Learn how to trade by following live trading
You will accelerate your development as a trader by watching live trading or analyzing videos of how someone makes live decisions. Ideally, of course, it is the author of the trading system you are trading with or it is an experienced trader who plays with a system as similar as possible to yours.
Traders who teach others don’t talk about many things that are part of their decision-making process. You can only catch it live when they think out loud during analysis, entries, position management and trade exits.
They don’t hide information on purpose, they just aren’t aware that some element of their analysis or decision is important. Or they assume that something is obvious.
Often some part of the system was not presented during training, because the relevant market situation did not arise.
Learn how to trade by teaching others
This attitude changes only after several years of teaching others on the basis of questions from students trader-mentor realizes what still needs to be added. But there are times when he completely fails to explain something because it is in the sway of his unconscious competence.
Once I was at a training session with a real scalping star, of course I asked a lot of questions. To my frustration, about 30% of the time the conversation went something like this:
– Why did you enter here and not there?
– There is a wrong place.
– And why is it wrong?
After a moment’s thought:
– I don’t know. Just is.
This trader had an outstanding trading record, much of his knowledge came from observing market behavior, and he hadn’t yet verbalized it – in other words: he hadn’t put into words what he was seeing. He was a novice trading teacher. He couldn’t yet explain a lot of things.
At the time, I thought this was a no-brainer and I would return to these questions in a year or so and in the meantime I would persuade him to continue training others. I explained to him the reason – the idea is that the students will ask him a lot of questions that will make him better aware of his decision-making process himself. As a result, he will improve the system, better understand it, better see the difference between his best inputs and average and bad ones.
And that’s what happened, after a few months he thanked me, because he actually plays better, sees more in the market and understands it better.
Learn how to trade: conclusion
You have been given 2 tools to help you understand the system:
- following live trading or reviewing recorded videos, where there is a real-time record of how a trader thinks (this is what I call the decision-making process). This allows you to find subtleties that are not usually found in either training or textbooks.
- teaching others the system, through many questions the trader is able to look at the market differently and understand it better. He better understands and improves his own decision-making process.