There’s a huge difference between carrying a stethoscope and being a doctor.
In the markets, it’s trivial to execute buy and sell orders, but that doesn’t make you a trader.
Trading is easy when you trade with inconsequential amounts of money.
It’s dramatically harder when you set out to trade with significant capital (whatever amount that might mean to you).
For every strategy you trade, you should have a path to confidence.
What questions would you need to answer to trade it with bigger size than you are now?
The first question I ask traders is:
How do you know your strategy has an edge?
If you aren’t thinking about that question – and charting out your path to confidence – then you’re putting a ceiling on how good you can be.
-Dave
