Guidelines & Procedures you Must Follow To Successfully Trade The Markets.
-Know What You're Doing Before You Act. Knowledge and practical experience in the markets are the most beneficial teachers. Although without the proper education before trading can literally stop you in your tracks right from the start. That's why you must find someone who has been doing it successfully and model their success - their trading strategies & techniques, etc. - a company like Trading Concepts, Inc. for example. See the paragraph entitled, "Learn From Role Models".
-Don't Put All Your Eggs In One Basket. One of the keys to success in trading is diversification. If you're a day trader you shouldn't be trading more than a few markets at a time. Master a few markets first, then when you start making money on a consistent basis you can venture into other markets. Start off small and concentrate and focus on a few markets until you master them.
-Always Know Your Place. You can not control the market. It will move regardless of what you want it to do - period. It is inevitable that hope, greed and fear will cloud your vision and cause emotional responses detrimental to your trading, that's why you must master your emotions (see Avoid Your Emotions).
-Never Try To Pick Tops Or Bottoms. This is not easy for anyone to try and do. It's much better to find the trend and enter at logical levels into the trend. Most beginners try to pick highs and lows using what they think are some "magical indicators". Our suggestion to you is to avoid trying to do this. Unless you've got a few years trading experience under your belt, simply leave this alone. You really have to be quick and nimble in attempting to pick highs and lows. Only with the proper training and experience would we ever suggest doing this. Even then it's difficult. So, find the trend (i.e. according to 'Trend Determination' - as taught in this Course) and enter at logical levels - you'll be more successful - we guarantee it.
-Only Trade The best Chart Patterns & Formations. If you're unsure of a trade set-up, chances are the trading pattern isn't crisp and clear enough to risk any money. If you're not sure of a trade, stay out and wait for a better trading opportunity. Do Not Overtrade and wait for the absolute best trade set-ups possible (try no to trade more than 6 markets at one time). In fact, trade as little as possible and only take those trades that are setting up the best - remember, look for only the best Trading Opportunities.
-Be Patient and Discipline In Your Trading Approach. Patience is a virtue, especially when it comes to the trading business. If you are not patient, the markets are sure to get the best of you. Waiting for those special opportunities to make money is what this business is all about. Discipline will help prevent you from shooting from the hip and help you stay with a plan of action (i.e. as taught in the Trading Concepts Lifetime Mentoring Program). Discipline will also help you in becoming consistent in your trading approach, which is very Important in this business. Like in any other business, both Patience and Discipline is a must.
-Act On Your Decisions. Once you've decided what to do - If you hesitate too long, chances are you'll miss a good trade opportunity. The key ingredient in becoming successful is being able to act on what you see. You will never make money by standing on the sidelines. Have a mind of your own and don't rely on anybody else for your trading decisions.
-Avoid Your Emotions when trading. Your emotions can be your greatest enemy. When trading, your emotions must be under control and must be ignored. Do exactly what you're supposed to do without your emotions altering your decisions too much. Sometimes this can be difficult to do, but when you've mastered this you've truly overcome a major hurtle in your pathway to success in trading.
-Develop Winning Attitudes & Behaviors. A good way of doing this is by reading about the worlds greatest traders. This will also help motivate you and show you that great fortunes can be made in this perfect business. I suggest reading "market wizards I & ii, Interviews with Top Traders", by Jack d. Schwager. Besides learning how to trade, you must also spend some time developing yourself - self control, patience, discipline and a positive mental attitude (pma), to name just a few. An Important aspect of successful trading is the trader, not necessarily the trading methodology (though that helps a great deal).
I truly hope you've enjoyed and learned a lot from this trading lesson. Please remember, there are many more to come in the following weeks, so please be on the lookout for them. And once again, please feel to visit my website: http://www.yourtradingconcepts.com/
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