Saturday, 16 November 2013

WHAT TRADERS CONFUSE WITH SUCCESS

Many new traders deceive themselves. They celebrate small wins. They look for the magic solution to making money through a full proof system. They believe a seminar or newsletter will change their life completely. . Well, there is none, there is simply trading robust methodologies that have an edge, while managing risk, and keeping the right mindset. Trading can be a very fruitful endeavour, but new traders need to quit looking to be given fish and learn to fish for their self. Don’t confuse these 10 things with trading success. New traders need to understand the difference between having a tug on their fishing line and having a boat full of fish.
1.       It is not the winning trading system that determines your trading success but your ability to follow it.
2.       It is not the big wins that make you rich but your ability to keep them and not give them back in losses.
3.       Reading great trading books will not help you unless you read the right ones and really practice their lessons.
4.       Mentors will not help you unless you follow their advice.
5.       All the training to trade will do you know good unless you put it into action in your account.
6.       A great methodology will do you no good if you do not have great risk management.
7.       Small winning trades will not make you profitable if you have big losses.
8.       Capturing bull market trends make no difference if you give back your profits in the next bear market.
9.       A 95% win rate does you no good if your 5% of trades that are losses are bigger than the 95% that are winners.
10.    Participating in social media does traders no good if they follow the wrong people and are in the wrong trading groups.


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