Tuesday, January 19, 2010

TraderFeed repost:

Another great set of thoughts from Brett Steenbarger:

1) Turn Every Day and Week Into a Learning Experience - Make sure that you take away from each day something positive that you've learned and will work on in the days ahead. If you grade yourself on your learning and your improvement, you'll be able to weather the trading setbacks;

2) Find Teammates - One way soldiers get through the rigorous training of Rangers and SEALs is with the support of buddies. Colleagues can advance your learning, but can also be a source of encouragement and challenge when times are tough. 

3) Hone Your Niche - Relentlessly identify what is working for you in your trading: what you're doing well when you're making money. By focusing on your strengths, you can build upon those and stay in your performance sweet spot.

4) Have Plenty of Reserves - You can't be pressuring yourself to make a living from your trading when you're just first learning how to trade. Like any business, you need to be well capitalized, so that you can survive the lean times and the start up phase.

5) Make Sure You Have Support at Home - A spouse needs to be part of a trader's business planning. The support at home is key when it comes to facing those lean times and start-up frustrations. To sustain that support, the trader needs to make sure that the financial needs of the couple and family are not jeopardized by the time (and capital) devoted to trading. 

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