The first and perhaps most important “secret” is to realize that your methodology or approach (no matter how good) is just part of being a 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 ruin a great trading system. Conversely a talented trader can take a mediocre strategy and make money with it. Why? Please read and I’ll explain. Many traders / investors that I have spoken with think that to be a “Super-Trader” that should have some sort of highly advanced trading techniques or software along with nerves of steel and a highly developed intuitive feel for the markets.
Furthermore, they believe that these elite groups, have some “inside information” that do not. You will be relieved to know that the above is not necessary. In fact, there is little independent traders who constantly make money and those who do not do. And here are? * Qualified Dealers to find a strategy or market model that offers a high probability of success. They make money this advantage over and over again. Qualified merchants * never deviate from their methodology or “improvising.” Skilled operators * Never enter a trade without an entry and an exit strategy. They know exactly when and where to cut their losses and take profits. * Never leave qualified operators always a winning trade turn into a loser.
The easiest way to ensure this does not happen is to place a protective stop at some ticks or money once your position is up several points. * Qualified operators never hope, pray or wish that their shares would rise. They understand that when they are wrong they are wrong and the best thing to do is cut their losses short. * Qualified operators never trade with their emotions. They do not cease to be current on the latest and greatest investment hype. Skilled operators * Always have one goal in mind: to preserve capital at all costs. They do not take too large of a position. A good rule of thumb to adhere to never use more than 5% of their funds on any trade. Thus in the worst cases, the population could be reduced to zero and your account will not be seriously affected. * Qualified operators never too greedy. There is an old adage that “pigs are fed and slaughtered pigs.” These traders do not try to make a big transaction that will make them instant millionaires. Do not try to hit home runs, but they understand that it is better to keep pushing the collection of individual and small consistent profits. * Operators qualified to enter and exit operations quickly and decisively. * Qualified operators to listen to anyone else of the opinion on the market or particular trade they are in. * qualified operators are often nonconformists. They will be buying when others are too scared to selling and when people start buying. That’s all the secrets to make big money in the markets. Maybe it’s a bit disappointing as you’d expect something a little more esoteric and complicated. Let me assure you that if you follow the above principles to take your trading skills and profits to levels never thought possible!