To become a successful trader one requires three things.
1. Trading Strategy
2. Trading Tools
3. Trading Discipline
1. Trading Strategy : A trading strategy is governed by a set of rules that do not deviate. Emotional bias is eliminated because the systems operate within the parameters known by the trader. The parameters can be trusted based on historical analysis (backtesting) and real world market studies (forward testing), so that the trader can have confidence in the strategy and its operating characteristics.Although backtesting is no guarantee of future performance, it gives the trader confidence that the strategy has worked in the past
2. Trading Tools : Your trading terminal, your charting software, your internet connection, most important your brokerage plan.
Recommendation : Down load Chart Nexus for EOD research
Chart Nexus
or check EOD chart form icharts Web site
icharts
3. Trading Discipline : Your system will give signal but ur emotions will not allow you to execute order due to fear and greed this can only be overcome with experience. “Cut losses short; let profits run.” To Graduate as Perfect Trader you need three years of Screen experience, here your bank account is your report card.
Why Trader Loose !!!!!!!!!!!!
1. Over Trading : The one of biggest mistake trader does is over trading.
2. Tips/Advisory Services :Just think,why tips providers waste their time in giving tips to others, why not they use same tips for themselves and multiply their capital rather than begging small subscription charges.
Tips make you redundant. Your thinking gets paralyzed. You will never able to learn trading.
Before subscribing any Advisory services one must paper trade their tips for one month, if tips fail capital is safe.
“Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway. “
Warren Buffett
T I P = P I T
Trading is a zero sum game and here money goes from the emotional traders to the mechanical traders.
Don’t forget you are competing the highly skilled market professionals equipped with advance software like Algorithmic Trading system.
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