dayThere is a common misconception that some people are born today trade. In my experience, after knowing hundreds of day traders, I have never met a trader who could naturally trade without any training. I will readily admit that some day traders are quicker than others to learn the basic principles of trading, and I would also go so far as to say that some traders have a difficult time learning even the rudimentary principles of traders. After all, we are all gifted with different skill sets, and we are not all set up to be futures traders.

This contrasts sharply with some other fields of endeavor. For example, I have a friend who is a natural born golfer. For as long as I have known him he could hit a golf ball out of sight. He can shoot even par no matter what the weather conditions. He can even shoot par when he is intoxicated, which in itself is a miracle. For whatever reason, this relationship does not hold true in the trading venue. Perhaps it is because of the natural illogic of trading systems, or perhaps trading does not necessarily lend itself to natural ability. I don’t have the answer to this question.

I am an eternal optimist, and have found that most individuals who are willing to put a certain amount of book work, a lot of practice, and dogged determination can learn to day trade very effectively. I must add one caveat, however: I have met several people, a very small percentage, who simply were unsuited to trade, and it became apparent very early in their training that trading just didn’t suit them. Again, this is a very small percentage.

It is my opinion that great day traders are trained, seasoned and combine years of experience before they become truly great traders. Unfortunately, trading on Wall Street is a very stressful field of endeavor and most day traders exit the trading game before they realize their potential. Most major investment bank trading rooms are filled with young traders, with a a seasoned veteran overseeing operations of the trading operation. I am 52 years old, and my limit for trading is about four hours. My mind tires and my concentration wanes, but the trades I make are generally well thought out and years of experience keep me out of the bad trades and help me to recognize the good trades.

And that is the rub. As a new trader you are going to make some bad trades, it’s inevitable and it is okay, if you learn from your mistakes. On a given day, there are many set-ups that look enticing, but there be one factor that precludes that trade from being successful. Your ability to discern that single negative factor is what will make you a good trader.

I want to make one very important point, though. You don’t have to be a great day trader to make money in the market. If you have learned a good system, have the proper self-discipline, and can execute your system with a high degree of accuracy…you can be very profitable in your trading endeavor. You don’t have to be great, just good. On the other hand, if you stick with trading for a long while you have the potential to be great. The downside to this situation is humorous, though. You will be the only one who knows you are great. Unless you are trading for a large investment bank, you will have to be content with knowing you are a great trader and leave it at that. But who really cares? As long as your futures trading account reflects the excellent results you are enjoying, isn’t that enough?

In summary, learn your system inside and out. In my day trading, I also learn a number of alternative systems inside out. Work on the self-discipline required to make your trading effective. Avoid entering trades based on emotion. Further, always work to improve your trading, keep a journal of your trades, and review the trades that did not work out so you don’t repeat them. And most importantly, be persistent and dogged in your approach to trading, strive for perfection, even though perfection is nearly impossible. We all have the potential to be great traders, but most don’t reach deep enough to realize their potential. Be one of the few that reaches his potential.