To Win in the Financial Markets You Have to Go Back to Basics

1) The have put their time in learning their craft. Everyone was a newbie once. Everyone got sucked in by software, seminars, gurus promising easy riches. The winners used this as a starting platform to work out what did and did not work and progressed from there. Like a good doctor, lawyer, engineer, the good trader as put his due in both hours, tears and money and now they are comfortable knowing how their system works.

2) They have patience. If everything does not line up they will not trade. They actually do not trade often. The amateur trades any old signal. The professional will trade only the "almost sure thing." All the winning traders I came across were very selective. Be it if they traded intra day or from monthly charts. They had the discipline to do what is right not what feels good.

3) Focused. Most great traders traded for a living. Not all. But I'd say 90% did it as their main source of income. If you are good enough and with time you should be doing this. I guess it cuts your bridges and makes you focus.

4) Money management was very important. Taking small losses when they are wrong is part of the business. Taking big losses was not. They concentrate on being in the game in 20 years time instead of going all out now to make millions overnight. They treat it like a real business. There will be ups and downs. You have to withstand losing or flat periods. But what you can never do is take big risks.

5) They trade the right way. What's the right way? It is simply having a good method they are comfortable with. Trading it day in and day out. Not getting upset with losses or excited about winners. Taking small risks. Cutting losses early, letting winners run. Not jumping from method to method if they hit a sticky patch. Never being persuaded by others to take a signal they would not have otherwise taken. In short, take all the emotion out of trading and contracting on the long term not the day to day week to week fluctuations.

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