Trade Like a Traveler Not A Tourist
This is Part One of Three Part Series
Last week I spent several wonderful days in Singapore at one of Asia’s largest investment conferences talking markets and trading and it occurred to me that many of the processes that I apply to my travel are actually very good lessons that I should incorporate into my trading.
Whenever I get to new place be it Madrid, Dubai or even Des Moines Iowa, I strive to always be a traveler, not a tourist. In order to do that well, the first and foremost thing you need to do is reconnaissance. As soon as I unpack I step outside and try to walk in every possible direction, getting a feel for the lay of the land.
In Singapore which along with Dubai is the land of the shopping mall, I was surrounded by not one, but two massive malls in the Marina bay district. I needed to change cash and since I was completely off my timezone I woke up early and walked both malls end to end before any of the shops were open. It took me about three hours to fully orient myself amidst the maze of multiple levels, tunnels and various connections between all the downtown properties and the Suntec convention center. But later on when the shops opened it took me 3 minutes ( I timed it just for fun) to find the moneychanger booth from my hotel room.
I think the lesson is clear. When we start trading the process can be overwhelming. You need to learn the platform, the market, the quirks of your forex broker and the pitfalls of whatever system you are trading. Instead plunging in head first it pays to reconnaissance the whole market, first on demo then of small real money account. At first you will make many mistakes and will take hours to accomplish even the simplest tasks, but after while the market will become familiar and you will be much more at ease with the whole process. It is often said that familiarity breeds contempt, but when it comes to trading I think familiarity actually creates comfort which ultimately gives you the confidence to trade well.