Traders’ Greatest Investment: Chart Time

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If you have just started to learn to trade the market, the most important thing that you need to do is to invest in Chart Time. Like it or not, the more you look at Charts, the more you’re building that experience you need. While this is something relatively simple, you’ll be surprise to see many traders jumping into the market with real money and blowing their trading account in a blink of an eye. And this is done with very limited chart time behind them.

So, every time you feel like you are ready to trade the real thing, ask yourself again, do you have enough chart time?

Practice, Practice and Practice!!

10000As they say, if you do the same thing for 10,000 times, you eventually become an expert at it. This applies for all sports, hobbies or any professional discipline. It goes without saying for Traders who are learning to trade the Financial Markets. If you are actively participate in the financial market, you’ll eventually become a professional trader. Of course, the term “enough” is fairly subjective and that will be on a case by case basis.

Unfortunately, there is also a common theme amongst new traders who are constantly looking for new things in the market place. They keep taking in new information but they forget to digest them before taking in more. In the end, there is an over-load of information that causes major conflict when these traders make decisions.

So this is my advice, take in one information at a time.

  • If you’re learning to trade reversals, only take reversal trades until you’re good at it.
  • If you’re learning to trade trend continuations, only take reversal trades until you’re good at it.
  • If you’re learning to trade breakouts, only take breakout trades until you’re good at it.

I think you get the picture.

The beauty of Chart Time

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Irrespective of what you’re trading/ practising  you’ll end up looking at the charts – especially if you’re a technical trader. Essentially, you’ll end up building your own chart experience.

The beauty of this is that you’ll start to familiarise yourself with chart patterns and you’ll be unconsciously learning how to read Price Action (see article). You’ll pick up patterns that you didn’t even realise have names in text books and you comfortably give them your own nick names. You’ll start to collect patterns or habits in the market that you believe will repeat again. Since you may not have read about them in your Trading School, you’ll end up calling them your Gut-Feeling.

Some traders start to appreciate Support and Resistance levels and are able to pick them up quicker and quicker.  Others just understand how indicators work better and they will eventually understand how indicators behave based on recent price action.

Of course, you’re not going to get there until you’ve had enough chart times.

Conclusion

This article is for the serious traders. There’s no such thing as a short cut to fortune. Sure, some people will have talent that might help them develop faster. However, without sheer hard work and focus on building those chart experience, even the most talented traders will fail in the long term.

Another thing about building Chart Time is that you can still do it using a demo account. There is no such thing as “I must trade real money” to be able to learn. A demo account is a perfectly good example of how you can build chart time and learn without getting hit financially by the market.

Thank you for reading and Happy Trading!!

 

2 Comments

  • JM

    Reply Reply March 29, 2013

    Good one!! It does take a lot of work… but once you’re there!!
    Keep it up!

    • Alwin Ng

      Alwin Ng

      Reply Reply March 29, 2013

      Can’t agree more. 🙂

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