With all the recent action I think we all need a reminder of what makes a successful trader. Above is the post from Adam on the Traders Whiteboard series and those videos are a GREAT place to start. But Blain from StockTradingToGo.com has also given us a list and what you need to do. Enjoy!
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With the bear market in full force and volatility at record highs every investor needs to be trading
at their best. For the active investor there is no room for error when the market is swinging 10%+ in
single day sessions.
Here are five traits of a highly successful investor (in no particular order):
1. Discipline - Every investor has to be disciplined in the market. If you can’t follow your own rules and stick to a strategy, you may find yourself laying dead in the battlefield faster than you know. Discipline is the most important trait of a successful investor because the market is full of temptation to make dumb mistakes day in day out.
2. Patience - Act too quickly and you may just get burned. Some traders will step back and wait months before making a trade, why? Because they are patient hunters looking for the right moment to strike. Right now one fact is certain, cash is king.
3. Dedication - Invesors that are not dedicated to the market will get punished. Some of the best managers are up at 4:30 AM if not earlier to start their day and map out potential plays. It doesn't matter how late it is at night, preping for each and every day is critical.
4. Guts - When you bet nine months in advance that Apple is going to take off and you place $100 million on the table, you have guts. Some of the best traders in the world have taken bets that no one else saw or agreed with, but had the last laugh in the end.
5. Perseverance - Probably the X factor of successful trading, perseverance is critical to success because let’s face it, not everything is going to go your way. No one cares that you have thirty years experience behind you, without a solid track record you are a nobody. The best part of the stock market is that history has shown the game repeats itself. Investors may loose their rear today, but in three months when the same trade comes around they will know what to do.
Please take time and visit StockTradingToGo.com and work with the network of smart investors spending time there!
Thank you. I like the look of your material and will follow it closely. However, I will be in
the Australian outback for two months and will not have access to electricity - so the laptop will be left at home.Indeed, I will need to suspend
all my trading newsletters until mid-January 2009.
Best wishes, Thea
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Thea,
I have gone ahead and suspended your morning and evening newsletters and your INO TV updates. Shoot me an email when you are back from your trip. Take care and return safely.
Best,
Lindsay Thompson
Director of New Business Development
INO.com & MarketClub
Apply money management techniques to your trading.
Do not overtrade.
Take a position only when you know where your profit goal is and where you are going to get out if the market goes against you.
Trade with the trends, rather than trying to pick taps and bottoms.
Don’t trade many markets with little capital.
Calculate the risk/reward ratio before putting a trade on.
1.Establish your trading plans before you start trading to eliminate emotional reactions.
2.Decide on entry points, exit points, and objectives.
2.Subject your decisions to only minor changes during the session.
3.Don’t change during the session unless you have a very good reason.
4.Follow your plan. Once a position is established and stops are selected, do not get out unless the stop is reached, or the fundamental reason for taking the position changes.
Thank You For A good Post