For the last three years or so, I have written many things to help educate folks who wish to become better at making their money work. I have covered many topics, but the one I have focused on more than any other is the need to understand the real economic and market fundamentals. I believe that is the foundation for understanding where to look for trades, what trades to make, and when to make them. I have also suggested aspiring traders/investors to learn all they can learn before trading with money and I have suggested that aspiring traders/investors find a mentor, someone who can teach from personal experience. Hence, the question below is a good sign that my message is getting out.
I have been learning to trade since 2008 and I am still not able to make good money from trading, even though I understand technical patterns and I can read charts well. Everything I have learned is from books, personal education, and by listening to analysts. What I think I need is a mentor, someone who can tell me how to make a trade for good return and how to cut losses in the case of losing trades. In short, would you like to be my mentor?
First, I am flattered that you ask me to be the one to guide you personally, but I must respectfully decline. I know you can find someone better to guide you, and I encourage you to do so.
Second, I write this column five days per week, and although everyone does not always agree with me, and some think me less knowledgeable than I think of myself, I do believe I consistently give sound information about trading and investing, as I said in my introduction today. For what it is worth, stay tuned in and I will keep you in mind, as I do all the others out there trying to make their money work.
Given that, I do have some direct advice for you. Take to heart my sermon about understanding economic and market fundamentals. Technical trading is fine, and many can do it well without utilizing the fundamentals, but those folks are really, really good at technical trading. They too “understand technical patterns” and they too “can read charts really well,” but what they have that you do not is experience, lots and lots of experience. If you were to ask a technical trader about his or her early days of trading, my guess is that he or she would tell you it is hard to make money from trading, especially if you are just starting out in the game. It might take years to become successful at making money consistently.
As well, stay realistic, as I always do, even if I appear to see the world through rose-colored glasses. Actually, it appears that my view is optimistic because: 1) it is necessary to break through the noise, the white noise that fills the airwaves, the digital frequencies, and the print with negativity; and 2) it is in contrast to the aforementioned negative barrage, so it looks rosy.
As a budding trader, you need to understand the reality of what is out there, and the fact is the market is, ultimately, realistic, even if it runs scared now and then. The market cares about the fundamentals, despite the daily barrage of doom and gloom. The market sees the same facts I do. Otherwise, how do you explain what it has done since May of 2009?
I enjoy how you paint a realistic a picture of the market. Good writing. Keep it up !!!!!!!!
Thanks for the compliment. It is well received and appreciated.
Trade in the day; Invest in your life …
