Reply to Traders and Trader Wannabees
From
Phil Madsen
February 6, 2010
This is my general reply and apology to people who have contacted me privately to share their trading experiences and advice, or to ask for information about trading. I post it here to save time. Instead of sending the same response to individuals again and again, I provide a link to this page.
Trading is a highly individualized activity. Because no two people are alike, no two trade alike, nor could they even if they tried. While I appreciate the time and kindness offered by people who send me their trading experiences and advice, I heed first the advice of the great trader Jesse Livermore and others, which is to "play a lone hand."
I intend no disrespect toward you as I develop my trading plan (such as it is) and ways (such as they are). While it is very kind of you to share your experiences and advice, I can only do what all traders do, which is trade in one's own way.
I know how good it feels to talk with others about trading but resist getting drawn into such conversations because the great traders advise against it. While it would be fun and perhaps even helpful to exchange information and ideas about trading, I don't because the great traders say not to.
To the people who ask me for advice or information about trading, please understand that I am the very last person you should ask. I am new to this game, a game in which very few succeed. Of those who succeed in a big way, almost all of them say it took many years of hard work to develop themselves into successful traders. When people ask me for trading tips or advice I give none as I am not a good source.
Trading is a difficult and dangerous game. If I am not careful, I could lose a whole lot of money to the highly-skilled people on the other side of my trades who mean to take it. With that in mind, I am playing a lone hand while learning the ways of the masters.
Who are these masters? You can get to know some of them in Jack D. Schwager's books; Market Wizards: Interviews with Top Traders and The New Market Wizards: Conversations with America's Top Traders.