“What advice would you give to a novice trader?” by Jack D Schwager

This was taken from the book “The New Market Wizards”, it’s one of the questions posted by Jack D Schwager to Gil Blake. And this was his answer:

“There are five basic steps to becoming a successful trader.

• First, focus on trading vehicles, strategies, and time horizons that suit your personality.
• Second, identify non-random price behaviour, while recognizing that markets are random most of the time.
• Third, absolutely convince yourself that what you have found is statistically valid.
• Fourth, set up trading rules.
• Fifth, follow the rules. In a nutshell, it all comes down to: Do your own thing (independence); and do the right thing (discipline).”

Awesome advise.

For your info, “The New Market Wizards” is a compilation of interviews by Jack with some great/top traders who constantly out perform the market. Do get a copy if you’re interested to find out how the big boys make their money. Check out the reviews, the numbers don’t lie.