Michelle B submits: In the beginning years of my learning trading, I encountered two opposing trading styles–1) anticipating a trading move before it got under way, and 2) reacting to the move once it had clearly started. The proponents of these two approaches were both equally and dogmatically adamant their stance was correct and the only worthwhile one, while the other was an undisciplined joke. The anticipation crowd called the reaction crowd a bunch of chasing sheep, while the reaction crowd called the anticipation crowd a bunch of impatient losers.
Among my mentors, the two with whom I had the most contact were followers of these opposing perspectives. For a developing trader, this environment was like the push/pull of a dysfunctional family. I was expected to do two opposing actions for the same situation! Because of this conflictual learning situation, I would feel uncomfortable if I anticipated a move, even if it worked, and I would feel just as uncomfortable if I reacted to a move, even if it worked. Eventually I became stuck, trigger-shy, and unable to execute perceived opportunities.
By frequently trading, by developing a basic skill set, by actively searching out other opinions, and most importantly, by watching the tape via streaming charts, I eventually developed the confidence to trust in my ability to discern when to do one or the other, or even to do the more sophisticated combination of both, as deemed appropriate per trade. Therefore, I was able to conclude that these mentors could both very well go take a hike, and that I would become my own mentor. The incomparable Brett Steenbarger has mentioned that being your own mentor is the preferred route.
Both my former mentors, to the best of my knowledge, are still in the business of trading successfully. They found their edge, and they consistently follow it. However, embracing their edge so completely meant they were very biased as teachers, because they were incapable of identifying and encouraging my ability to do both edges. They gave me the threads though, and it was my own mentoring that wove those threads into a battle dress which I wear when I interact with the market.
A concrete result of my mentoring can be seen in, ININ, An Anatomy of a Friday Morning Daytrade, where I both anticipated and reacted by purchasing half of my lot before the breakout, and the other half after the breakout.
Hi Michelle,
You have to scroll down far or you would miss this post. My query is about mentors, I wonder if some are taught by traders who are friends and are shown the ropes person to person and how many are lucky to have this. I have never seen anyone trade in person, and have tried to learn from books, sites and videos. I think it would be better to be taught person to person, just like if you are learning to be a doctor. How did you learn?
Glenn,
You’re never at a loss to find something to complain about on my site. First it’s the ads, then it’s my use of R-Multiples, now it’s that you have to scroll too far. I’m shocked that you still visit the site given all the issues you have with it.
something for the subject…i recalled the “anticipation manifesto” by jimmer…still worth a read
http://www.dacharts.com/articles/jimmers_anticipation_manifesto.htm
Glenn, On TraderMike’s site and similar sites rich in content, you need to keep an eye on the nifty scroll bar to the right. That’s what I learned to do after missing some great posts–my eyes at first just go to the right, and quickly scroll down and read the titles of the posts, and then I read the posts at a more leisurely speed.
Glenn,
The mentor is yourself, you got everything within you to figure how what you need to do to trade well. The majority of mentored students do not succeed for that reason, (including the students that I have mentored), because their energy is not focused on the proper mentor, which is themselves. I only started to mint the coin consistently when I made that psychological switch in becoming my own mentor. And I do not any longer mentor students one to one via IM because it does not work for the students.
My mentoring was done via IM by people I never met in the flesh, or even knew what they looked like or sounded like! I met them on message boards and chat groups. I have never seen a trader working in person either. And I also learned from books and sites. In the last year, the quality of trading blogs have increased exponentially, so traders beginning the business recently, have opportunities that you and I did not have. But we have them now.
I have a medical background, and the group learning that has been taking place within this particular blog circle (MaoXian, TraderX, TraderMike, Wall Street Warrior, Alpha Trends, Ugly Chart, The Kirk Report, etc.) reminds me of the daily hospital rounds, where we learned together from observing and examining the patient. The head honcho, if his ego was big enough, actually hindered this process. The patient of course in our case is the market. That is the teacher.
Peter, I will check out that link, thanks.
The best way not to miss any posts is to subscribe to the feed! I’ve been telling folks that for years now and I’ve specifically told Glenn about the feed before when he was complaining about he ads on the site.
The lesson I get from this post is that BOTH trend-following and anticipation WORK. Two mentors with different methods, both still trading successfully.
There are so many ways to make money in the markets, the issue is not FINDING one but CHOOSING one and STICKING TO IT.
Bill,
Consistency is the key. You follow your method and respect your risk management, and despite lack luster win rates, or losing streaks, you can still accumulate profits.
By being your own mentor, I meant you know yourself the best, you know your weaknesses, or strengths (some gifted mentors can assist in this discovery, but they are not a dime a dozen). And I was able to do both approaches separately and even mix them, and my mentors negatively criticized that aspect of my development, they insisted that I cannot do what was natural for my abilities to do. As mentors, they failed. As traders, they succeeded. There are lots of paradoxes in the world of trading.
We’re on the same page with stick-to-it-iveness.
Most people who chose NOT to self-mentor learn only how to “box against boxers,” so to speak. It’s rare to find a teacher or mentor that is more than a one-trick pony, because most people are. I had a teacher once who used to teach only tang soo do, but he tore up his knee. To stay sharp during rehab, he practiced boxing and had an “aha!” He integrated that, and later akido, into everything he taught afterwards.
Most people never look at more than one approach or system, much less try to integrate them. It’s one thing to settle on a single approach that you’re comfortable with after examining many approaches, but it’s a horse of a different color to only be taught one approach …
Sorry bout that Mike, I was not trying to be negative.
Bill, Thanks for that excellent response. I especially appreciated the analogy “box against boxers”.