Josh Kaufman: The First 20 Hours – How to Learn Anything
An interesting video on learning.
This is an interesting concept worth exploring some more. To be specific, I wonder if it is possible to break down the core elements in trading into parts that newcomers can learn more quickly and effectively.
One thing I know for sure though is that blank staring at the computer screen is not training yourself to understand a market. That does not contribute to your 10,000 hours to become an expert in trading unless you really focus and pay attention to what you are observing.
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Great video. I took the four steps and explained what a trader would have to do if they are learning from scratch.
1) Deconstruct the skill: What exactly you want to be able to do when you are done? Break the down to pieces.
a) You want to be able to execute trades when the edge ( bias) presents itself every single time. You want to put a mechanical risk management strategy in place ( i.e.on the ES, 6tick and 10 tick target with 8 tick stop, 1:1 R:R). There is no tinkering with the trade once it’s placed. This removes the psychological aspect once the trade is placed.
2)Learn to self-correct: Learn enough to know when you are wrong.
a) Keep a journal ( including stats) of the sample of first 40 trades you have taken based on the edge. Study them to see if the edge is working? Does it require fine-tuning? Is one of the hypothesis( trade plan) coming true?
3) Remove Practice Barriers: a)Before trading, homework ( trade plan ) is a must. There should be no distractions from doing your homework. During trading, there should be nothing distracting you.
4) Practice 20/100/10,000 Hours: a) It’s simply taking the trades, journaling and studying results to improve the process.
Good post!