The number one way new traders fail is by counting the money that could be made on the trade when they should be focusing on how much they could lose on the trade.
To succeed you must be able to accept the risks and apply money management techniques such as stop loss orders, max daily loss limits, and account draw down rules.
We’ve all heard the saying…
“The trend is your friend until the end”
In this post I outline techniques for identifying the trend, getting in, and staying in until it fails.
Do you want to become a successful trader?
The following is a list of articles, books and audio clips that I used to kick start my trading, you may find them useful in your own trading.
It is important to make the distinction between trading vs. investing. You will be hard pressed to find a trader who is not also an investor, but not all investors are traders. As a matter of fact, if you throw all traders and investors together, traders make up a mere fraction.
One of the best parts of trading is to be able to work according to your own schedule. Frankly, it’s not even work when you love what you do. Yet a “typical” trading day becomes almost boring over time. I say this because your strategy and rules become so ingrained in your subconscious that you simply act the same way in each situation according to your plan.
The main reason people fail at a new venture is a lack of experience. Entering the world of trading, you are up against the best and brightest minds in the world that have years and year of experience on top of you. The #1 tool that can help speed up the learning curve is the implementation and use of a trading journal.
Here are some links to my 2009 Trader’s Expo presentation on Creating A Trading Plan. Feel free to use them as a GUIDELINE.
You will find them most helpful if you modify them to fit your own personality. They are yours to use for free.
