Following on from my previous post about challenges which have risen in my academy, there's no doubt about the biggest one - a lack of understanding about value. That's to be expected and it's always going to be difficult to explain to someone who doesn't get the concept, just how you acquire the ability to be able to find it. For me, it's like learning to drive a car. No one has any idea what they are doing the first time they get behind the wheel and the co-ordination required to do all those actions at the same time (work one pedal with either foot, move the gear stick, control the wheel, check mirrors and keep an eye on speed) is beyond any human capability without practise. It's the same with spotting value in-play. You have to take into consideration a number of variables at the same time (what the market is doing, what's happening in the match, your strategy, liquidity, statistical data, previous knowledge, match conditions, time left etc) and within seconds, use them to assess and make a decision on whether to enter or exit the market. There's no way you can do that reliably without prior experience gained over many, many hours of study.
Just like driving, some people pick it up very quickly whilst others (like myself who took over 50 lessons and failed the exam twice!) find it more difficult to grasp. But that doesn't mean you can't still become an expert at it (I'm a bloody good driver now, though doesn't everyone think that?). Some traders have surprised me with how quickly they pick up the concept and seem to know what to look for. Others are frustrated that they don't really get it yet but it's far too early for any of my members to expect it to click. But as with driving, one day, it just does.
I remember the exact day it did for me. I'd been learning for about a year on and off, had 4 different instructors and two of them had actually shown frustration with me (bell-ends) because I just wasn't quite getting it. But the 4th instructor (a woman whilst the rest were all men - coincidence?!) within one session had diagnosed two big issues with my driving that none of the others had mentioned. As soon as I rectified those, my driving improved immensely and I was ready for the exam. My story goes to show just how having the right teacher is critical in these situations and I believe trading is no different. Some of my students have already told me that they now look at the markets in a totally different way since joining the academy and that is exactly what I'd hoped would happen. I've always said it isn't about copying strategies and instantly profiting - it's about changing to the correct mindset and approach. It's about opening up new possibilities and learning the fundamentals that will enable you to work the markets like successful traders do.
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Time and time again, I see the same pattern emerge with the emails I receive: Unsuccessful trader over a period of months / years; Boom and bust periods - profit for a short time but lost usually very quickly with a few poor trades; Belief that the strategy (their own strategy) is not the issue but their mind is. But what I say to them is, it's probably a combination of both.
Once I'd discovered that psychology was a vital component to trading, I was elated because it meant that the problem wasn't with my strategies, it was with me! So all I had to do was to work out how to stop chasing and to red-up when I was supposed to and all would be fine. But I was wrong. The problem WAS with my strategies AND my mindset! And it ran far deeper than simply chasing losses and not exiting when I should do. Psychology in trading isn't just about those rash decisions we make in the heat of the moment. It's about our whole approach to trading and the way we look at the markets. If that aspect is wrong, then it stands to reason that any strategy we devise is also going to be wrong.
Once I discovered the correct ways to view the market, I was able to work on totally different sets of ideas and these ideas are the ones I make consistent profit from. Sure, I still had to work hard to stop chasing losses and stick to my exit points but all of that becomes much easier once you have 100% conviction in what you are doing and that your approach is the right one. That doesn't mean that my specific strategy is the only way, far from it. There are any number of ways to skin the proverbial cat. I've spoken with and read articles by many of the major players in the online trading blogosphere and none of them do things the exact same way. But I can guarantee you that those who strip the feline fur successfully, ALL have the exact same mentality when it comes to their overall view of the sports markets. I've come to realise that teaching this, is what my academy is all about. I'm quite confident in my ability to put traders on the right path to success. Whether they continue along that path, stall in first gear or decide to veer off up a one-way street is another matter and something I'll discuss in part 3.
![http://centrecourttrading.blogspot.co.uk/2013/09/sultan-tennis-trading-academy_7.html]()
Just like driving, some people pick it up very quickly whilst others (like myself who took over 50 lessons and failed the exam twice!) find it more difficult to grasp. But that doesn't mean you can't still become an expert at it (I'm a bloody good driver now, though doesn't everyone think that?). Some traders have surprised me with how quickly they pick up the concept and seem to know what to look for. Others are frustrated that they don't really get it yet but it's far too early for any of my members to expect it to click. But as with driving, one day, it just does.
I remember the exact day it did for me. I'd been learning for about a year on and off, had 4 different instructors and two of them had actually shown frustration with me (bell-ends) because I just wasn't quite getting it. But the 4th instructor (a woman whilst the rest were all men - coincidence?!) within one session had diagnosed two big issues with my driving that none of the others had mentioned. As soon as I rectified those, my driving improved immensely and I was ready for the exam. My story goes to show just how having the right teacher is critical in these situations and I believe trading is no different. Some of my students have already told me that they now look at the markets in a totally different way since joining the academy and that is exactly what I'd hoped would happen. I've always said it isn't about copying strategies and instantly profiting - it's about changing to the correct mindset and approach. It's about opening up new possibilities and learning the fundamentals that will enable you to work the markets like successful traders do.
Vitalia Diatchenko
Once I'd discovered that psychology was a vital component to trading, I was elated because it meant that the problem wasn't with my strategies, it was with me! So all I had to do was to work out how to stop chasing and to red-up when I was supposed to and all would be fine. But I was wrong. The problem WAS with my strategies AND my mindset! And it ran far deeper than simply chasing losses and not exiting when I should do. Psychology in trading isn't just about those rash decisions we make in the heat of the moment. It's about our whole approach to trading and the way we look at the markets. If that aspect is wrong, then it stands to reason that any strategy we devise is also going to be wrong.
Once I discovered the correct ways to view the market, I was able to work on totally different sets of ideas and these ideas are the ones I make consistent profit from. Sure, I still had to work hard to stop chasing losses and stick to my exit points but all of that becomes much easier once you have 100% conviction in what you are doing and that your approach is the right one. That doesn't mean that my specific strategy is the only way, far from it. There are any number of ways to skin the proverbial cat. I've spoken with and read articles by many of the major players in the online trading blogosphere and none of them do things the exact same way. But I can guarantee you that those who strip the feline fur successfully, ALL have the exact same mentality when it comes to their overall view of the sports markets. I've come to realise that teaching this, is what my academy is all about. I'm quite confident in my ability to put traders on the right path to success. Whether they continue along that path, stall in first gear or decide to veer off up a one-way street is another matter and something I'll discuss in part 3.
