| |
| |
|
WebsiteAlways |
|
The Secrets of the Super-Traders
The first and perhaps most important "secret" is to realize that your methodology or approach (no matter how good) is only part of being a highly 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 screw up a fantastic trading system. Conversely a talented trader can take a mediocre strategy and make money with it. Why? Please read on and I will explain. Many traders/investors that I have talked with think that to be a "Super-Trader" that they must possess some type of highly advanced trading techniques or software along with nerves of steel and a highly developed intuitive feel for the markets. In addition they think that these elite group, have some "inside information" that they don't. You will be relieved to know that the above is not necessary. There are actually only a few things that separate traders who consistently make money and those who don't. And here they are? * Skilled traders find a strategy or market pattern that offers a high probability for success. They make money by exploiting this edge over and over again. * Skilled traders never deviate from their methodology or "wing it". * Skilled traders never enter a trade without a entry and exit strategy. They know exactly when and where to cut their losses as well as taking profits. * Skilled traders never ever let a winning trade turn into a losing one. The easiest way to ensure that this doesn't happen is to place a protective stop at or a few ticks in the money once your position is up several points. * Skilled traders never hope, pray or wish that their stock would go up. They understand that when they are wrong they are wrong and the best thing to do is cut their losses short. * Skilled traders never trade with their emotions. They don't allow themselves to get caught up in the latest and greatest investment hype. * Skilled traders always have one goal in mind: To preserve their capital at all costs. They do this by never taking on too large of a position. A good rule of thumb to adhere to is never use more than 5% of your funds on any one trade. This way in the worst-case scenario the stock could drop to zero and your account would not be severely affected. * Skilled traders never get too greedy. There is an old saying that "Pigs gets fed and hogs get slaughtered". These traders don't try to make one big trade that will turn them into instant millionaires. They don't try to hit home runs, instead they understand that it is better to keep hitting singles and making smaller consistent profits. * Skilled traders enter and exit trades swiftly and decisively. * Skilled traders listen to no one else's opinion concerning the market or particular trade they are in. * Skilled traders are often contrarians. They will be buying when others are too scared to and sell when the crowd starts buying. That's it, the secrets to making big money in the markets. Perhaps that is a bit of a let down as you were hoping for something a bit more esoteric and complicated. Let me assure you that if you follow the above principles that you will take your trading skills and profits to a level that you never thought possible! This article is courtesy of Dr. Jeffrey Wilde, a trading veteran with 15 years of experience in all major markets. He is a trading coach to over 1400 traders in 38 countries. For additional info: http://www.win-at-trading.com
MORE RESOURCES:
Currency-Trading - Google News |
|
|
|
RELATED ARTICLES
How To Handle A String Of Losses Everybody hates to lose and unfortunately no one is blessed with the ability of foresight, therefore losses are an unavoidable part of trading. When we enter a trade we will either be right, or wrong, and even if we broke-even we'd still be classed as being wrong - as nobody enters into a trade just to break-even! When unsuccessful traders encounter a string of losses they begin to engage in self-destructive patterns that help them escape the pain they are experiencing. Forex Signal Services What are Forex signals? Forex signals are paid services offered by some brokers and independent Forex annalists. Companies that offer forex signals monitor and analyze the market for you, providing you with their data via desktop alerts, email or even SMS and pager alerts. Forex Made Easy for Everyone Forex made easy is as simple as you would want it to be. The foreign exchange market is a worldwide market and according to some estimates is almost as big as thirty times the turnover of the US Equity markets. An Evaluation of the Devaluation A Minister of Finance is morally right to lie about a forthcoming devaluation and a woman has the right to lie about her age. This is the common wisdom. Forex Trading Systems The foreign exchange currency market is the largest market in the world because it trades up to $1.9 trillion daily. New Opportunities with Forex Trading The simplest definition of currency trading is the practice of exchanging one country's currency for another country's currency. Basically, currency trading involves four main variables: currencies, exchange rate, time, and interest rate. Be a Smarter FOREX Currency Trader: Three Basic Principles Below I will describe three basic principles that may come in handy for currency traders. They are very easy to implement and potentially take advantage of as you will see. What is Forex Trading? Forex, or Foreign Exchange, is the simultaneous exchange of one country's currency for that of another.The way it works is an investor who wishes to purchase or sell one currency for another with the hope of making a profit when the value of the currencies change in favor of the investor. The Seven Most Traded Currencies in FOREX. Currencies are traded in dollar amounts called "lots". One lot is equal to $1,000, which controls $100,000 in currency. Why Forex Traders Plan To Fail Before They Even Place Their First Trade & How You Can Know It & ... Have you heard the wise saying that a trader who fails to plan, plans to fail? I have, and I was once that trader! However, did you know that even though traders who have constructed a plan, which incorporates their trading stategy (their "edge"), they have a plan that is likely to fail?If we look at all traders who participate in the market: we have one group that fails to plan and therefore plans to fail; another group whose plan is failed; and a third group who properly plans and therefore does not fail.Is it any wonder that the success rate for forex traders is so slim?Well it doesn't have to be. Trading Tips No 1: Learn How to Trade The Moment of Truth So you have learned how to trade the markets by mastering a few trading tools like Moving Averages, Channels, Stochastics, MACD, or RSI - that is a great accomplishment achieved by only a few. However, having the tools and rules to trade markets successfully, year in and year out, is only half of the challenge. Forex Options Market Overview The forex options market started as an over-the-counter (OTC) financial vehicle for large banks, financial institutions and large international corporations to hedge against foreign currency exposure. Like the forex spot market, the forex options market is considered an "interbank" market. Two Timeless Rules in FOREX Investing RULE #1) ~ Cut your losers; let your winners ride.One important thing that every new trader must know before entering this highly profitable business is that life is not perfect, even in FOREX land, and you should always know one fact: YOU WILL HAVE LOSING TRADES. A Look at Online Forex Brokers An online forex broker is a firm that facilitates retail trading using Internet technologies. Global Forex Trading (GFT), one of the popular online forex brokers. Forex Broker Involvement Optional To trade on the forex market, the largest financial market on the planet, one must use a forex broker. Not unlike a stock broker, a forex broker can also makes suggestions about which moves to make when exchanging foreign currency. 6 Critical Factors For Successful Trading Success in any profession can be broken down into a number of critical factors. Trading is no different. Trading Profitably on the Foreign Exchange Market You may be asking yourself "how does one begin to trade profitably as a currency trader?".First, it is important to closely monitor foreign equity markets to attempt to predict or model how their respective currencies will perform against other currencies, ideally, currencies that are not very closely related, nor proportional, to the former currency. Chinas New Currency Regime The base unit for the renminbi is the yuan, which is how the Chinese currency is most commonly referred to. The official ISO abbreviation for the yuan is CNY, but it is also commonly abbreviated in the forex industry as RMB. Crisis of Confidence in the EU The European Union (EU) constitution was dealt a double blow, first by a French "no" vote on 29-May and then by a follow on "no" from the Netherlands on 01-Jun. To add insult to injury, one low level Italian diplomat quickly called for a referendum in Italy to decide if a return to the lira was warranted. Choosing A Forex Broker With currency trading becoming ever more popular, the number of brokers is growing at a rapid rate. What should one look at when deciding which broker to open an account with? These are the important points to consider.
|
| Interesting articles | Home | site map | Link |
| © 2006 |
