The Minimalist Trader: A Framework

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The odds are stacked against independent retail traders. This is not a secret. Yet every week since the beginning of time novice investors seeing dollar signs in their eyes have opened up brokerage or trading accounts and thrown their money at the “hottest” stock of the day, expecting to be rich instantly.

As we know, it very rarely works out this way.

In a historically perpetually rising stock market, you would think that everyone should be able to make profitable trades or investments over the course of their investing careers – if by no other reason than by accident. Why doesn’t this happen?

In a series of posts, I intend to explore the biggest obstacles facing Independent Traders and Investors and will hopefully provide some useful ideas for you to transform yourself into a Minimalist Trader. In the age of High Frequency Trading (HFT) and Algorithmic Robots, I truly believe there is no more important mindset than slowing down and trading smarter – not faster – if you hope to compete in this ever accelerating landscape.

Meet the enemies of the Minimalist Trader:

  • High Overhead
  • Over-trading
  • Trading with the Rent Money
  • Indicator Abuse
  • Cable TV Business News
  • The need to be “right”

I will tackle each of these killers individually over the coming days.

If you’ve been following my journey on this blog and/or on StockTwits for any length of time now, you’re certainly aware that I do not have all the answers, am frequently wrong, and don’t have anywhere near a monopoly on good ideas. This post – and really this website – is an exploration that I’m taking for everyone to see. I’m happy to share, and I’m equally grateful to everyone who has in turn shared with me. If this topic interests you and you have something you’d like to share, please drop a note in the comments section or catch me on StockTwits/twitter. I’d love to have some guest posters on this blog!

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Comments and discussion are encouraged. Please visit www.chicagosean.com and post your comment!

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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