Thursday, October 22, 2009

Becoming better trader

Many people started with trading or investing on stock exchange for one simple reason - to make money. This reason is valid, but will it help one to survive out there? I don’t think so and there are numerous reasons for that.

First and the most important is that one doesn’t have any experience or knowledge about the game and still wants to play with the pros. Following the same principle - Would you take boxing match against world champion and, on top of that, would you expect to win it? Would you expect to go into surgery and do heart operation and expect to be successful? I guess not. So, why trading is any different?

To become profitable trader one must invest time. First on to do list is to read as many books as one can. That way one will develop very broad knowledge about what is going on. Only after extensive education one will be equipped to make his conclusions on what is to be liked, if anything at all. Following step is to read as many book as possible on specific field of interest.

However, if one after all the reading realizes that one doesn’t like anything related to trading, then do something else.

Finally, after one finds niche and market that one wants to trade, that is when one more educational effort is to be undertaken as one has to find out as much as one can about it. After all of that, paper trading for few months in real market and day-to-day conditions is to be taken seriously, simulating trading as much as possible. Please note: It will never be the same with money on the table, but please try it.

So, let’s refresh - We want to trade to make money.

From day one money was not made, while a lot was spent on books and courses, while precious time was spent too. That is correct way, as at the beginning one should forget about making money. One should focus on becoming better trader; one should focus on following his system 100% of the time, while finding better ways of trade execution. Making money is result of all actions previously stated – it is not a cause! Simply, if one focuses on efforts to make money, one is placing the cart before the horse. One must focus his attention on improving his trading. To make money one must forget about making money.

Of course, one shouldn’t get stuck in his head. It is very beneficial not to get caught up daydreaming about all the different things one could do when first 1000 points winner is made. Grand plans and spreadsheets considering development are not to be created. Those activities may seem intelligent, but they don't actually help one become better trader and all they do is keeping one stuck.

Although, the road to making money may seem long, the process of getting there is actually quite simple: One should do whatever it takes to make a daily habit of improving his knowledge, even if baby steps are being made at first.

Again, this is marathon, not the sprint.

Trade with trend!

6 comments:

Liquid Trader said...

I dunno - I have to add or argue something here and that is being a good (or better) trader counts for diddly squat if you cannot preserve your gains and turn them into long-term wealth.

A lot of traders mock the idea of wealth or capital preservation or management arguing that they can make more money by simply ramping up the size of their positions.

It doesn't matter how good you are or you THINK you are - if you are simply trading for bigger and bigger profits then you are creating a recipe for disaster in the long run

dong dong23 said...

tory burch outlet
tiffany outlet
ray ban sunglasses outlet
toms shoes
louis vuitton bags
cheap oakleys
nike sb
longchamp handbags
louis vuitton outlet
michael kors outlet
replica watches
fitflops sale clearance
coach outlet store online
toms shoes
kobe bryant shoes
instyler curling iron
michael kors outlet online
air jordan pas cher
kevin durant shoes 8
coach outlet
michael kors outlet
nike air max
louis vuitton handbags
nike roshe flyknit
michael kors handbags
jordans
longchamp bags
replica watches for sale
michael kors handbags
louis vuitton outlet
ray ban sunglasses
michael kors outlet online
christian louboutin shoes
coach factory outlet
kate spade
rolex watches
burberry outlet
jordan 3 infrared
coach factory outlet
20165.13wengdongdong

ninest123 said...

chanel handbags, gucci outlet, michael kors, louboutin outlet, louis vuitton outlet, oakley sunglasses, prada outlet, oakley sunglasses, nike outlet, ugg boots, uggs on sale, ray ban sunglasses, longchamp pas cher, oakley sunglasses, nike air max, louboutin shoes, burberry, louboutin, polo ralph lauren outlet, longchamp, louboutin pas cher, longchamp outlet, louis vuitton, ralph lauren pas cher, tiffany and co, air jordan pas cher, jordan shoes, tiffany jewelry, nike air max, kate spade outlet, christian louboutin outlet, louis vuitton outlet, replica watches, prada handbags, cheap oakley sunglasses, louis vuitton, ray ban sunglasses, ugg boots, longchamp outlet, sac longchamp, oakley sunglasses, polo ralph lauren outlet, nike free, nike free, tory burch outlet, replica watches, air max, louis vuitton, nike roshe run, ray ban sunglasses

ninest123 said...

michael kors outlet, kate spade handbags, true religion outlet, nike air max, coach outlet, ralph lauren uk, timberland, michael kors outlet, michael kors, hollister pas cher, michael kors, air force, michael kors outlet, nike roshe, tn pas cher, north face, coach purses, nike free run uk, hogan, ray ban uk, north face, vans pas cher, mulberry, michael kors outlet, sac guess, ugg boots, new balance pas cher, michael kors, nike air max, true religion jeans, hermes, replica handbags, true religion jeans, true religion jeans, michael kors outlet, vanessa bruno, nike blazer, hollister, burberry outlet online, coach outlet, michael kors, burberry, nike air max, lululemon, converse pas cher, lacoste pas cher, ugg boots, abercrombie and fitch, oakley pas cher, ray ban pas cher

ninest123 said...

herve leger, converse outlet, p90x workout, ralph lauren, mcm handbags, nike air max, new balance, hollister, gucci, birkin bag, chi flat iron, louboutin, ferragamo shoes, oakley, ray ban, hollister, nfl jerseys, converse, asics running shoes, hollister, ghd, longchamp, wedding dresses, soccer jerseys, iphone cases, insanity workout, north face outlet, vans shoes, giuseppe zanotti, baseball bats, abercrombie and fitch, reebok shoes, vans, nike trainers, nike huarache, north face outlet, mac cosmetics, valentino shoes, nike roshe, instyler, bottega veneta, mont blanc, soccer shoes, nike air max, jimmy choo shoes, timberland boots, lululemon, babyliss, celine handbags, beats by dre

ninest123 said...

montre pas cher, ugg pas cher, moncler, louis vuitton, bottes ugg, coach outlet, canada goose, thomas sabo, pandora jewelry, barbour, links of london, toms shoes, moncler, moncler, replica watches, juicy couture outlet, swarovski crystal, juicy couture outlet, canada goose, pandora charms, canada goose outlet, wedding dresses, pandora jewelry, louis vuitton, marc jacobs, lancel, canada goose outlet, canada goose, louis vuitton, canada goose, ugg,uggs,uggs canada, moncler, moncler, moncler outlet, ugg,ugg australia,ugg italia, pandora charms, canada goose uk, barbour jackets, karen millen, swarovski, doudoune canada goose, louis vuitton, hollister, sac louis vuitton pas cher, moncler, moncler, supra shoes, ugg boots uk