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If you have not done all of these things, we promise you that you are only hurting your changes to succeed. But, if you have come this far with us, you truly are on the path to success as a trader! |
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Now it's important to start talking about winning in the market. After all, it's profits we are after. |
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As Winston Churchill said: "It is a socialist idea that making profits is a vice. I consider the real vice is making losses." |
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To talk about winning, we want to start with some of our beliefs about trading: |
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Security prices are not random. There is underlying order to price movements that can be discerned. You CAN learn |
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Effective trading and investing can be taught. We have proven this time and time again over the years. |
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The psychological side of trading is more important than any trading system. Understand and adjust your state of mind, belief system, focus, and discipline. |
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Knowledge breeds confidence, confidence breeds discipline. You've learned that building one's ability leads to another capability. |
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To win as a trader, we think that you must first understand why so many people lose. Here are the most common barriers to successful trading: |
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Not defining the loss. The trader has no idea where to get out of the trade. Before entering any trade, define the downside and set the stop loss. |
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Not taking the loss. The trader wants to avoid the pain of a loss, which leads to bigger losses. Losing trades are a major part of trading. Take the loss when you hit the stop. |
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Not defining the profit. This is just the other side of number one above, the trader still doesn't know where to get out of the trade. Before entering the trade, define the target exit point. |
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Not taking the profit. This is a result of getting confused or greedy. When the target is reached, take the profit. The market may not give you a second chance. |
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Getting locked into a belief about the market. Here is where the trader starts destructive self-talk, like: "I just know it'll go up." |
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