Special Guest Post from @travisharbauer

John Lee, professional trader and host of “Charts Gone Wild” on StockTwits TV, spoke with SMB traders Friday afternoon, and below are eight things I learned from his discussion:

[1] Keep it simple; don’t trade using an overcomplicated strategy. Lee’s 13-year-old cousin profitably uses his strategy and she’s learning more about the markets everyday.

[2] Trading is not something you try, it’s something you do for the rest of your life. Unlike golf or basketball, trading is not a hobby; it requires much more. If you’re not passionate about trading, don’t try it.

[3] Becoming an elite trader requires an immense amount of dedication and discipline in multiple fields. For instance, your chance of becoming a consistent trader is increased if you actively exercise and adhere to a strict diet… (Definitely an area for me to work on – no more McDonalds!)

[4] Read consistently. When the market is slow, you should be reading books and/or blogs. Lee read over a hundred books during two of his summers, and he insists that you should read multiple books a month.

[5] Ease into trading with more size. Lee discussed an example of how to slowly scale your trading to avoid any psychological drawbacks. Before you scale your trading, Lee insists you should understand how to properly allocate your trading capital and manage risk.

[6] Identify your trading style. Do you like trading in fast or slow markets? Lee discussed that all traders have unique trading styles and that you must figure out what kind of trader you are.

[7] Be independent. Lee passionately insisted the need to be an independent trader. Traders shouldn’t blindly follow other traders’ plays and should generate their own ideas. When discussing this opinion further, Lee posed the question what happens when the traders you use for ideas are gone? So are you…

[8] Understand the Kicker pattern. Lee is confident that the technical Kicker pattern produces one of the highest probability trades. During his discussion, he reviewed his kicker trade in TZOO.

Which of these are most beneficial in your trading?