Did you ever realize when you go to a golf course your see people jammed at the driving range and wanna be golfers with their drivers trying to hit the ball 300 plus yards? Pretty common scene. I look at the packed in driving range and then take a glimpse over at an empty practice putting green. Typical scene as well.
The reason in my opinion is that putting is not a glamorous part of the game as it takes finesse and touch, but the driver speaks a loud language as you can GRIP IT AND RIP IT! Nobody seems to want to slow down and think and analyze the break of a putt. Too easy, right or is it too hard? Grip it and rip it or touch and finesse, which side of the fence do you swing on? Sounds like advertising doesn’t it?; as you never see commercials saying they have the best golf ball for putting; you only hear about the best ball that will ensure you drive it straight and long…mmmmm…
These things are not too much different than what you see advertised in trading the forex, futures or stock markets as well. Trade the reports!, Trade the FOMC!, Trade the Unemployment report with a Pro type of thing. CNBC even has a clock countdown before these reports are expected adding to the excitement. Advertising and marketing teaches you to go after in my opinion the wrong thing initially. Have you ever heard the saying “Drive for show and putt for doe $$”? Nobody seems to listen to those golf pros that shout those words. Wanna be golfers yell at their instructors to teach them how to hit the Big Dog like John Daly, Tiger Woods and now Rory Mcilroy.
Nothing feels better I guess than taking a big swing with those sledge hammer drivers in hopes of connecting to hit the long ball. I have watched people take a big bucket of balls and attempt swing after swing as balls fly way left and way right and some even dribble 2 feet away. Occasionally you see a nice one but then things soon get right back to the norm as balls fly way left and way right and dribble 2 feet in front again.
It is the same in trading, teach me how to make a million trading those FOMC reports or Unemployment numbers when the action is quick and fast and pays huge dividends. You hear slogans like ‘you don’t need to know anything or our software will do everything for you”…Warning!! Warning!! I cant say it enough times how this doesn’t prepare you for the other 23 hours and 59 minutes each day. The repercussions to your trading account trying to hit the long ball all of the time is a recipe for a disaster, because when you are wrong just once (and you will be), you wont come back. Begin to take notice on the fine print on the latter half of the popular saying; drive for show, putt for doe $$. Trading the financial reports day one during the volatile moments is so much like running to the driving range or golf course and picking out the driver first thing and trying to rip it down the fairway. Good luck trying that! As far as my eyes have seen from the one hit wonders that I have come across in the trading business is that they never produce lasting consistent results. Even when the one hit wonders connect, the greed consumes them and not long after you hear or read news of their bankruptcy.
I wonder why people don’t practice putting first or our trading equivalent with $0.10 pips per contract? The pendulum motion in a putting stroke is a fraction of the big driver swing but nonetheless the beginnings of the same motion. Just as a $0.10 pip per contract is the same game as the $10 pip per contract. Same price action just only a fraction of the cost while you gain your confidence and your swing.
As you control your putting rhythm and finesse you get better and better. You begin to place yourself in a position to sink the putt or at least get yourself in a 1 to 2 foot radius for a 2-putt at worse (a great goal!). Slow your roll so to speak that’s how we roll Reward yourself with the driver at the range or on a live round, if you can 2-putt everything on the practice green. Then begin to increase the pendulum motion at the range and hit the wedge, then the 9, 8, 7, 6, 5, 4, 3, 2 irons and then the hybrid wood, 3 wood and finally the driver (notice how its last). Your confidence will be better as you get in a groove with the easier to hit irons first. As you begin to trust your swing at the range you will naturally move up to the harder to hit clubs with experience and begin to create something that will last a lifetime and produce lasting results on the course.
Wait a minute; am I talking about trading? I think so…start with the motion of learning the environment on a practice account (practice putting green), once you know how to use the equipment start trading on $0.10 pips per contract (the irons) and then as you see progress you move gradually up to the $10 pips per contract trades (the driver). You will enjoy the “Show” and not get Teed-off in the beginning. Your friends will be green with envy, when you play it smart from tee to green and from open to close.
Whatever you decide to try; you can’t win, if you don’t play!! Prosperity is at your fingertips! All you have to do is grab it!!
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