Category: Traders’ Stories

Traders' StoriesTradingTrading Psychology

Lessons from 50 years of trading experience: key skills and achievements

Survival on the market

The best traders I’ve met pointed to survival on the market as their main achievement. By studying their biographies, you can benefit in one particular way: you will strengthen your ability to adapt. Markets are changing and will continue to change, sometimes dramatically. Alternative data, big data and AI are coming into widespread use.

The best traders are defined by three key words: adaptation, proactivity and resilience. I’ve talked to traders who have more than 50 years of market experience. They started when orders were still placed over the phone with a broker.

Each of them has survived huge changes, not only survived, but was able to use these changes for themselves.

This is no small thing, most traders and investors, are not able to survive even a year on the market! And they not only survived but also tried to use the new that came along to their own advantage. And they succeeded.

Proactivity

Such an attitude is called proactive. They actively looked for the new opportunities that the change brought. They repeatedly changed their systems, tested them, refined them, learned new things about the markets and used this in their decisions. They were constantly learning and continue to learn, as many of them are still actively trade! What is a threat to some may be an opportunity for you. Try not only to survive on the market, but actively (pro-actively) take advantage of the opportunities this new thing brings. The world belongs to people who learn. A system that “always works” is a huge rare thing, and at best brings only small profits. Set your mind on learning, developing your system and psychological advantage.

P.S. I have included my conversations with traders in the book Conversations with Forex Market Masters. You can get it here: ForexMarketMasters.com/conversations-with-forex-market-masters/

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Books & TrainingsTraders' StoriesTradingTrading Psychology

The cardinal rules of trading according to the best traders in the world

The cardinal rules of trading according to the best raders in the world

One day I came up with the idea of finding the best traders in the world and then asking them about everything that is relevant for achieving success on the market. I wanted to know their full story — from the beginning, up until now. In the result, I interviewed almost 100 traders from all over the world. One of the questions was “What are the cardinal rules of trading according to you?” Check it out, what some of them told me…

I have seen many lists of cardinal rules. They are almost all the same. I will give you a different list of rules. One you probably have never seen before. There is no law against any of these things:

  • A passion for trading,
  • Self-control,
  • Humility,
  • Faith in yourself and your trading plan,
  • Being good at chart reading,
  • Being kind to others and not trying to get it all,
  • Being patient to wait for your trade,
  • Being at peace with yourself and with the markets,
  • Being joyful in the knowledge that you can win in the markets,

All of the above add up to truly loving to trade, and:

  • LOVE as “Perfect love drives away fear”.
- Joe Ross

I don’t really have cardinal rules other than limit your potential losses. If you suffer too much of a consistent drawdown, step away from trading for a while. That’s something typical, what most experienced people will tell you. Stop trading and find out what you are doing wrong.

Also realise that trading may not be for you. I always use the example that I’ve been trying to learn Spanish for the last two or three years but languages are not for me. I find it very difficult and Spanish is probably the easiest language to learn, for an English speaker anyway. I just have a terrible time. I would not even think of making my living where I had to speak Spanish.

So many people should realise that trading may just not be an appropriate business for them. As far as the cardinal rules go, I don’t have ones. That makes it sound like it’s too simple if we make some rules and be successful. And it’s not the case.

- Rober Miner

Build a plan. I can’t tell you: trend-following is better than counter-trending, swing trading is better than scalping. Everybody has to find what kind of approach is best for his personality. Whichever thing you choose, build a plan of what you are going to do.

I always say that it’s hard to make decisions and imagine how hard it is to make decisions when you are under stress. And when you are trading, you are definitely under stress, that’s normal.

Decisions should be made before clicking on the mouse. Once you have clicked, everything should already be decided and you should know what you are going to do next.

- Andrea Unger

Plan the trade, trade the plan. Define the market.

- Mostafa Belkhayate
  • Learn to allow yourself to lose or not be right.
  • Develop a procedure or trading plan.
  • Whether discretionary or automated plan the trade, trade the plan.
  • Never catch a falling knife.
  • Bulls make money, bears make money, pigs get slaughtered.
  • Determine your targets and stops based on expectation.
  • The market is always there. Trade to fight another day.
- Albert Bruno

I follow my 3 basic trading rules. When I hit something I’m not sure about step aside, fall back on the 3 basic rules and if you’re still unsure leave it. There will always be another trading opportunity.

It is better to be out the market wishing you were in, than in the market wishing you were out.
Always know what you are going to do, when you are going to do it and why.

Never chase a trade. If I miss a trade, so be it.

- Phil Newton

Rule 1: Trade what you see, not what you hope to see.
Rule 2: The bottom-line is that the market doesn’t care what type of analysis you use or how smart you are - it is always right.
Rule 3: Never hope, wish or pray as that is a sure sign that you are in a bad trade.
Rule 4: When you are wrong, you are wrong and just get out of the trade immediately.
Rule 5: Don’t be impatient and force trades to happen.
Rule 6: Never enter a trade without a money management plan.
Rule 7: Have an exact strategy for entering and exiting all trades and never deviate from it.

- Jeff Wilde

1. Plan your trades and trade your plan without wavering!
2. Do the dance you are taught until you learn a dance of your own. In other words, don’t change a system you have learned until you fully understand the system, the market and yourself!
3. Trading is a business, so know your performance numbers!

- Todd Judkins

There is more trading wisdome!

Yes, I wrote an e/book containing selected interviews with the best ones of them. You’ll find there opinions of the world-famous traders, millionaires, winners of international contests, and people who had control over market and have plenty of personal experience in this matter. Some of my interviewees had more than 50-year experience in all of the possible markets.

You can fint here: “Conversations with Forex Market Masters

I asked over 80 questions like the one above. I truly hoped to discover everything that decides about the success of the best ones, all the problems standing in the way of the profitability and possible solutions to them.

Check it out: “Conversations with Forex Market Masters

Traders' StoriesTrading

The 7 books on trading that every trader should read

A must-read book list for every trader

People learn from their mistakes, smart people learn from the mistakes (and successes) of others. A nice shortcut is to read books containing biographies and interviews with successful traders. These books every trader should know.

What benefits trader will get from reading books?

Many traders will show you the problems you are yet to face and sometimes you will find a ready-made solution that they found by trial and error. It cost them a lot of time, money, nerves.

This is a fantastic time and money saver for you.

You will learn their methods of operation, approaches to market analysis.

You will master to learn from your failures and successes. This is an invaluable skill, many traders simply persist in ignorance and live through the pain of loss and failure when others have moved on, found a solution and won.

I’ll say it again because it’s extremely important: you will learn that even the worst events have an element of progress as long as you can find it and use it. And that you have to keep a distance to everything. And that there is always a solution.

This quality – the attitude to learn and develop – is one of the traits that distinguishes the most outstanding traders. You can have it for free. 

Books recommend to read for traders:

Unknown Market Wizards: The Best Traders You’ve Never Heard Of – November 3, 2020

Market Wizards, Updated: Interviews With Top Traders Paperback – February 7, 2012

The New Market Wizards: Conversations With America’s Top Traders – January 12, 1994

Hedge Fund Market Wizards: How Winning Traders Win – May 29, 2012

Stock Market Wizards: Interviews With America’s Top Stock Traders – April 15, 2003

The Little Book Of Market Wizards: Lessons From The Greatest Traders – February 24, 2014

I knew the value of talking to the best, so I reached out to them many years ago and did many interviews myself. You can find the interviews in the ebook “Conversations with Forex Market Masters”

You can literally get it for pennies here: https://forexmarketmasters.com/cwfmm/

Conversations with Forex Market Masters
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Traders' StoriesTradingTrading Psychology

How profits can destabilize trader’s psyche

A trader I met approached me with the following problem. He was having an exceptionally good day, an excellent day in fact. As luck would have it, he entered a large position at the beginning of the day (day trader) and due to the terrorist attack the market fell dramatically…

Traders' Stories

Traders’ stories: a convoy of gold and platinum that was robber by accident

A closer look at this popular opinion has shown that it is wrong. One trait is much more important than discipline, and it is evident in the best traders.