Wednesday, March 17, 2010

PLEASE READ CAREFULLY! Excerpt From Stages Of A Trader by Bo Yoder



Stage Six: Mastery (also from Vad Graifer)


"At this level, the trader achieves an almost Zen-like trading state. Planning, analysis, research are the focus of his time and his effort. When the trading day opens, he's ready for it. He's calm, he's relaxed, he's centered.

Trading becomes effortless. He is thoroughly familiar with his plan. He knows exactly what he will do in any given situation, even if the doing means exiting immediately upon a completely unexpected development. He understands the inevitability of loss and accepts it as a natural part of the business of trading. No one can hurt him because he's protected by his rules and his discipline.

He is sensitive to and in tune with the ebb and flow of market behavior and the natural actions and reactions to it that his research has taught him will optimize his edge*. He is "available". He doesn't have to know what the market will do next because he knows how he will react to anything the market does and is confident in his ability to react correctly.

He understands and practices "active inaction", knowing exactly what it is he wants, exactly what it is he's looking for, and waiting, patiently, for exactly the right opportunity. If and when that opportunity presents itself, he acts decisively and without hesitation, then waits, patiently, again, for the next opportunity.

He does not convince himself that he is right. He watches price movement and draws his conclusions. When market behavior changes, so do his tactics. He acknowledges that market movement is the ultimate truth. He doesn't try to outsmart or outguess it.

He is, in a sense, outside himself, acting as his own coach, asking himself questions and explaining to himself without rationalization what he's waiting for, what he's doing, reminding himself of this or that, keeping himself centered and focused, taking distractions in stride. He doesn't get overexcited about winning trades; he doesn't get depressed about losing trades. He accepts that price does what it does and the market is what it is.

His performance has nothing to do with his self-worth. It is during this stage that the "intuitive" sense begins to manifest itself. As infrequent as it may be, he learns to experiment with it and to build trust in it.

And at the end of the day, he reviews his work, makes whatever adjustments are necessary, if any, and begins his preparation for the following day, satisfied with himself for having traded well.

The knowledge proved through research that a particular price pattern or market behavior offers an acceptable level of predictability and risk to reward to provide a consistently profitable outcome over time."


3 comments:

Anonymous said...

This is complete BULLSHIT!

Reading this letter does not, IN ANY WAY, help beginning trader to put in a trade or to exit with a target.

This letter only suck in the innocent ASPIRE BEGINNING TRADERS to subscribe (PAY) letter for whoever wrote it.

With all due respect.

Brandon

Stewie said...

Well i definitely respect your opinion Brandon but it seems like most traders who read Bo Yoder's post got something positive from the article. Even tho this is only an excerpt of the bigger which can be found here:

http://theimpatienttrader.blogspot.com/2008/01/stages-of-trader-by-bo-yoder.html

Anonymous said...

One of the best thing I like about your site is the charts that you post...NOW THOSE CHARTS ARE OBJECTIVE...PERIOD.

But when you read something that describe somethings in general terms without being specific, you know it is COMPLETELY BULLSHIT.

And it is VERY costly just trying to find out what those F...kers are saying.

Brandon

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