The Biggest Trap When Reading Trading Books
Here’s the thing:
Trading books not only cost us money when we acquire them.
But also our time (unless you get them by other means for free… *wink* *wink*).
That’s why to make the most out of your time as a trader…
It’s crucial to learn how to use the books effectively and not just randomly squeeze some stock knowledge into your brain.
You must know the number one mistake traders make when reading a trading book.
Mistake #1: Finishing the book first before applying anything into the markets
This is important.
You have to accept that reading a trading book is a journey no matter how many pages it has.
So if you only start to apply concepts and strategies after you finished your journey…
You’ll be forced to piece the concepts together from the start, which you’d probably have forgotten already.
See what I mean?
That’s why the next time you open a trading book, you need to have these open at the same time:
So that whenever you encounter an interesting concept you think would benefit you, you’d apply it immediately to understand the concept fully.
In the end, it’s not about how fast you read but how quickly you apply.
Mistake #2: Reading a book not related to where you are right now in trading
Have you ever experienced a time when your brain discards the information immediately after reading something?
It’s like you don’t get what you’re reading or it’s unrelatable.
So, what’s happening here?
The reason is that the book you’re reading doesn’t match the stage you’re at as a trader.
It’s like you’re reading a college book while you’re still in kindergarten!
Now you’re probably wondering:
“Hmm, now that you mention it, what are the different stages of a trader, and how do I know which stage I belong to?”
I might be simplifying it, but it all boils down to these three:
- Stage 1: Newbie trader
- Stage 2: Wounded trader
- Stage 3: Pro Trader
Let me explain…
Stage 1: Newbie trader
Newbie traders focus mainly on strategy.
There are many things they don’t know and are too fixed on being scalpers or day traders.
They focus on rewards and not the process of operating a trading business.
Stage 2: Wounded trader
Wounded traders not only focus on strategy but now focuses on risk management as well.
These are the type of traders who starts knowing what they don’t see as they start experiencing painful losses in the markets.
The majority quit at this stage, but those who stay will start learning that trading is more than just the money and will begin to enjoy the process.
Stage 3: Pro trader
Pro traders successfully maintain the balance of focusing on strategy, risk management, and trading psychology.
These traders have finally achieved consistency and attained the “feedback loop” of learning and improving from mistakes.
Pro traders are also more focused on their growth as they continue the never-ending pursuit of learning what they don’t know.
So they start scaling up their trading businesses by adopting new strategies and trying out new things.
Now let me ask you…
What stage are you currently in right now?
If you answered that you’re still in a newbie stage, do not be ashamed of it.
Every successful trader was once a newbie!
But whatever your answer is…
I want you to remember it because it will let you discover suitable books based on your stage.
Let’s get started…