Today my family and I are off to the season opener to watch our Philadelphia Phillies in Washington DC play the Nationals. As avid fans we look forward to this time of year and a possible run to the big series in October. I generally try to make every trip impactful so as a master gardener we head first to the annual cherry blossom gala by the Jefferson Memorial.
Every year the white flowering cherry trees blossom into a beautiful landscape that is just stunning for 1-2 weeks. It’s really a site to behold. The great part about this is the blossom time is very predictable. It turns out that today will be peak bloom time! Talk about luck.
If only the markets were that predictable! Yes we have seasonality in trading. The predictable run up to earnings beginning every quarter, the September sell off, the Santa Clause rally. But none of these happen every year like the cherry blossoms. Seasonality in trading is a secondary indicator that is something to be aware of, not depend on. If trading were that easy everyone would just go short September 1st and long December 23rd.
I have always lived by the mantra you are either green and growing or ripe and rotten. I think its why I like the outdoors so much and the annual growing seasons. It’s the same way with trading. Once you think you know everything, you’re done. Staying green and learning is what keeps you engaged in staying on the cutting edge of your field. Consistent study of your trading system, mastering your edges that can change in a hurry, new books and strategies, trading psychology. It’s unending if you are hungry. But when you stop learning you stop growing. Soon enough your bark will toughen, and you will no longer produce flowers, the end is near.
I want you to know this business is demanding. Just like nearly every other profession, the top 10% make 80% of the money. You cannot trade for a living as a hobby. You must do your absolute best to excel in this profession. You are not gambling; you are trading based on calculated risks. You are in the game of continual improvement.
Having a list of skills that you need to master for your trading and diligently working on them is a must. Like any other professional you need to approach this vigor and tenacity to see yourself to the Eden of trading promised land. One by one over time you can master different areas until you are well equipped to be a consistently profitable trader.
I am continually looking for new trading information and training. If you want to be a professional in anything, you need to hit the books, audios, videos, and seminars. There are so many good trading books available. I use audio books as well as the traditional paperback because of my habit of highlighting and taking notes on the side columns. It’s a good idea to list what areas of trading you need to brush up on and then seek out sources to shore up your trading regimen. A book list of 10-12 books consumed per year is a good start and will keep you on top of your game. You will find a list of the absolute essentials on my website to get you started.
Did you know that if you read for just 30 minutes a day on a specific subject, in seven years you can be a leader in that subject? If you study for an hour a day, you can reach this expert level in under four years. If you study for two hours a day, you can reach this expert level in two and a half years, and if you commit to three hours a day, then in less than two years you’ll be on the cutting edge. When you’re vastly informed about a subject you love, you radiate with it.
One last thing before I go, the baseball batter analogy. Players get three strikes, and they are out. Traders keep swinging repeatedly. They are only out when they themselves say they are out. It’s time to play ball!
Enuf said.