This is the seventh installment of the On Professionalism thread series.
The previous installment thread can be found here:
Support and Guidance for Tribal Minds - Part 1
The index and first installment can be found here:
On Professionalism
In the previous installment of this thread series, I highlighted the downside of tribal-communal thinking. Now for the upside:
"What's that? There's an upside to tribal-communal thinking? I almost forgot after all the negatives..."
YES! There is!
You're going to need support. Trading, if you're doing it right, can be lonely. Most of your close friends or people you grew up with aren't going to be traders, so it's hard for them to relate with you when you're talking about your work while at social gatherings.
It's still healthy to feel the desire of being included and understood after all, so we should find an outlet for this when it comes to trading.
Start using places like this very forum as a constructive and positive place to share ideas and talk about trading in general. Perhaps keep a journal online so others can relate with your experiences too and comment on them. Connect with people who are like-minded online, since the vastness of the internet can bridge any geographical distance between you and like minded individuals. And, if you live in a city large enough, you might even find local traders meetup groups you can join.
(And please, always conduct yourself in a constructive and positive fashion when you post online or partake in any anonymous means of communication.. if you can't keep cool talking to other traders how will you ever expect to keep cool during a bad trade? It all comes back to discipline, and keeping control over your emotions is something you need to exercise at all times if you ever want to count on that skill when you really need it during a stressful trade.)
** In the previous installment, I marked two asterisks (**) when I said there was one exception to the family/friends rule. One of the single most important people you should converse with about your trading is your spouse or partner. They might not have much of an understanding but they, of all people, need to support you emotionally and they can't begin to do this if they don't understand exactly what you do.
This might not be easy, as I've dated a few people in the past that only see flashing numbers and the chance of risk, but sit down with your spouse and show them what you're so passionate about when it comes to the markets. They don't have to become a trader, that's not what I'm suggesting, but give them the very basic foundation of what's going on and how you view the world through a trader's eyes so they can feel like they understand you and what drives you in this business.
You need to be able to communicate your frustrations, and your joys, when it comes to trading. As much as your spouse will be happy for you when you do well, if they have no context and are unable to relate they won't understand exactly what that success means for you. Or, if you're having a bad week, they won't truly grasp why you're not in a great mood (beyond any losses) and may even start to resent you for being a dark cloud around them.
Communication here is key here!
After all, your spouse is your better half, so keep them included...since down the line, when you need to convince them that it is OK you're quitting your day job to trade full time, or when you want to switch careers and join a prop firm, or when you need to make any major financial decision as it relates to trading professionally, their understanding thanks to proper prior communication will pay off.
Seek out mentors.
As we want to avoid letting outside influences affect our trades, we do want to take in some types of outside influences that aid our development as a trader.
Or, put simply: You want to look for people who teach you "how to fish" (methods, strategies and mindsets,) not the ones who feed you free fish (trade calls.)
This is a "give a man a fish vs. teach a man to fish" type cliche comparison. I know. But if you want to develop yourself as a trader you'll need to look for the following in a mentor:
I can't stress this enough: If the potential mentor only wants to teach a single rigid system, sell you on trade calls, and doesn't think anything else will work: Stay away from them. If they only want to feed you trade calls alone, RUN away. Don't let others influence you in this way. (I know I keep saying it, but the point is really important.)
Taking on students.
Don't stop there; you didn't make it this far without learning a thing or two. Find students, share what you know. I'm not saying that you need to hold yourself out as a mentor, but share what you do know to others in the industry even if that means just starting a simple thread online on a forum about it.
I'm not saying you need to give away your edge, but a lot of professional traders horn in on their skills by teaching others. You really reinforce the lessons you've learned over the years if you reteach said lesson to other people. Our brains are wired to really solidify concepts in our own memory should we be expected to teach others.
(If you're still new to trading, this part won't quite apply to you, it's for experienced traders trying to better their performance and focus their skills. You can still do it as a new trader, even a newbie, but please keep in mind the limits of your experience and know when to refer to other resources when faced with questions that are out of your reach.)
Remind anyone learning from you that you won't give them trade calls, and you won't suggest trades. If they only want you to give them trade ideas then you're not really teaching them and they just want someone to make trade choices so they don't have to. Avoid these types of 'students.' Or at least explain to them that they need to think independently (maybe even refer them to this thread series, *hint hint*)
You'll get flack for it, some might even suggest you won't give trade calls because you aren't profitable or don't know how to trade, but ignore them and remember where they are coming from (a place where they can't make their own decision or want someone else to trade for them.) You didn't sign up to make them rich through your own trade choices, the only person who's going to make them profitable is themselves, you're just in this to progress yourself as a trader, nothing more. If they can't deal with this, they are better off signing up to a signal service and blowing their retirement savings chasing penny stock.
Tribal minds, once tamed and used properly, can be an asset. Recognize why you want to seek outside validation in your trading choices and why it will only hold you back. Work toward being a completely independent trader. Share this mentality with others. Your account balance will thank you in 10 years.
The next installment in the On Professionalism thread series can be found here:
Losers Average Losers, Averaging Down, and Griding it Out
The previous installment thread can be found here:
Support and Guidance for Tribal Minds - Part 1
The index and first installment can be found here:
On Professionalism
In the previous installment of this thread series, I highlighted the downside of tribal-communal thinking. Now for the upside:
"What's that? There's an upside to tribal-communal thinking? I almost forgot after all the negatives..."
YES! There is!
You're going to need support. Trading, if you're doing it right, can be lonely. Most of your close friends or people you grew up with aren't going to be traders, so it's hard for them to relate with you when you're talking about your work while at social gatherings.
It's still healthy to feel the desire of being included and understood after all, so we should find an outlet for this when it comes to trading.
Start using places like this very forum as a constructive and positive place to share ideas and talk about trading in general. Perhaps keep a journal online so others can relate with your experiences too and comment on them. Connect with people who are like-minded online, since the vastness of the internet can bridge any geographical distance between you and like minded individuals. And, if you live in a city large enough, you might even find local traders meetup groups you can join.
(And please, always conduct yourself in a constructive and positive fashion when you post online or partake in any anonymous means of communication.. if you can't keep cool talking to other traders how will you ever expect to keep cool during a bad trade? It all comes back to discipline, and keeping control over your emotions is something you need to exercise at all times if you ever want to count on that skill when you really need it during a stressful trade.)
** In the previous installment, I marked two asterisks (**) when I said there was one exception to the family/friends rule. One of the single most important people you should converse with about your trading is your spouse or partner. They might not have much of an understanding but they, of all people, need to support you emotionally and they can't begin to do this if they don't understand exactly what you do.
This might not be easy, as I've dated a few people in the past that only see flashing numbers and the chance of risk, but sit down with your spouse and show them what you're so passionate about when it comes to the markets. They don't have to become a trader, that's not what I'm suggesting, but give them the very basic foundation of what's going on and how you view the world through a trader's eyes so they can feel like they understand you and what drives you in this business.
You need to be able to communicate your frustrations, and your joys, when it comes to trading. As much as your spouse will be happy for you when you do well, if they have no context and are unable to relate they won't understand exactly what that success means for you. Or, if you're having a bad week, they won't truly grasp why you're not in a great mood (beyond any losses) and may even start to resent you for being a dark cloud around them.
Communication here is key here!
After all, your spouse is your better half, so keep them included...since down the line, when you need to convince them that it is OK you're quitting your day job to trade full time, or when you want to switch careers and join a prop firm, or when you need to make any major financial decision as it relates to trading professionally, their understanding thanks to proper prior communication will pay off.
Seek out mentors.
As we want to avoid letting outside influences affect our trades, we do want to take in some types of outside influences that aid our development as a trader.
Or, put simply: You want to look for people who teach you "how to fish" (methods, strategies and mindsets,) not the ones who feed you free fish (trade calls.)
This is a "give a man a fish vs. teach a man to fish" type cliche comparison. I know. But if you want to develop yourself as a trader you'll need to look for the following in a mentor:
- A focus on consistency regardless of the strategy.
- Ability to objectively look at any strategy, not just preach about their own method, since a professional career trader is adaptable to different strategies in different markets and understands that not everyone thinks the way they do.
- Ability to tell you what's not working and what you need to stop.
- Ability to talk about their own mistakes and their own trading record without buffing out the scratches... EVERY trader makes mistakes, it's how they survive their mistakes and learn from them that matters.
- Ability to walk you through lifestyle exercises and theory exercises that will help build skills used in trading. Mental walk throughs, number games, probability theory, etc...
I can't stress this enough: If the potential mentor only wants to teach a single rigid system, sell you on trade calls, and doesn't think anything else will work: Stay away from them. If they only want to feed you trade calls alone, RUN away. Don't let others influence you in this way. (I know I keep saying it, but the point is really important.)
Taking on students.
Don't stop there; you didn't make it this far without learning a thing or two. Find students, share what you know. I'm not saying that you need to hold yourself out as a mentor, but share what you do know to others in the industry even if that means just starting a simple thread online on a forum about it.
I'm not saying you need to give away your edge, but a lot of professional traders horn in on their skills by teaching others. You really reinforce the lessons you've learned over the years if you reteach said lesson to other people. Our brains are wired to really solidify concepts in our own memory should we be expected to teach others.
(If you're still new to trading, this part won't quite apply to you, it's for experienced traders trying to better their performance and focus their skills. You can still do it as a new trader, even a newbie, but please keep in mind the limits of your experience and know when to refer to other resources when faced with questions that are out of your reach.)
Remind anyone learning from you that you won't give them trade calls, and you won't suggest trades. If they only want you to give them trade ideas then you're not really teaching them and they just want someone to make trade choices so they don't have to. Avoid these types of 'students.' Or at least explain to them that they need to think independently (maybe even refer them to this thread series, *hint hint*)
You'll get flack for it, some might even suggest you won't give trade calls because you aren't profitable or don't know how to trade, but ignore them and remember where they are coming from (a place where they can't make their own decision or want someone else to trade for them.) You didn't sign up to make them rich through your own trade choices, the only person who's going to make them profitable is themselves, you're just in this to progress yourself as a trader, nothing more. If they can't deal with this, they are better off signing up to a signal service and blowing their retirement savings chasing penny stock.
Tribal minds, once tamed and used properly, can be an asset. Recognize why you want to seek outside validation in your trading choices and why it will only hold you back. Work toward being a completely independent trader. Share this mentality with others. Your account balance will thank you in 10 years.
The next installment in the On Professionalism thread series can be found here:
Losers Average Losers, Averaging Down, and Griding it Out