A few days ago, I met 3 ex-floor traders near my office having their lunch. They were trading out of Ong First arcade specialising in US interest rate contracts. One of them is doing well and is a mentor/partner/employer to the other two traders. We exchanged greetings as usual and I asked the two students how have they been doing so far. They jokingly said that their mentor taught them only 80% of his skill and holding back 20% like some Chinese Kung Fu Masters. That's why they are still struggling.
I rebutted them instantly, as a stakeholder their mentor would be more than willing to transfer his knowledge and skill to them but unfortunately their absorption rate were only 50%. They should be grateful that their mentor is willing to put in time and effort to teach them. Their mentor would be proud of them if they can be successful traders and he would also benefit, it's a win win situation.
The fastest way to successful trading is to learn from those who are doing well in their trading, of course it's their trade secret and not many are willing to teach as their students might turn out to be their biggest competitor later on especially in a small and tight market. Personally, I feel the market is big and there are so many contracts available now, with Internet technology, we can trade in any major exchanges around the world.
Not all traders can be good mentors, some are only half past six. A good mentor should be one who is consistently profitable, having a good trading system and sound money management. Recently, a trader from the arcade told me she was busted after trading for nine months despite having a mentor. I felt sorry for her because she was not taught sound money management as the mentor himself consistently trade to the maximum position available for his trading margin.
What is the "Holy Grail " to successful trading? In fact every trader know the secret but just simply unable execute it consistently, that is "cut your losses fast and ride your profit", so simple, found in every trading book, yet so difficult to master.
Profit to date is S$11,419.00. Holding long 3 Topix/Nikkei spread position.
I have not perform up to expectation, much to catch up.