There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits

Sunday, March 16, 2014

Long Haul

There are many approaches to learning and skill development. A lot of studies have taken place to know what makes an expert an expert. Many of the findings are extensively researched and used in high performance skill development training, especially in sports

Many of the findings are equally applicable in trading. For example Fitts and Posner (1967) suggested that the skill development process is sequential and moves through specific stages. According to the study there are three stages to learning a new skill. It is not possible to bypass any of the stages

Cognitive Stage
  • Decision fatigue as it demands high degree of focus
  •  Lack of synchronization and appear confusing
  •  Numerous errors, typically gross in nature
  • Inability to determine cause of errors or correct them
 Associative Stage
  • More consistent
  • Attentional demand decreases
  •   Fewer errors and better at detecting cause of error 
  •  Begin to develop appropriate error correction strategies 
 Autonomous Stage
  • Highest level of proficiency 
  • Attention shift to strategic decision-making  
  • Consistent
  • Confident
  •  Make few errors and can detect and correct them.
Which stage are you in? Anyway it is going to be a gradual painful progression. There are no short cuts. Be prepared for the long haul.


  1. Sir good morning and happy holi to you and your family thnx

  2. sir,
    Wish u a happy holi...


  3. hi
    im new bee for trading.
    i have started trading from last 4 months.luckily i have got lance
    beggs blog and urs early before losing and frastrated.
    during early days of trading i have lost a little money trading
    using chart patterns and indicators.
    now after reading and practicing ytc price action and ur DPs book
    i,m getting consistent profits with 5 to 10 lots.
    but im confused to select broker please help me regarding this.
    right now my broker taking 1 paise . i.e 3 points per lot for both
    b/s at current nifty price.

    my friends told me that in zerodha v cant get more lots get executed some time
    and there is no support if any software problems

    please suggest me whether to continue with present broker or to
    change to any one who u suggest



  4. hi sir,

    In daytrading.. which profit/loss ratio is good?
    1:1, 2:1, 3:1 or trailing stoploss... which one is giving more winning percentage.

    for example

    1) stoploss 2: target 2
    2) stoploss 2: target 4
    3) stoploss 2: target 6
    4) trailing stoploss for every rise
    which is good..

    pls reply...
    thanks in advance

  5. Sudarshan

    Try different brokers
    IMO Zerodha and TSO are good


  6. AtoZ

    Have a method to book profits
    You are not in control. You may need to accept what the market gives. I will prefer to trail once in profit


  7. Hi ST,
    Wonderful post...
    Correct "It is not possible to bypass any of the stages" but to advance from one stage to another we will have to stick to the chosen method. If we hop from one method to another, we may keep doing that and never be able to go through these stages. Why there are very few successful traders? We would find plenty of good doctors, engineers, bussinessmen around us, but traders, where are they?

    I believe i have chosen the correct method to reach to Autonomous Stage. I will stick to it. I will make sure i survive the gradual painful progression.

    Thank you ST.

  8. Hi Rajesh,

    Please clarify brokers IMO and TSO.

    Thanks and Regards,

  9. Rajan

    IMO = In My Opinion
    TSO =


  10. I think I have crossed cognitive and in associate stage right now. Doing trades which end up breakeven after txn costs so not paying too high a tuition fees for learning now.


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