Independent Traders develop a unique way of trading based on their strengths and their weaknesses. They might trade the very same systems as others, but there might be quite a difference in how they actually trade them in the markets. Why is this so? Because, you as a trader wants to capitalize on your strengths and compound your edges all based on your individual trading game.
What Characterizes an Independent Trader?
As an Independent Trader, personal style is important. As more and more experience is gained with a trading system, the trader develops a personal style that fits their strengths. For example: If the trader likes to actively engage in the markets and enjoys quick feedback, then they probably perform best when trading the shorter timeframes. They might have developed a preference for a particular system or a specific setup of that system. They might have found out that their intuition helps them make decisions. Other traders are doing great with a robust and streamlined scanning process.
Apart from style, an Independent Trader has put a lot of thought into defining a personal trading game that places them in a favorable position. They know that, within the boundaries of this game, they have an edge in the market. Their personal trading style can then be executed.
The last criteria is the ability to fine-tune and align both their style and trading game so they nicely fit together.
The big advantage in trading is that traders can define their own favorable rules under which the trading game is played. If the rules of the game are not met, the trader can choose to stay out of the market until conditions change for the better. I shared more on this topic in a previous article, “Your Game, Your Rules: Winning Your Trading Game”.
(See all reference links to previous articles at the end of this piece.)
What is the Fastest Way to Develop?
To develop into an Independent Trader not only takes time and effort, but also it follows a certain development process. While this process used to take many years, it can now be achieved in less than a year.
The main steps are:
1. Adopt (or develop) a trading system with an edge that fits you.
2. Learn how to flawlessly execute that system by applying the concepts of Deliberate Practice. See previous article “Deliberate Practice Helps You in Achieving Trading Mastery”
3. Build as much experience and expertise as is possible, within a short time, using a trading simulator.
4. Develop your individual trading style as you discover your trading edges (healthy benchmarking with a group of other traders is very important to speed up the process).
5. Define your personal trading game and fine-tune it so it fits your style.
6. Discover your ideal mental trading state that gets you into a mental state of detached indifference (regardless of the trade outcome).
7. Work on your limiting beliefs—those that have been a detriment to your trading.
For more information, read about the “Three Keys to Reaching Your Full Trader Potential” as outlined in an earlier article.
Role Models for Independent Traders
A good number of Independent Traders have emerged from last year’s Futures Trading Systems Workshop. Each one is capitalizing on their strengths by following their own personal trading game.
During a recent VTI Webinar, we invited four of those Futures traders for a panel discussion. Interestingly, though they all trade the same systems, the individual trading games they play are very different.
Below is a summary for each trader and the type of Trading Game he or she plays:
You can listen to the full webinar, “Meet the Futures Traders” here.
Who knows? You might be in a similar situation to some of our Futures panel guests. Watch the webinar to understand how they trade and why. Learn the differences in their trading game and how they capitalize on their strengths.
You can make your first step towards becoming an Independent Trader as well.
Come and join a new group of traders as Gabriel teaches the next Futures Trading Systems Workshop starting on September 29th.
I look forward to meeting you online soon,
Gabriel
PS: Watch the Futures Trader Development Series (playlist below) to learn how you can best progress.
Feature Reference Links: Previous Articles