The Four Key Elements to evaluating a Trading Method
We receive a lot of emails asking us about all the different trading methods offered and almost every inquiry comes with a concern based on a real life experience with a prior trading educator, mentorship, course and so on. Most of the traders we talk to were either disappointed or regret buying certain trading products, claiming that it did not deliver the satisfactory knowledge necessary to succeed in the market place.
We cannot verify each method taught, approach or outlook nor is it our place to decide whether the purchase was worth it or not. Individual experience may vary and there is no way to realistically quantify every method offered out there. On the other hand, we are fully aware of the overwhelming number of choices today – From courses, mentorships, indicators that at times we feel are offered by vendors who lack sufficient real time market experience.
So if you are someone who purchased literature in the past or are shopping around in order to further enhance your knowledge, we recommend you implement the following approach when it comes to trading:
- We truly believe that the development of your own methodology has to be based on a sound understanding of the supply and demand of market prices. More specifically, a thorough understanding of the odds of whether the buyers or sellers are controlling the markets.
- We discourage people from thinking in terms of red light/green light whereby you seek a method that has some sort of a probability that you think will work under all market conditions. Rather, we encourage you to seek out a set of tools (indicators/methodology) that can be used under different market conditions. Your experience over time will dictate which set of indicators will be better suited for the different markets you trade.
- We encourage the understanding of a value-based approach where you DON’T look at prices only in terms of highs and lows, but rather in the value perceived at that point in time to other buyer and sellers. This approach will prevent you from attempting to catch the high and lows to the point where prices are just numbers.
- Your frequency of trading should match your personality and tolerance and above all should only increase as your own trading experience increases. Overtime, you will actually find yourself feeling more comfortable trading certain markets at certain times of the day. There is no way quick-fire way to achieve this. Only time and patience will get you there.
The point is, regardless of whether or not you believe that you will be able to yield positive results from the material that Third Party Educators are offering, you should always strive to identify the odds of who is in control of markets. From there, learn to use a set of tools that work under different market conditions so you can recognize the difference between real value and perceived value. And finally, above all else, know your limitations and learn to respect your own trading experience.
There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.
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