Most likely you’ve never heard of three sisters named Susan,
Judit and Sofia Polgar. Next to you, they probably have more to do with your
success as a trader than anyone else. I know that’s a pretty bold statement,
but it’s true none the less. So who are they and how can they have such an
impact on you if you have never heard of them.





When the three sisters were still young, their parents
decided to try an experiment with them. The thesis statement for the research was
simply “Geniuses are made, not born” The girls were educated at home and were
specifically taught to play chess. Each of the three sisters are currently
internationally ranked chess players with several titles for each of them, as
well as Grandmaster status.



As it turns out, science is now proving the Polgar parents
correct. One scientist currently studying how people become experts in their
fields is K. Anders Ericsson. In his research, he has found specific traits in
people that are highly successful in their fields and has been able to lay out
specific guidelines for achieving greatness.

First the research states that three conditions must be met
for someone to be judged an expert, and they are:



  1. The expert consistently out performs their peers.
  2. The outcome of the experts efforts must be concrete.
  3. The expertise must be able to be measured and
    replicated in the lab.


So what was formula that the research found exsisted in
almost every expert they tested and researched?



DELIBERATE PRACTICE



 That’s it. Nothing more, nothing less! To quote Dr. Ericsson, “Deliberate
practice is different. It entails considerable, specific, and sustained efforts
to do something that you can’t do
well-or even at all.” What does this mean for you as a currency trader? How can
deliberate practice be implemented to improve your trading? Here are a few
suggestions.



  1. Find the records of traders that have won contests and
    recreate their trades. Detail everything you see that made it a good trade. If
    you don’t see why it was a good trade, learn more about it. In other words, try
    to figure out what was going through their minds when they took the trade.
  2. Listen to the trader interviews on Dukascopy for any
    strategies they are using that you might implement in your trading. For instance,
    a recent trader talked about how she had trouble watching multiple pairs and trading
    them all. To solve this, she trades just one currency pair, but goes in with
    everything she has.
  3. Understand the math behind some of your favorite
    indicators to find out how their creators intended them to be used, nut just
    how followers have been using them. Did you know that when Wilder first created
    the RSI he used it on only four setups: tops, bottoms, chart formations and
    failure swings? Nowhere does he ever mention over bought/sold conditions. He
    consistently talks about the interaction between how the RSI looks and what
    price is doing.
  4. Hit the back tester every chance you get. The more
    setups you see, the more likely you are to recognize that great setup the next
    time. It won’t always work out the same but you will know what to accept and
    how to trade it.
  5. Finally, get some stats under your belt. Understand
    mean, median, mode, standard deviation, variance, z-test stat, t-test stat,
    distribution, skewness, confidence intervals and hypothesis testing.


Will all this make you a millionaire guaranteed? Nope! However,
I can promise you won’t ever become one without doing these things. Deliberate
practice is practicing the things you don’t do well, or at all. It is not
practicing the things you already know. Anders Ericsson’s article can be found
online for free. Comment below and I’ll send you the link.