Trading Advice to My Younger Self

Here are seven pieces I would give to my younger self if I could travel back in time 25 years.

Slow down, you don’t have to be in a rush to put real money at risk. The market isn’t going anywhere. Read plenty of trading books before starting to trade. It is money well spent to learn from the mistakes of others so you can avoid costly pitfalls and not lose unnecessary money and time. A good trading education is a short cut to profitability. Competence must always come before confidence in any endeavor or reality will clear up your delusions.

Memorizing facts is not the same as learning to trade. Never under estimate the difference between theory and the reality in doing. The comfort of knowledge will always be tested by the reality of fear, greed, and ego when you try to accomplish your goal in the real world.

Ask experienced traders better questions. The key to learning is not in the answers you receive from those knowledgeable but start in the wisdom you put in the questions that you ask. Focus on what is most important to profitability and ask the questions that give you the quickest short cut to achieving that goal above all else. Stay away from things that really don’t matter.

Work on creating your own system and stop worrying about what others are doing. Focus on creating a profitable trading system that fits your belief systems, screen time, drawdown and return expectations.

Put in more effort to speed up the learning curve. The smarter and harder you work the faster you will reach your goals. Side steps you take from errors slows your progress down. Seek to always give the right effort and stay on the right path.

Be realistic about trading. The quickest way to go broke is to try to get rich quick. 15%- 20% annual returns are outstanding for professional traders.

If you don’t quit and keep working on going in the right direction then only time separates you from your goals. Your greatest trading tools are going to be perseverance and self control.