You can succeed in trading only if you handle it a serious intellectual pursuit.
Emotional trading is lethal. To help ensure success, practice defensive money management. A good trader watches his capital as a professional scuba diver watches his air supply.
Why do most traders loose out and wash out of the market.? Emotional and thoughtless trading are two reasons. There is another - that the Markets are actually so setup that most traders must loose money.
The odds are stacked against the trader. Trading is a zero sum game. If you make 10$, somebody has to loose 10$. Besides there is commission and slippages. A trader must bargain to get the lowest commission possible. Slippages also take shark sized bite of your account, as the filled price is different from the market price when you place the order.
The goal of a good trader is not to make money but to trade well. If a trader trades well, money will surely follow.
A successful trader has realistic plans. He knows his abilities and limitations. He sees what is happening in the market and knows how to react to it.
A loosing trader is one who overtrades and is money management is sloppy and he takes risk that are too big.
A trader who wants to survive and prosper must control his losses.
When you trade, you compete against the sharpest minds in the world. The field in which you compete has been slanted to ensure your failure. If you allow your emotions to interfere with your trading, the battle is over.
Most amateurs feel like geniuses after a few wins. Traders gain some knowledge, they win. Then the emotions kick in, and they self destruct. Most traders then give up their wins back to the market. The market is full of rags to riches to rags story. The mark of a successful trader is the ability to accumulate.
A sensible trader never risks more than 2% of his equity on any one trade.
Emotional trading is lethal. To help ensure success, practice defensive money management. A good trader watches his capital as a professional scuba diver watches his air supply.
Why do most traders loose out and wash out of the market.? Emotional and thoughtless trading are two reasons. There is another - that the Markets are actually so setup that most traders must loose money.
The odds are stacked against the trader. Trading is a zero sum game. If you make 10$, somebody has to loose 10$. Besides there is commission and slippages. A trader must bargain to get the lowest commission possible. Slippages also take shark sized bite of your account, as the filled price is different from the market price when you place the order.
The goal of a good trader is not to make money but to trade well. If a trader trades well, money will surely follow.
A successful trader has realistic plans. He knows his abilities and limitations. He sees what is happening in the market and knows how to react to it.
A loosing trader is one who overtrades and is money management is sloppy and he takes risk that are too big.
A trader who wants to survive and prosper must control his losses.
When you trade, you compete against the sharpest minds in the world. The field in which you compete has been slanted to ensure your failure. If you allow your emotions to interfere with your trading, the battle is over.
Most amateurs feel like geniuses after a few wins. Traders gain some knowledge, they win. Then the emotions kick in, and they self destruct. Most traders then give up their wins back to the market. The market is full of rags to riches to rags story. The mark of a successful trader is the ability to accumulate.
A sensible trader never risks more than 2% of his equity on any one trade.
