Indeed, we have another successful prop trader! I know you probably think we might have some secret mint or something. Or it could be they have common discipline practices that the astute readers would have noticed with many prop trader articles by now.
This article will take a different spin as I’m sure as many of you by now have likely noticed a trend with a number of our prop trader articles which has likely prompted a question in your head. First, I will address the trend you noticed, indeed quite a sizeable number of our portfolio managers that passed the evaluation of our prop trader accounts have some sort of experience, or exposure to, in the stock market.
So you would be naturally wondering: do you need stock market experience to do well in forex? Does stock market experience give you some special edge?
The stock market and the currency market are 2 separate capital markets. With that in mind, I want you to think about this for a moment. Does the stock market experience provide you with some unique edge?
Let me give you a moment.
Have you thought about it yet?
The answer is obviously no.
Even our newest prop trader turned portfolio manager Nancy Keller stated they tested the forex market with a demo account despite studying the stock market longer than the forex market.
However, the elephant in the room is, why do a lot of successful prop trader accounts come from those with stock market experience? That is a valid question.
It is all about context. Forex is relatively new in the retail market, historically speaking. Before, people could only trade in the stock market. Getting involved with forex was not all that common. Now it is common, hence you see more people jumping into forex.
Further, it is not necessarily people who have stock market experience who do better. It is people with trading experience who do tend to better. Regardless of the instrument, you trade, the way you trade with responsible risk management and psychology still applies. So whether you are a prop trader trading stocks or a prop trader trading forex, the notion of trading sticks with you.
It is still all about how well you manage your trade plan, your psychology and overall your discipline.
If you are a beginner, CTI does offer education from the ground up showing you how to achieve this.
However, if you're not quite a beginner and feel you will not benefit from education, but rather from a mentor to help steer you in the right direction we have you covered; even if you would like your own trading psychology barriers covered. (Like your own Wendy Rhoades from Billions!)
Without further ado here is Nancy’s interview