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obviously he learned something. Every trader I have ever worked with has had the same type of experience. My mentor, an S&P trader, lost $180,000 during his first three years, before he even made a penny. He then went on the make, over $1 million per year since 1991. My point is this: Your first few years are a learning experience; no more, no less. Regardless of whether you make $10,000 or lose $10,000 during your first few years, if you can survive the experience, you will be a better trader because of it. |
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So, working with so many traders, I started noticing a pattern of success and failure. As it turns out, successful investors have at least five things in common. And traders who experience failure have at least five things in common. |
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Neal: What are all of these things in common? |
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Mark: Let's start with the successful traders and talk about their commonalities. Successful traders generally trade a specific market or a group of markets that are related. An example is the S&Ps and the bonds or, as a group, the financials. They tend to get out of bed every morning and already know how they're going to trade for the day. |
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1. They have an absolute trading strategy and follow it to the letter. |
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2. They find something that works for them and do it over and over, like a cookie-cutting concept. |
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3. They are emotionally, physically, and financially capitalized; consequently, they are not afraid of risking small amounts of money. They have more information. They tend to have access to quotes and upcoming reports. |
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4. They don't talk about trading; they just do it. |
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5. They focus on the trading aspect, not the money, because the money will take care of itself. |
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As a rule, they are much better outfitted for success! |
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