Deep practice rules that every new Forex trader should follow

This post is inspired by Danial Coyle in his famous book “talent code”. He visited every country around the world to find places he referred to as talent hotbeds. His findings were that talent isn’t born but it’s grown. Danial Coyle’s research got more popularity among the sport industry but it was intended for all high performance industries including trading.

Before jumping to the rules I’d like to discuss some of the major key trading differences from other mainstream businesses today, the reason is that in my personal experience it was very difficult to switch from believing that “trading is easy money” to believing that trading is “smart money”:

  • Time: Traders don’t get a fixed rate of return i.e singers get paid per gig & sales, soccer players get paid per month. The market is highly volatile for traders making it impossible to predict future results. A 20 point profit can be archived in less than 60 seconds, netting $200 in a 100k  volume respectively.
  • Activity: Trading isn’t like any other business, it is completely unstructured. No formal education  guarantees success, no obligations, no refunds and no insurance. At the same time it is highly competitive considering that in each and every point there’s transactions occurring between parties.

To create structure for this type of environment new traders need to follow the following rules:

Rule One – Chuck it up

Deep practice feels like a bit like exploring a dark and unfamiliar room. You start slowly, you bump into furniture, stop, think and start again. Slowly and a little bit painfully, you explore the space over and over again, attending to errors, expanding your reach in to the room a bit further each time, building a mental map until you move through it quickly and intuitively. The instinct to slow down is universal… In the talent hotbeds I visited, the chunking takes place in three dimensions. First, the participants look at the task as a whole as one big chunk, the mega-circuit. Second, they divide it into it’s simplest possible chunks. Third, they play with the time, slowing the action down, then speeding it up to learn it’s inner architecture.(Page 79-80)

Absorb the whole thing 

This means spending time staring at or listening to the desired skill-the song, the move, the swing-as a single coherent entity. People in the hotbeds stare and listen in this way quite a lot… “We’re prewired to imitate”, Anders Ericsson says ” When you put yourself in the same situation as an outstanding person and attack a task that they took on, it has a big effect on your skill.” (Page  80)

Break it into chunks

The goal is always the same: to break a skill into its component pieces (circuits), memorize those pieces individually, then link them together into progressively larger grouping (new, interconnected circuits).(Page 84)

 Slow it down

Why does slowing down work so well? The myelin model offers two reasons. First, going slow allows you to attend more closely to errors, creating a higher degree of precision with each firing – and when it comes to growing myelin, precision is everything… Second, going slow helps develop something even more important: a working perception of the skills internal blueprints-the shape and rhythm of the interlocking skill circuit.(Page 85)

Rule two: Repeat it

There is biologically speaking, no substitute for attentive repetition. Nothing you can do-talking, reading, imagining-is more effective in building skill than executing the action, firing the impulse down the nerve fibre, fixing errors, honing the circuit… what’s the simplest way to diminish the skills of a super star talent (short of inflicting an injury?)… The answer: Don’t let them practice for a month … It only requires that you stop a skilled person from systematically firing his or her circuit for a mere thirty days… Myelin is living tissue. Like everything else in the body, it’s in a constant cycle of breakdown and repair.

That’s why daily practice matters, particularly as we get older…. Repetition is invaluable and irreplaceable… deep practice… spending more time is effective-but only if you’re still in the sweet spot at the edge of your capabilities, attentively building and honing circuits. There seems to be a universal limit for how much deep practice human beings can do in a day… between three and five hours of the day, no matter what skill they pursue. People at most of the hotbeds I visited practiced less than three hours a day.(Page 87-89)

Rule Three: Learn to feel it

The point is to get a balance point where you can sense the errors when they come. To avoid the mistakes, first you have to feel them immediately…(page 90) Deep practice is not simply about struggling: it’s about seeking a particular struggle, which involves a cycle of distinct actions.

  1. Pick a target
  2. Reach for it
  3. Evaluate the gap between the target and the reach
  4. Return to step one (page 92)

This procedural mindset does in some way provide structure to effectively behave positively in an unstructured environment. For more information about the secrets of talent purchase you a copy of “talent code” on amazon or download below.

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Two important considerations before investing in the financial markets

1.       Why do you want to trade?

There are two very popular reasons people choose to trade

·         Money: there is no doubt about it, few professions can take someone from ridiculously low capital to extremely high levels of capital in a very short amount of time with very few barriers to entry.

People like Nicolas Darvas turned $30 000 into more than $2 million in less than two years, this is a significant reminder to us  all just how quickly extreme wealth can be created by a trader when all the pieces of the puzzle fall together just right.

You don’t have to start with a ton of cash or earn some degree of cash to trading your way up. You can run your trading career rather quickly and cheaply.

When one considers different ways to turn a small amount of money into an extremely large amount, trading is often considered the quickest and easiest way to get rich.

·         Freedom : The next appeal of becoming a professional trader is a promise of infinite freedom and self-reliance

When trading there is no boss to answer to, you can virtually trade from wherever you want. There are no employees or colleagues to worry about, you can trade from your kitchen in the evening and cook at the same time and nobody would tell you it’s not done that way. This kind of appeal is fueled by the idea of complete self-reliance.

As a professional trader only you is responsible for your success. You don’t have to convince your folks or partner that your idea is a good one. You don’t have to worry about an individual on the other end of the business deal living up to his end. When in the zone only your results matter, no other person can stand between you and your potential for success.

2.       Do you have the right resources?

Just like any profession, to begin this venture you need resources that allow you to be accountable.

·         Strategy: This does not only include reading price action and taking trades correctly, but rather a strategic way of governing yourself as a business individual. A method of preparing for your trading session, a method of handling your thought process during the trading session, a method of recording everything that happens during the session and reviewing records for gradual improvement.

·         Motivation: As mentioned above that most people are motivated by money and freedom, most professionals argue that these are not good motivation long term. There are many ways to be rich besides trading, they provide the same money and freedom.

Stay with me and share some great trading information, do you like this post? Please share with your facebook friends.

Review: CMTRADING AFFILIATE PROGRAMME

If you are new to the net you’re probably wondering, what is an affiliate? how do people make money from it? even better, what do you need to make it work? For the sake of this review I will not be giving text book definitions but tell you exactly how I do it.

First of all I had to figure out how to market. My mind map included a social media page, online forums, blogs and websites. I couldn’t use all of these traffic channels at once due to personal limitations, like the rich man said ” take the stairs”. I opened a social media page and started publishing content with my links embedded in posts.

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My job is to bring clients to the company, when clients are happy with the service to the point of depositing funds, I get paid commission as promised. CM Trading affiliates get paid $300 per client on their first deposit. New affiliates also get a dashboard that looks like the one above, my ultimate goal is to increase the o’s on the right. Excuse the 0’s on the right, it was the first day of a new month, stats get restored to 0’s every month. With the aid of my mind map I expand traffic channels so that the numbers can add up.

I know right now you’re probably thinking do you really get paid or it’s just one of the fungazi schemes out there. During the first week of every month, the IB department gets busy processing the stats, on the second week of every month they send all the invoices to the financial department, on the third week your paypal tells you got money.

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Join my elite team today, if you are not sure where to start just send me an email or comment below, I will help you by all means.

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