The first and perhaps most important "secret" is to realize that your methodology or approach (no matter how good) is only part of being a highly successful trader. This applies to any trading style including, day trading, swing trading or position trading.
The simple fact is that a bad trader can screw up a fantastic trading system. Conversely a talented trader can take a mediocre strategy and make money with it.
Why? Please read on and I will explain.
Many traders/investors that I have talked with think that to be a "Super-Trader" that they must possess some type of highly advanced trading techniques or software along with nerves of steel and a highly developed intuitive feel for the markets. In addition they think that these elite group, have some "inside information" that they don't.
You will be relieved to know that the above is not necessary. There are actually only a few things that separate traders who consistently make money and those who don't.
And here they are?
* Skilled traders find a strategy or market pattern that offers a high probability for success. They make money by exploiting this edge over and over again.
* Skilled traders never deviate from their methodology or "wing it".
* Skilled traders never enter a trade without a entry and exit strategy. They know exactly when and where to cut their losses as well as taking profits.
* Skilled traders never ever let a winning trade turn into a losing one. The easiest way to ensure that this doesn't happen is to place a protective stop at or a few ticks in the money once your position is up several points.
* Skilled traders never hope, pray or wish that their stock would go up. They understand that when they are wrong they are wrong and the best thing to do is cut their losses short.
* Skilled traders never trade with their emotions. They don't allow themselves to get caught up in the latest and greatest investment hype.
* Skilled traders always have one goal in mind: To preserve their capital at all costs. They do this by never taking on too large of a position. A good rule of thumb to adhere to is never use more than 5% of your funds on any one trade. This way in the worst-case scenario the stock could drop to zero and your account would not be severely affected.
* Skilled traders never get too greedy. There is an old saying that "Pigs gets fed and hogs get slaughtered". These traders don't try to make one big trade that will turn them into instant millionaires. They don't try to hit home runs, instead they understand that it is better to keep hitting singles and making smaller consistent profits.
* Skilled traders enter and exit trades swiftly and decisively.
* Skilled traders listen to no one else's opinion concerning the market or particular trade they are in.
* Skilled traders are often contrarians. They will be buying when others are too scared to and sell when the crowd starts buying.
That's it, the secrets to making big money in the markets. Perhaps that is a bit of a let down as you were hoping for something a bit more esoteric and complicated.
Let me assure you that if you follow the above principles that you will take your trading skills and profits to a level that you never thought possible!
This article is courtesy of Dr. Jeffrey Wilde, a trading veteran with 15 years of experience in all major markets. He is a trading coach to over 1400 traders in 38 countries.
For additional info: http://www.win-at-trading.com
Foreign exchange market, or better known as FOREX, is the... Read More
FOREX is the world's largest and most liquid trading market.... Read More
A Minister of Finance is morally right to lie about... Read More
So you have learned how to trade the markets by... Read More
Do you think adaptation to the realities of the market... Read More
For the first time in several years the U.S. dollar... Read More
Forex made easy is as simple as you would want... Read More
For those unfamiliar with the term, FOREX (FOReign EXchange market),... Read More
The first and perhaps most important "secret" is to realize... Read More
What are Forex signals? Forex signals are paid services offered... Read More
Consider the following: As a trader you are in a... Read More
With currency trading becoming ever more popular, the number of... Read More
ISO 4217 is an international standard describing three letter codes... Read More
The recent upheavals in the world financial markets were quelled... Read More
The investor in the currency market takes for granted that... Read More
You know the old joke:"How do you make a million... Read More
The psychological aspect of trading is usually underestimated by those... Read More
All professional traders have a trading plan. Trading futures is... Read More
There are some common mistakes I've seen traders make in... Read More
I read on a bulletin board a traders comment that... Read More
The Forex Market-What, When and Why?Forex, FX and the Forex... Read More
Most new traders tend to focus just about all their... Read More
We all know when you go on a trip to... Read More
As 90-95% of new forex traders lose money within the... Read More
During my first year as a local (independent trader) on... Read More
If you ask me whether the market will have moved... Read More
With every passing year the interest in electronic trading is... Read More
To make a profit, in the FOREX, a trader can... Read More
Day trading is all about making buy and sell decisions.... Read More
There are lot's of Forex signals providers out there. New... Read More
Q1: When you consider that the foreign exchange market has... Read More
Forex option brokers can generally be divided into two separate... Read More
Forex trading, or foreign currency trading, has become a bit... Read More
Have you noticed that when someone's trying to sell you... Read More
What Is Online Futures Trading?A futures contract is an agreement... Read More
For those unfamiliar with the term, FOREX (FOReign EXchange market),... Read More
The essence of the FX2u Forex strategy is that it... Read More
The recent upheavals in the world financial markets were quelled... Read More
For those of you who are interested in forex trading,... Read More
Forex trading online is a fast way to use your... Read More
"Is it important to be creative in your trading?"I'm not... Read More
We all know when you go on a trip to... Read More
One of the best kept secrets in trading is that... Read More
One can learn forex trading as easily as one would... Read More
IntroductionThe exchange rate refers to the value of the US... Read More
Have you heard the wise saying that a trader who... Read More
The following situation happens quite often to many traders. Look... Read More
Profitable day traders recognize that momentum trading is among the... Read More
ISO 4217 is an international standard describing three letter codes... Read More
The following are some of the most common types of... Read More
The European Union (EU) constitution was dealt a double blow,... Read More
Are you looking into a career in day trading? In... Read More
Forex, or Foreign Exchange, is the simultaneous exchange of one... Read More
As 90-95% of new forex traders lose money within the... Read More
International commerce has rapidly increased as the internet has provided... Read More
The simplest definition of currency trading is the practice of... Read More
So you have learned how to trade the markets by... Read More
Countries devalue their currencies only when they have no other... Read More
What is Forex Trading?Forex, or Foreign Exchange, is the simultaneous... Read More
"FX" is an abbreviation of "forex" or "foreign exchange." Foreign... Read More
Profitable day traders recognize that momentum trading is among the... Read More
The Forex Market-What, When and Why?Forex, FX and the Forex... Read More
Are you thinking of entering the fast-paced world of day... Read More
The business world is a complex web of supply and... Read More
What is Stocks Trading?Companies throughout the world issue new stock... Read More
Momentum day trading can be extremely profitable when done correctly...Day... Read More
Currency Trading |