August 12, 2008 at 1:27 pm | | Comments 4

Train Well to Trade Well

While watching the Olympics, it never ceases to amaze me the dedication of these athletes and the preparation they go through in order to be at their very best. These people are what some might call ate up with it! They’re consumed with improvement, they’re completely focused on peak performance, and their commitment level is unparalleled.

I’m sure you see where I’m going with this.

If you want to be a good trader and turn real profits from your efforts over time, you can’t just treat it like it’s a short-term hobby. It can’t be something you work to improve at only on occasion or whenever you feel like it. That isn’t to say that it should dominate your life – because it shouldn’t. But I am saying that you’ll get out of it what you put into it. Good habits pay off.

Like a world-class athlete, you absolutely must train well to trade well. It’s a continual thing, regardless of your time availability. If you can only put 30 minutes per day toward your trading, then by all means do it – day in and day out. If it’s 8 hours, so be it – you’ll come to expect even more from yourself.

Make an effort to consistently improve, and you’re going to see the results. Think of it this way… hopping on the treadmill 5 days every week would have you in better shape a month from now, right?

Trading isn’t any different. It’s a honed skill that requires consistent action on your part. That doesn’t mean you continually press buttons, but it does mean that you set some attainable process-related goals to strive for each month.

Designate some tasks you know you need to perform regularly in order to keep improving, and get after it. Whether that’s your nightly homework, a month-end review of your trades, or something else, those frequent milestones will keep you on the right track. It’s all part of trading responsibly, which is what this is all about.

Now let me be clear… I’m sure not saying that your life should revolve around trading. I don’t believe that, and a balanced life has far more important aspects to it than trading. But when it does come to your trading, if you want to be truly good at it, then examine your level of dedication and adjust accordingly.

Remember – trading is a marathon, not a sprint. Treat your daily activities that way, and you’ll see that over time you are building up to much better skills than you currently possess. Keep aiming for patient progress, and the steady account growth you get as a result will reiterate to you that you’re on the right path.

But it takes practice, building each day on the previous day, just like an athlete training for something bigger.

Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service