Old and proven ideas should never be pushed aside. Rather, the old ideas that have not proven effective for many and yet continue to be the false information that is holding traders back from progressing towards a positive goal.

Some of these ideas are that the futures and commodity markets cannot be forecasted because the patterns are random. Other old ideas are that you cannot make a success at trading unless you know the fundamentals of the market you wish to trade. And there is the heavy reliance many have for common indicators, such as the moving average, bands, oscillators and the like. Sure they have their place in market analysis, I for one certainly find some of them very useful, but they fall short of the ideal. But they are not all one needs to know, and yet many believe they are. That old idea has got to go.

If you hold fast to these old ideas, you may be holding yourself back from reaching your full potential as a trader. False concepts and beliefs are negative ones, and negative ideas and beliefs can deaden your insights and blind your way.

The world around us is bigger than we can ever imagine, with its many secrets waiting to be tapped by the individual not afraid to break the mode of adhering to old ideas and take some radical steps. W.D. Gann was recorded to be such an individual, and reading his material is only part of the psyche that made up this man’s drive for perfection. He stepped outside the bounds of acceptable trading approaches and was greatly rewarded.

Many traders having a hard time gaining confidence in their own trading, and thus not achieving their personal goals in this business, often find themselves relying on others to tell them what to do. It is one thing to be taught by someone and another to allow someone to lead you by your nose every trading minute of your life. It is one thing to read books and newsletters that provide information content that may be useful and then make the final decision your own, than to simply enter and exit trades on the words of another without ever giving any thought as to what you just did.

If you are one who has very little confidence making your own trading decisions, then it is likely you are not working to break out of the mold that has so many trapped with indecision. It is time to break free and expand your horizons. Do something different, something that may even be against your grain. Weight trainers know that at times you are going to reach a plateau and not get any bigger or stronger. The solution to this problem has always been to change your workout routine and shock your body into reacting differently. This has proven quite effective in bodybuilding. Many trying to lose weight have found they will lose for a while and then stop at some weight. The solution has been to change your diet or eating times to shock your system into getting past the plateau.

Trading is no different. Because it is heavily psychological, our thinking may reach a plateau because we keep to old ideas. Now if you are happy with where you are, then by all means you don’t want to make any changes. A weight lifter may like where he is at, or maybe the person losing weight. No changes of routine needs to be done at that point. However, since we are addressing those who have no confidence in their trading and have reached a plateau in their trading skills and development, it is time to shock the system.

T. F. Ellis (1860) once said, “Knowledge advances by steps, and not by leaps.” Do not be overwhelmed by the amount of information available on trading. Be extremely happy it exists! Start studying subjects about trading that you never thought you would have before. Have you always stayed away from learning Cycle Analysis because of what Bob down the street told you a couple years ago, or what you read in some magazine or newsgroup? Then break free from listening to the Bobs of the world and do it anyway. Even if you do not become a cycle trader you will at least have expanded your horizon and given your body an extra boost to get past that plateau. But do not stop there, keep expanding, keep shocking your mind and body. Each plateau you overcome will bring you closer to becoming a more confident trader. It will also make you a better conversationalist over coffee or wine.

“Let knowledge grow from more to more, but more of reverence in us dwell; That mind and soul, according well, may make one music as before.” In Memoriam A. H. H. (1850)

Note: About the Author

Rick J. Ratchford is President of ProfitMax Trading Inc. He is a full-time commodity trader for his own account as well as assisting other traders. He has been a computer programmer for more than 20 years and a trader since 1990.