which leads me nicely to...
4. Learn by teaching! The basics are and important basis from which to build your trading on. By teaching these basics you are solidifying them in your consciousness. The same way writing something down always seems to help you remember. I have had long sessions teaching people how to trade and come up with several of my own revelations along the way. It's a win win situation for both parties.
5. Be a stalker! (Sorry Peter) Find inspiration from trading "celebrities" (but be careful!). Strive to be like them while being realistic of your own abilities. If possible, try to keep in touch with them and absorb any information they have to offer. They are better than you. It is common sense to listen to what they have to say.
6. Be self aware! Being aware of your strengths and weaknesses is huge. I've seen people make the same mistake over and over again. Some accept responsibility for their results where others will blame the market by telling themselves things like "if the market hadn't done that" etc. The fact is, the market doesn't give a shit about your opinion as yours is only one of many that forms it. The sooner you accept that the better. Be brutally honest with yourself but don't beat yourself up. Remember you're in this for the long haul and it was never going to be easy. Focus on progression instead of results.
7. Be a loser! Accept that everyone loses. It's part and parcel of trading. Concentrate on improving/reducing your losses. By doing this, the profit will follow. Keep notes of your days trading and when you lose, ask yourself if it was your fault and how it could have been avoided. As above, don't beat yourself up about losses, take them and move on to the next trade with a fresh approach regardless of past performance. Keeping notes of the types of races you suck at (in detail, prices/field size etc) will also allow you to either reduce stakes for these races or cut them out altogether, thus improving long term profitability.
8. Be confident! (without being reckless). This is easier said than done and unfortunately only comes with time. Accept that like the market, your results will ebb and flow and very rarely be a straight line. Confidence in your edge over the rest of the participants in the market will aid you when taking a loss but as I said before, some things can only be learnt with time.
9. Be prepared! But not too prepared... A mistake I have made several times now is over preparation for a days trading. If you're like me, you have other responsibilities in life and trading time is limited. Making the most of this time is extremely important to you which makes you want everything to be perfect. As an example. On a Sunday, I will get an early night the night before, get a full nights sleep and make sure my desk etc is tidy for the next day. I'll get up in plenty of time and have a shower and something to eat. I'll have all the markets loaded into guardian ready to go as well as all the screens set up exactly how I like them. We're cooking on gas now and set up for a perfect days trading!
The only problem is the dog's just shit on the floor. Your girlfriend doesn't understand how important it is that you concentrate. There's some bastard ringing the doorbell. And the greengrocers shop you own and live above has staff that seem to think you're on call (ok, maybe that's exclusive to me).
The point I'm trying to make is that things will happen, that is life. The more prepared you are the more annoyed you will be when things don't start conforming to your "perfect trading day". There is nothing wrong with preparation but try to be realistic in your expectations about the environment you're going to be working in. Also, don't use it as an excuse for poor performance. You have a responsibility for your trading and if you don't feel your environment is suitable, don't do it. I have had two Sunday recently where things just weren't right around me and I was aware that I was getting annoyed. This is the point where I write the day off and go and do something else.
10. Be humble! Not sure if you're doing something right? Ask someone who knows more than you. Even the best traders can benefit from the advice of others. We're all different and have our own unique views and opinions on the market. Open mindedness will serve you well.
11. Be careful! Trading attracts some unsavory folk. Be skeptical of products/services that are on offer until you have a positive opinion from someone you trust.
12. Be Decisive! Decide right now. Are you a trader, or a gambler? You have to make this decision right at the start and stick with it rigidly regardless of your days performance. If you find yourself doing something reckless you should ask yourself "am I trading or am I gambling?". If the answer is the latter then STOP IT. I find this very very easy but I have spoken to many many people who struggle with separating the two.
That's all I've got folks. Hopefully this will be some help to someone out there
