Corey Rosenbloom teaches how if you build confidence in your trading success, you can make confident trading decisions.
My guest today is Corey Rosenbloom, and we’re talking about building confidence as a trader. It’s critical to your success, and we’re going to talk to him about how he did it and how he recommends other traders do that. Corey, talk about how you build confidence in your trading strategies and yourself as a trader.
A lot of it comes from experience, which is kind of a difficult way to explain it. How does one get experience in trading? It’s by doing. A lot of times it’s simulated trading or just starting out trying a new strategy, and building on success. So going to The Traders Expo, reading a book, reading about an indicator, a strategy that interests you; learn about that as much as possible. Different environments where an indicator works, different environments where it does not work as well.
So just focus on one concept that relates to you, and as traders we’re all different. Maybe we’re forex traders, maybe we’re swing traders, ETF traders—I’ve tried a lot of different strategies. So you don’t wake up and say I’m an ETF trader and that’s all I am. It may work for a little bit, it may not. We’re all individual and different. So my biggest advice is to find a strategy that works, find a market that works with your individual risk tolerance, with your individual perceptions of risk. Are you a risk taker? Are you a risk avoider? So that’s going to be a major theme.
So find strategies that work for you, and then build upon that slowly. Don’t try to just implement everything in a single book that a trader reads or an expo that they attend. Don’t go out and try everything at once. Focus on one component, maybe in simulation, build upon that and then add to it as you grow in that experience. That helps a lot with confidence.
How about trading size? Starting small and having some wins, maybe some small loses. Does that help me build confidence?
Absolutely. A lot of traders come in and they want to make as much money as possible. There’s nothing wrong with that at all. Traders do make a lot of money, but new traders need to raise their experience. A lot of times the strategies will stay the same. A bull flag is a bull flag, and it has been a bull flag for decades so it probably will be the same in the future. The head and shoulders. These popular patterns, popular indicators—they’re not likely to change in large ways in the future. So learn as much as possible, and then get the experience with real trades.
There is a difference in simulation and real trades, absolutely. Just starting out small, building upon experience and having the goal not being insane profits, large profits quickly within the next day after reading about an indicator. Growing small and building upon that, and that’s going to be the most important. The market will still be there. Mark Douglas in Trading in the Zone mentions the market is a river of opportunities, and the experience shows that it is. It’s complicated. It’s not easy, but there are plenty of ways to make money in the markets. Just finding that right match and building upon that little-by-little, day-by-day, week-by-week and month-by-month.
Corey, thanks for being here.
Thank you, Tim.
