We have to have some bad positions to learn from our mistakes, but smart enough people learn faster from their mistakes than others. I have met some traders who spent already more than a decade in this business and year by year make the same mistakes and repeat and repeat again and again.
All of you heard about 10.000 hour rule by Malcolm Gladwell, which suggest being really good and reach the top you should practice for 10.000 hours. Sounds long, doesn’t? If we count with 5 trading days per week and 10 hours trading day you have practice for more than 4 years. I doubt that.
If you learn fast enough from your mistakes and learn how not to do stupid things within 3-6 months you can be a quite a profitable trader. What is the rule and secret? Don’t hope just cut the loss and let the win ride. Most of the time we make wrong decisions – just look at Dennis Gratman’s statistics, he is 75% of time wrong but he is profitable, because he covers the losing position if it is against him. That’s it. And how the market sends you a massage your are wrong. YOU ARE LOSING MONEY. It’s that simple.
So don’t believe by the longer time you are going to be a better trader, it is not the fact. Learn fast and change your attitude and learn always from your mistakes.
New studies prove that you don’t need 10.000 hours practicing. They studied former chess players and musicians and pointed out that there is huge variation in how long it took to get to the level of a chess master. One player for example, "took 26 years of serious involvement in chess to reach a master level, while another player took less than 2 years to reach this level," they write. There are many other factors not only the practicing.
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The BFM Assets Team.
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