This is Tenozen and I’m 22 years old now, funny how I quite different back than. I’m glad that I don’t quit and keep striving for my goals… I do respect that. Those naive days, not knowing of what’s to come, the struggle that I’ve been through finally paid off.
Tbh in those 2 years of struggle, I feel like a lost child. I really don’t know who to follow, who should I learn from, who to depend on, and the only option for me is to seek and learn all by myself.
Can you imagine the pressure that I’ve got? How people doubt or worry about my future? All because I chose to drop out from my uni, to strive trading as my career? Who in the right mind would do that? Right?
But well… here I am, a profitable trader.
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So let me tell you guys of how I achieve this, as this is the important aspect for you to become a profitable trader.
People always say, “RiSk MaNAgMenT Is tHe kEy tO SuCceSS tO bEcOMe A PrOfiTabLe TrADEr”, what a joke. I do agree that risk management is important, but it is not the main aspect to become a profitable trader.
The real key to success of becoming a profitable trader is to have a good trading system. Maybe you do have a good risk management model, but your trading system is shit… All would turn out to be shit and you’ll go broke in no time. Trust me, I’ve been there.
So now… What do I mean by a good trading system? A good trading system consists of 2 aspects… consistency and robustness.
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Consistency
Consistency is not about profitability, but how consistent your behavior and action towards the market.
Example: Do you change alot to your trading style? Are you impulsive? How often do you trade? Do you over leverage? Do you revenge trade? Etc.
Those questions are the stuff that you should figure it out by yourself, you can’t learn by only knowing of how to handle it from others, but you should also experience the feeling of it yourself. By feeling it, of how painful it is to fail, and not being your better self… You would eventually understand the importance of not doing the same wrong thing again and again.
Robustness
Robustness is about how well you understand the market. You’re being a clown if you didn’t even know what market you’re trading with… every market have it’s own behavior, and we should adapt towards it.
Example: At what time does the market have the highest/lowest volatility? What is the average returns of the market based on the time frame I’m using? What is the expected worst/best case returns? What is the real fair value of the price? Etc.
By asking those type of questions, you would know what market or trading style suits you best, how much you should risk, what time you should trade, etc.
Just keep digging and find it out for yourself, as seeking for those information is valuable. The only hardest part is to figure it out of how to make a use of those information, so try to make a sense out of it and be creative with it. For me, reading quantitative finance papers/books helps me alot on giving me ideas, so I recommend you guys to try reading it too.
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So that’s how you could make a good trading system, the point is not about profitability but how well you understand about the markets and how consistent you are towards it that would eventually resulting you to become a profitable trader.
Believe in yourself that you can, and always be thirsty in seeking to become a better trader. If you find yourself stuck, that means you should not be fixated on the same aspect, but rather try thinking from a different perspective towards that problem.
Well that’s it, I hope this article helps! And goodluck with your trading journey! Ciao!
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