Monday, 8 June 2009

You Too Can Be A Successful Trader

You Too Can Be A Successful Trader!
It's true anyone can win at trading yet approximately 95% lose
money. So what separates winners from losers? The answer is
simple - it's the mindset of the trader that determines whether he
will win or lose. Here we will look at obtaining a winning mindset.

First, I want to tell you a story which will illustrate perfectly how
important the right mindset is when trading.
Back in the 1980s A trading legend set out to show that anyone
could learn to trade and he taught a group of traders to trade in
just 14 days - the result?

They made over $100 million for him in 4 years and this group
became legendary.

If you read the story of the turtles you will see that the real reason
these traders succeeded was they had:
A simple robust trend following method which they all understood –
but Richard Dennis realized this was not enough, they would have
to apply it, so he taught them confidence in the method.

With this rock solid confidence they then could set about applying it
with discipline which leads me onto the formula for trading success:

A Robust logical simple method + Discipline to apply it = Trading
Of course if you don't have the mindset to apply your system with
discipline you have no system!

Discipline can be hard when your executing your trading plan and
taking loss after loss but you must stick through these periods to
emerge a winner. It requires a deep understanding of what you are
doing and holding your emotions in check which is not easy.

Most traders approach trading with totally the wrong mindset -they
think trading is a walk in the park.

Trading is not easy and you wouldn't expect it to be with the
rewards on offer but there is a huge difference between something
being impossible or achievable.

Richard Dennis probed that anyone could do it and think about it -
he taught traders with no experience, to make millions after just 14
days. Their success was NOT based on method alone - it was based
upon confidence and the discipline to apply it.

So instead of trying to take short cuts - learn trading the right way
and make sure you have a simple system, you are confident in and
can apply with discipline.

Does the above sound simple?

Yes, sure you have to do your homework and pay your dues - but
for doing so, you could be rewarded with a life changing income.

Think of how well the traders did in the experiment above and use it
as an inspiration to learn trading inside out to give you long term

Past Quotes from successful Traders
To be a successful trader, you have to be able to admit mistakes.
People who are very bright don’t make very many mistakes. In a
sense, they generally are correct.
In trading, however, the person who can easily admit to being
wrong is the one who walks away a winner. Besides trading, there is
probably no other profession where you have to admit you’re
wrong. In trading, you can’t hide your failures. Your equity provides
a daily reflection of your performance.
The trader who tries to blame his losses on external events will
never learn from his mistakes. For a trader, rationalization is a
guaranteed road to ultimate failure. - VICTOR SPERANDEO

All traders make mistakes, great traders, however, limit the

Successful speculation implies taking risks when the odds are in
your favour

Don’t force trades. Do not attempt to create an opportunity where
one does not exist.

Happy Trading!!

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