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The purpose of Trading for Purpose

One of the ways to make extra money? Definitely the online trading

It takes, however, years of experience - of study of financial markets - to select an efficient trading system and truly understand how to invest in stocks, commoditiescurrency, forex and so on.
That’s the goal of Trading for Purpose: help you not to make the same mistakes we did, at least not all the mistakes we did, during our learning process.

To do this, through our web platform we want:
  • to show the trade that we do, and make public our result
  • to illustrate the techniques and the tecnical analysis that we have selected in our development curve and we think are the most appropriate to trade efficiently
  • to provide tools which, if used appropriately, greatly improve one's trading performance

Trading, or to find the earth where we didn't expect it.

We might like it or not, admit it or not, but in the hard reality of facts trading is a trip toward an uncertain destination. In our hopeful minds, instead, the destination is known and defined, the path is clear and the route is traced in detail. With the fantasy we're already there: a life of freedom, serenity, no hassles at all. Few preparations, a shabby little boat and we're ready to cross the immense sea of financial prosperity.

It's a pity that, as always, words and deeds are... oceans apart. Let's see why: in his beautiful Trading in the Zone, has described with great accuracy and realism the typical learning curve of a trader. Roughly, Douglas divides the development of the curve in three phases:

Step 1: Beginner's luck or 'how beautiful it is to sail across the ocean'

Often those who start trading from scratch shove two or three positive experiences that encourage them and make them believe trading is easy.

Actually, the happy debut is typical of any human activity and Mark Douglas explains why. The first time we do something, we have no memory of any previous negative experience, we haven't yet made any mistake, so we are not afraid. That's why we act without anxiety, naturally follow the flow and reap some easy successes.

Crossing the ocean doesn't seem so dangerous and difficult as some describe it. And then we ask ourselves: why the heck we didn't do this before? So many dreams would become real! And the boat goes on, or better, the mind goes on...

Step 2: The reign of fear or 'how deep is the ocean'

Unfortunately the happy debut, like the black hair of biblical memory, is just a breeze, a slight breeze. As soon as we begin to make mistakes, trade after trade the fear seizes us and the original state of grace goes to hell: from now on, every time we are going to push the button something inside of us wonders if once again the bloody market will shake us out just to spike in our direction without us, or if the trade we didn't dare to execute will be the best ever seen in the last 150 years! So the ocean isn't so charming anymore, it is an unfair and cruel monster that arbitrarily punishes us for the pure taste of seeing us suffer. And we, in our boat, we swear and curse desperately between one wave and the other. Have you ever felt like that?

The stage of 'innocence' is over and that of 'experience' begins. Unfortunately this stage is much longer than the previous one and also the one from which many of us never get rid of (please note that according to statistics over 90% of traders lose money on the financial markets).

You can get a bit better or a bit worse depending on the circumstances, but the fear remains, and the magic of the beginning is just a memory.

Step 3. The 'zone' or 'discovering America on the road to Asia'

So, while we left the harbor thinking of our edenic destination, now we realize we shouldn't focus on our imaginary rewards, but only on sailing to the best of our abilities, taking care of all possible dangers and learning the lessons that the ocean impart us every day.

And, like magic, profit materialize. It's incredible, one of those strange paradoxes of fate: the more you look at profits, the less you do, the less you look at them, the more you make. If there was at least an instruction manual...

In his book, Mark Douglas explains that the great sport champions often get into a special psycho-physical condition, called 'the zone'. In this 'zone' every single play, even the more difficult, succeeds very naturally, almost effortlessly. It is the final phase of the development curve, when one returns to the state of grace experienced as a beginner, but this time at a higher level of awareness and control. It is not easy to get there, but it is even more difficult to remain there.

In order to reach this level one needs dedication, seriousness and, let's face it, a lot of time. Yes, because making experience is not enough, one must also let it settle and prepare the ground for the subsequent developments.

The settling process

Developing trading strategies is a tough task: it takes years and years of commitment to sediment the experience, learn to manage emotions (gain or lose money by trading triggers emotions among the most intense that a person can prove in its lifetime), select the trading system that actually work, get in sync with the beat of the markets and ... finally ... relax.

Unfortunately it isn't possible to skip one or more of the three phases described by Mark Douglas. There's no discount: that is the process and we have to follow it all from start to finish. All we can do is to shorten the time passed in the middle phase, the longer and more painful of the three. If a trader can find a guide, someone who has already walked the path and knows how to avoid the bigger traps, he can probably shorten the time spent in the frustrating phase dominated by fear.

Our purpose

This is exactly the Trading for Purpose goal: we cannot guarantee the permanent success to anybody. We cannot even guarantee the attainment, before or later, of the desirable state of 'trading in the zone'. All we can do is to avoid that others fall in the same traps in which we have fallen, speeding up as far as possible the learning process.

To do this, through our web platform we want:

to show the trade that we do, on a daily or weekly basis, explaining clearly why we do them. This way we also make public our result, our personal rate of winning and losing trades, which we believe is a very important info (otherwise, what are we talking about?). It has to be clear that if you want to make the same trades that we do (it is called copy trading), we don't mind at all: we don't encourage you to do it, but we have nothing to complain about it.

to illustrate the techniques that we have selected in our development curve and we think are the most appropriate to trade efficiently. We often hear the sacred mantra that each one has its own trading strategy and what works for one may not work for another, etc. etc. True, but maybe it has become a cliché. Actually it is equally true that some techniques work well for everyone: for example, properly drawing a trendline, a channel, a pitchfork or an horizontal level is useful to all traders, without exception, and we challenge anyone to prove the contrary. As well as, conversely, in our opinion some very popular techniques don't work at all and don't work for anyone. They are the 'traps' the path is scattered with and from which we should keep at distance. For example, we don't think that following slavishly the indications of an esoteric-named oscillator would be a healthy habit... If it were that easy, the percentage of winning traders would be 90% and not 10%...

to provide tools which, if used appropriately, greatly improve one's trading performances. We are not speaking about indicators, oscillator, exoteric secrets or other mumbo-jumbos, we are speaking about serious statistical tools such as seasonal analysis, positive or negative ratios, total option volume, and so on. Only tools whose validity has been repeatedly confirmed by experience.

Here is revealed, then, what is the real purpose, the goal of Trading for Purpose: help you not to make the same mistakes we did, at least not all the mistakes we did. Hope you'll appreciate...

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Trading for Purpose RT @ttp_mailus: Usually the oil stocks index turns slightly earlier than crude oil itself. Recently XLE (blue line) turned south at end of…
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