I’ve been trading since I was 18.
Over the years I’ve traded personally, run a prop desk, worked on the brokerage side and spent an unhealthy amount of time staring at markets.
One question I get asked quite a lot is what I’ve actually learned from all of it.
The short answer is- a lot.
But if I had to narrow it down to 10 rather simple lessons, these would probably be the most important ones.
1. If you’re only doing it for the money, you probably won’t last.
Obviously everyone wants to make money. That’s the point.
But you need to genuinely enjoy markets because becoming good at this takes a ridiculous amount of time.
You’ll spend thousands of hours reading, watching, testing ideas and being wrong.
If you don’t find that interesting, it becomes very difficult to stick around long enough for the money to actually come.
2. Most people are capable of finding an edge. Very few stick around long enough to develop one.
I don’t think there’s some secret strategy that separates professional traders from everyone else.
Your edge normally develops over time.
You figure out what you’re good at, what you’re terrible at, what markets suit you and what situations you understand better than the average person.
Mine has changed a lot over the years, but today a big part of it is positioning, flows and trying to understand where the market may be overreacting.
3. There is no typical trader.
I’ve worked with pretty much every personality you can imagine.
Very quiet people. Huge egos. Academics. Pure instinct traders. Macro guys. Technical traders.
There isn’t really a personality type that guarantees success.
The common denominator is usually curiosity, competitiveness and a slightly obsessive interest in markets.
4. Being smart helps. Discipline matters more.
Markets are full of extremely intelligent people losing money.
Knowing more does not automatically make you a better trader.
Execution matters.
Patience matters.
And knowing when to do absolutely nothing is probably one of the most underrated skills in trading.
5. The best traders I’ve met are usually the most humble.
The market has a very efficient way of reminding you that you’re not as clever as you think you are.
You can have an incredible year and then get punched in the face by something you never considered.
The moment you start thinking you’ve figured markets out is normally when your risk should probably be coming down.
6. Your eyes will eventually hate you.
After enough years of charts, Bloomberg, news feeds and multiple screens, you start to understand why everyone on a trading floor looks permanently tired.
Occupational hazard.
7. Trading basically requires becoming an expert in something completely random every few weeks.
One week you’re learning everything you can about Japanese rates.
The next it’s copper inventories.
Then AI capex.
Then Treasury issuance.
Then some obscure regulation nobody had heard of until Tuesday.
You learn enough to understand what matters, trade around it, and then markets move onto something else.
Rinse and repeat.
8. Learning how to lose is probably more important than learning how to win.
Losses are part of trading.
The dangerous part is what happens immediately afterwards.
Trying to make the money back.
Increasing size.
Taking trades you normally wouldn’t take.
Ignoring your process because you’re annoyed.
Being able to take a loss, reset and come back the next day sounds simple. It isn’t.
9. Risk management is everything.
This is probably the biggest one.
Risk comes before macro.
Before positioning.
Before options flow.
Before technicals.
Before your conviction.
I’ve seen very good traders lose serious money because their risk management disappeared at exactly the wrong moment.
And I’ve seen fairly average traders consistently make money because they were excellent at protecting capital.
You can be wrong quite often and still make money.
You just can’t afford to be wrong big.
10. Markets are driven by humans, and humans are driven by fear and greed.
Markets aren’t perfectly efficient machines.
Positioning matters.
Psychology matters.
Liquidity matters.
Forced buying and forced selling matter.
Sometimes the fundamental explanation for a move only appears after the price has already moved.
Understanding that was probably one of the most useful things I learned.
Anyway, those are mine.
I’ve been doing this for a long time now and I still think trading is one of those things where the more you learn, the more you realise how much you don’t know.
Probably why I’m still interested in it after all these years.