This is my first post in trading view community and in this series of articles i wish to share how i evolved as price action trader; the directions i have taken to reach my goal. I sincerely hope this may be of some use to like-minded persons those are who are in same shoes.
Alright, being an investor in many financial instruments for many years, I wanted to try out to be an actual trader without any middle person in between few years back. When I formulated the thought of being a trader, as an ardent researcher and statistician, my first spark was what is my goal? How trading is going to be better than the investing, where I am already making safe and reasonable money through mutual funds and money management through different fund managers.
The obvious answer was “I want to make more money!!!!” Being a trader.
Simple answer. Genuine thought.
I have learnt in my research field that successful outcome of any research is based on asking very very precise question. Nothing is more important than precise question; the components of the question. If it is misdirected, and It happens many a times, the answer we get may not reflect the exact thought process of us. The whole of the methodology to reach that end point will be based on our simple question. And normally the simple question has to converted to research question to get the most significant answers, both statistically and pragmatically. I am not going to take you through that process, but I am going take you through the experience of mine. There is no guarantee it will be useful to you
When my goal was set as to make more money as trader, then- my thought process was, how to win every trade. How not to lose money, so I can make more profit. With this goal in my mind, irrespective of any strategies, indicators and combination of all efforts, my bet when ever placed was on wrong side many a times. I introspected; why is that so; may be something is fundamentally wrong. I thought the goal has to be tweaked. The moment I set my goal for money, all the rest of the components becomes less significant and even little loss from my goal, I become emotionally distracted and it was reflecting on my trading. so, I reset my goal to:
“”I have to understand the market to make more money””.
It was so ignorant of me not to have included the basic concepts to make more money in my mind map. So having defined the above goal, I went on learning all the components of influence the market, how to read the price action context; so instead of relying on various indicator and other tools which derive data from the actual price movement, I thought reading and understanding the actual price movement which is the price action trading will be more clear to reach my goal. Started exploring all the price action strategies, learnt from different mentors, so, as I was ready to achieve my goal; I observed I was much better than what I was, I was reacting very nicely on key levels to enter the market, chasing the market, trying to catch the market, and I did caught up with market and sometimes, I failed. I had made remarkable progress, and I introspected…… still some thing was missing, I was not perfectly confident, I was not at ease, trading was not like driving, relaxing, eating.” Trading was not becoming an unconscious effort, it was a guarded habit. So having realized that, I went back to my goal, to refine further…………..