Think Like A Trader Blog

Thursday, 16 February 2017

T-Model Trader Blog Post 8 - Beginner Trader Series (With a beach shot to make everyone jealous!)

Hello Traders.
T-Model Trader is back with his 8th blog post in the beginner trader series. I have included a picture of a beach so we can all get a little hint at how difficult it must be knowing that view is waiting for you only a few minutes away!
I do believe if I moved to Australia I would need to find a way to have high speed broadband for my laptop on the beach!
I hope you've all had a great trading week.
James Orr

Blog Post 8 From the T - Model Trader
I have to admit that it has been a very slow start to the trading year for me. As I recall, I wrote how I was looking forward to the new trading year in the last blog of 2016. Reality has it that I am seriously in summer holiday mode and the call of the beach (3 minutes’ walk away) has got the better of me in the late afternoon heat on many occasions (trading time for me here in Oz). 

So, in this last week and a bit, I have put on my trading cap (a DT one of course), wiped off the sweat and have sat to write this and launch myself back into it all.

Sometime in 2015, a few months prior to studying with DT, I read an article about getting to know the market that you trade, authored by a very (Very) successful Australian trade. As my trading knowledge and understanding at the time was several bucket loads short of bugger all, then most of it entered and exited the brain department without much of a fanfare.
I did however get the general gist of what he was writing about, even if I thought that getting to know a markets personality was bordering on being a bit ludicrous, as it all just seemed pure randomness. How on earth I wondered, does one even go about doing such a thing?
In that article, there was one thing that has stuck in my mind thou. He stated that the “market rewards the specialist, not the generalist”. In those first few months of teaching myself trading prior to DT, I had untold numerous forex pairs set up on the trading platform, as quantity equaled…..well…..something better than what I knew at the time. I recall being so stressed out trying to figure out how to remember what was what.
The thing was, that at the time I was doing what so many do (I am assuming), which is to listen to endless Youtube clips about trading. I would see these videos and when they go to pull up a forex pair to illustrate some point, they would have a squillion of them to choose from. And that is what I thought I had to do as well. Damn near killed me thru neuron overload!
So when DT popped into my life with just one market, although somewhat relieved, I was also a bit puzzled. As I thought (lead to believe/assumed) my trading diet should be one of maximum consumption, then one and only one market seemed like a bone trimmed clean.
So, over several months (besides the occasional dally on the ASX 200 (my daytime), the Ftse was the only market that I looked at. Due to the timeframe difference, I would get the market open to around about lunch time (GMT) before wandering off to bed. I rarely missed a day. I sat and watched it all, candle by candle. No alarms set to tell me when a zone was being tickled. It was dinner at the screen.
Besides the inevitable numb bum, what I didn’t realize at the time was that I was getting to know the market through an interactive osmosis. I would not have said that at the time, basically because I didn’t understand it all enough to see that it was happening.  
Now the interesting thing is that if the Aud/Usd (A$) had not come along, I wouldn’t have realized this to be the case. It was in seeing an entirely different market that I began to appreciate the fact that I had actually started to see the Ftse markets “personality”. This was a really great thing to acknowledge.
What is also intriguing, is that I felt so uneasy and uncomfortable on the A$ for quite some time. I didn’t appreciate or understand this at the time, however after watching and interacting with the Ftse for many months, I was in fact relating to a new “personality” in the A$. The way it wiggled unhinged my Ftse derived sense of safety (without knowing so).
I don’t recall how long this went on for as I have no record of it in my trading journal, simply because I wasn’t aware of it to write anything down. In casting my mind back, I would say that most of last year was spent being uncomfortable with the A$. I had come to like the notion of a market with its previous day’s highs and lows, open and close. All very neat it feels.

Then over the break time something very interesting took place. A few days before Xmas, I was out walking and rolled my ankle on the edge of a pathway. At the time it seemed just a simple strain. About 24 hours later, my ankle looked like a balloon, with a very painful knee as well. The outcome was that I spent around 2 weeks being quite immobile and very home bound.
I had planned to not look at charts during this time, so as to have a break and freshen up for the New Year. Instead, to combat boredom, I did very little else but….yes you guessed…..look at charts.
To inject some newness into this enforced lay-up, I chose to do some investigation and branch out into some other currency pairs, working out zones and seeing what then transpired based on the trading plan. Part of the reason for this is that I have wanted to find a market in which to trade during the daytime here. Given that I am in the Asian session during this time, then price action can be very (very) slow and tried to find the better preforming pairs during this period. By the time that DT got back online in January, I had logged up lots of hours on a couple of forex pairs. So much for the trading break!

In an interesting reversal, I now find myself rather disconnected to the Ftse and its personality and the A$ seems far more familiar to me. The only reason that seems plausible is that due to the many hours spent looking at the forex market over the Xmas period, that I have now shifted my identification to the A$. I have truly come to see that each market has its unique characteristics and what that author was meaning by becoming a specialist (thou far from it I need to say).
The only way to know a market, as far as I can see, is to spend many hours engaging with it. It was I feel a really great exercise to go thru, firstly because I can see that I have gained a level of understanding and secondly, I have enough experience now to be able to discern the different qualities that each market has.
The other aspect to this is that because of my initial YouTube training, lurking in the back of my mind was this constant…… “What about all the other markets”. This thinking was constantly dispersing my attention that I was “missing out on something”, which was completely incorrect.
I feel that the best way to describe this is through that old chestnut….. “It’s about quality …not quantity”.
Amazing what a bung ankle can do!
Till next time

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