When trading goes well, you feel great. When trading goes poorly, it feels like
a disaster. Most traders who are successfully initially end up losing all their
gains – and more. To be successful, you have to acknowledge this pattern… and
then break it.
The following are key ways successful traders differ from
losing traders:
1)Losing traders lack proper preparation and a solid
game plan. Most losing traders are short-term and day traders. Their lack of
success is due less to the time frame they trade within, and more to their lack
of preparation and discipline.
2)Losing traders tend to be
under-capitalized. There are two reasons for this. The first is that traders who
take excessive risks while operating with small amounts of capital are more
likely to lose their stake more quickly, and also to react emotionally to any
loss. The second is that all traders will experience loss; the greater the
capital reserves, the more likely a trader can accept small losses and
capitalize on winning trades.
3)Losing traders use complex systems or
rely on outside recommendations. Winning traders tend to use simple techniques;
techniques that they have developed on their own, from experience, that fit
their own style and personality. Successful traders understand that the only
important outcome is to make money – the complexity of the system used is
irrelevant. What matters is what works.
4)Losing traders often rely
heavily on computer-generated trading systems. Software tools can be extremely
useful, but only if you understand the way data is analyzed and how conclusions
are reached by the software. Successful traders use any tools that are helpful,
but they also understand precisely how and why those tools work.
5)Losing
traders try to forecast market trends. Successful traders follow the market in
real-time, and create appropriate strategies. By responding to irrational buying
or selling with a rational and disciplined strategy, winning traders increase
their chances of success. Losing traders try to predict the market; successful
traders follow the market wherever it goes.
6)Losing traders focus on
winning trades, and maintaining a high percentage of winning to losing trades.
One losing trade can wipe out a number of winning trades. Successful traders
focus on minimizing the loss from losing trades, from getting solid returns from
winning trades, and maintaining good risk to reward ratios. Successful traders
track returns and profits, not “wins” and “losses.”
7)Losing traders
sometimes execute trades based on emotion alone. Winning traders accept their
emotions, put them aside, and assess current market conditions.
8)Losing
traders want to be “right.” Successful traders see trading as a business, and
focus on making money. Losing traders enjoy the feeling that a good trade can
create; successful traders enjoy growth in equity.
9)Losing traders
constantly adopt new or “hot” strategies, especially after bad trades.
Successful traders evaluate bad trades, attempt to learn from them, and adjust
their current strategies and trading styles accordingly. The most successful
traders use a consistent system they have learned to rely on and they fully
understand.
10)Successful traders assess all aspects of profitability.
Losing traders ignore costs like commissions, systems, or data acquisition.
Successful traders seek to maximize profits by increasing their gains and
reducing their costs. Successful traders focus on
profit.
"What Takes Some Successful Traders A Lifetime To
Achieve Could Take You Just A Few Days... Or Less!"
HOME
Advertorial 1 - Introduction
Advertorial 2 - The Basics of Analysis and Rational Trading
Advertorial 3 - Basic Principles
Advertorial 4 - Characteristics of Successful Traders
Advertorial 5 - Playing to Your Strenghts, Overcoming Your Weaknesses
Advertorial 6 - Winning Psychology
Advertorial 7 - Avoiding Common Pitfalls
Advertorial 8 - Sound Money Management
Advertorial 9 - Trading Systems
Advertorial 10 - Final Words
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