If you are a value investor, asking a momentum trader will be a total waste of time. When you have a set of firmly established rules, you will find that you do not need to follow outside opinions. If the answer is yes, pat yourself on the back as you are on your way to becoming a market winner (one of the few).
As you can see, it's not the system, but they operate a style of trading that they are both comfortable with and excel at. This trading style is not for everyone, but the point is, after years of trial and error, I have found a system that works for me, and I aim to become the world's best trader with this system. If you trade with a system that doesn't fit your personality, you'll never gain the confidence or the results to really make the big profits.
If you are a new trader or an unsuccessful one, I suggest you start by asking yourself. I will find a system that suits me and I will become THE world's best trader at this ONE style of trading.” But there is absolutely no point in making a plan for a trade if you are not disciplined enough to follow it.
Work Hard at Learning How to Trade Properly and Keep Working
If you do, then call me and I'll see what you have that no one else has. First, you will have to spend a lot of time analyzing yourself, your personality, find a trading style you are most comfortable with, learn how to trade properly, read, study, ask questions. Basically, you will have to start from scratch and build a system that suits you.
Once you develop a trading system that works for you and have the complete discipline to follow your plan, it's a constant battle to stay on top of your trading. Even when you've succeeded in becoming a successful trader, one fatal mistake lurks in the dark, waiting to befall you. Only by controlling your emotions and working on your trading will you avoid disaster.
Work to determine if you are willing to put in the time and effort to find a system that not only works, but fits your personality. Get a sense of how much time and effort was spent before they became successful, how many times they did. That way in the heat of battle and your system has just given you 5 consecutive losers, you know nothing is wrong.
I'm not a big fan of paper trading to find out how much progress you've made in trading. Simply because you have no emotions while playing games and controlling emotions separates the winners from the losers. You should have your own system that suits you and take small profits from the market.
If you still find yourself lacking the discipline to follow the cues, ask why. If you're still trading, you should be getting consistent profits from the market by now and know yourself well enough to keep learning.
Positive Self- Belief
If you look at your problem areas, you will find that they are rooted in wrong and limited beliefs. So if you are having problems with your trading results, examine your views on trading. If deep down you have negative feelings about trading or making money, or if you don't have complete confidence in the system you are following or in yourself, then you need to stop trading and go back and find out why.
I'm sure when they lose a significant amount of their capital, everyone else will be guilty, but deep down, if they analyzed their beliefs about trading, they would probably admit that they see it as a big casino. If your beliefs about making money are negative, how can you expect to make money from stocks. Usually one finds that a deep-seated, negative belief about making a lot of money has caused them to hit the self-destruct button.
How much time and effort do you think you need to put into a day's work to get a daily wage. I was constantly checking offers, calling my broker, reading reports, listening to the news, etc. If you think it's relatively easy to make 50% in the stock market year after year, with very low risk and only ten minutes of work a day, then good because it's possible.
Then this is what you're working towards (I know a lot of people will disagree, but first ask if these people are able to comment). On the other hand, if you believe that working just ten minutes a day for wages is a lazy path to success and you are uncomfortable with this, then you will have to resolve this conflict before you can achieve these results. When they go through a long period of losers, they begin to analyze their beliefs.
Above all, it must be said that it requires a lot of work (see the previous chapter). You will need to start by accepting full responsibility for your trading, be prepared to put a lot of work into finding and testing a trading system. . Only when you have complete trust will you be able to view your trading in points rather than money.
View Trading as a Score in Points and Not In Money
Forget about the money taking care of itself, it's all about those rules and how well you can follow them. I love this book so much because if you have read it as many times as I have (50+) you begin to realize how well this man transformed his trading from an emotional lost trader into a robot, disciplined, money , generate, machine . Apart from the usual acceptance of full responsibility, developing a system that suits him, planning his trades and a lot of initial groundwork.
The real reason he made so much money was because he never counted money in a general sense. He had some rules and if there was a buy, he put a percentage of his capital. Making a profit now Darvas now realized that although he had been so busy concentrating on following his rules, he had completely forgotten about the paper profits piling up.
When he received the telegram, he now knew that if he sold out, he would be rich for life (this was the 1950s). Every fiber in his body said "sell. In the coming weeks the stock continued to rise and made the decision to stick to his rules he was able to stick to and make a lot more. He had constantly calculated his trades on daily basis in money, I doubt he would have had the guts to stay that long.
34;just this once." But I have gathered enough experience to realize that I can NEVER break my rules. I have learned to do this by counting in terms of points scored and not money. I believe that , which really separates winners from losers, is the ability to follow your rules without exception, regardless of the circumstances.
Keep trading as Part of a Balanced life
Most of the top traders are very wealthy, so if they weren't trading for pleasure (and winning) they would simply retire. 7) Finally, they learned a long time ago that they alone cannot control the markets. This kind of emotional trading in highs and lows will not only destroy your trading results, but it can also destroy you as a person. Even if you were to make millions in the markets, it is worth it at any cost.
I would spend all day, night, weekends reading, studying, looking at charts, trying different systems, etc. Yes, I have learned so much, without the intensity of the study I would not have become so successful, so quickly (5 years) but if I had to do it again, or if I was giving advice to someone new. Realize that if you can only earn a 30% return in the stock market year after year, you are doing better than most.
There is a sense that checking prices four times a day will make you better. But this is a complete waste of time and leads you to stupidity. Use your time wisely and you will have more free time.
Amazingly, it only took 30 minutes to do this as long as you checked the prices for 1 minute daily and followed your rules. Still, most people will have a problem making this kind of money from the work put in. I'm sure when the stock reaches $70 most traders will grab the profits to take the sure profit and then lose those profits chasing other trades.
If you find yourself "itching" for more action, take some interest AWAY from the markets. If you do this, you are forcing the markets into something that simply does not exist.
CONCLUSION
It's very simple, if you can develop a system that fits your personality and have the discipline to follow it, that's all you need to become a winner. I take it if you have had the persistence to read my book all the way through then trading must have some interest for you and I congratulate you for putting in more effort than 95% of other people will. If you want to look at a winning system, I encourage you to go to my website and see what I have to offer.
