How many ways can you draw a circle? It's probably a strange question to ask, but the reality is, trading is very close to the same discipline. How many ways can you successfully trade? Whether you're drawing a circle or trading, each requires certain elements to complete a perfect circle or a perfect trade.
I wanted to share with you 5 key elements that you must be using if you are going to trade successfully or invest in the markets. I like to call them the building blocks that must be in place to grow your fortune.
Each of the 5 elements are short and to the point and contain nuggets of knowledge that are essential for your success in the markets.
Rule #1: Attitude
Attitude is so important in your approach to investing and trading.
Rule #2: Game Plan
Trading without a game plan is like crossing the ocean without a compass, you are going to get lost and run into a lot of problems without a game plan.
Rule #3: Trend
I'm sure you have heard the expression, "the trend is your friend." Well, truer words were never spoken in trading. This article will show you how to quickly determine the trend in any market.
Rule #4: Diversification
One of the easiest ways to reduce your risk in any market is to diversify your holdings. As they say, "do not put all your eggs in one basket." This article on diversification, you will earn which markets you should be looking at and why non-correlating markets are so important to have in your portfolio.
Rule #5: Money Management
Perhaps some of the most-asked questions we get from members are about the use of stops and money management. This is a crucial cornerstone to your success as money management plays just as much an important role as picking out the right stock or market to trade.
The #1 Key To Trading Success
There is an old adage in trading that goes like this, "once you find the key to the market they change the locks." The 1 key to success that can never be changed is discipline. Unless you're disciplined in your own trading approach, you are going to find it very difficult to find true and lasting success in the markets.
I will leave you with one of my favorite quotes is from Henry Wadsworth Longfellow:
"A single conversation across the table with a wise man is better than ten years mere study of books."
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
I understand that 10 percent of traders make money... I know, it is less than 50%. Why...
I think, traders start to behave like gamblers, where emotions take over, No, considered and measured response always fear or greed.... For a good trade, greed should not take over... define a gain or a max. loss. For a bad trade, fear should not take over. Look at last 10 or 20 trades...yourself, or better a trusted trader friend and look at your decisions for good and bad trades...
If you can not control emotions, quit.. You will lose all the money you have committed to trading...
Great post, Mr. Hewison
Age-old, stuff, but is always a good time to re-align one's self
and one's trading to sound principles of thought and action.
For someone who, for many reasons, has chosen to watch and
trade 1 market only, in my case, Wheat, the Daily Triangles don't
work so well for me, but overall, the Triangles - the Weekly and
Monthly in particular - and how they inter-relate to one another,
is greatly improving my relationship and understanding of how
the ever-evolving short / mid / long-term trends affect each
other in real time.
For example: When I got out of my Shorts and also went Long
480, I was aware - more aware than I used to be - that I was
Buying against the grain because the Weekly and Monthly Tri-
angles were still Red. More often than I care to admit, I would
lose sight of the W and M trends and be overly optimistic that
my Daily, or intraday based entry, was better than it was.
This may be a Bottom for Wheat. It may not be. But one thing is
sure: the Triangles have definitely improved my trading. When
Wheat stalled last night above 515 but below 520, I realized I'd better
-- knowing I was Long against the Weekly Red Triangle - I'd better
lock-in Profit. I also went short and then bought back this morning
in the 510-508 zone. 516 to 509 is 7 cents per contract. If it werent
for your MarketClub's Triangles I'd've stayed in my 498 and allowed
7 cents per contract slip away on me. . . again. Ka-ching to that!
Gratefully,
Jack
I'm a new trader, look for a mentor. I wonder if going to school is the right thing but I'm 54? I'm interested in penny stocks and have been studying for two month, with Peter Leens and Timothy Sykes. I have not open a tradering account yet. Your comments helps
Hello, Leonidas
Whatever you do, whatever you decide to buy or sell, my one advice is to new traders is: Paper-trade your trading for 3 months before you use real money. Most online brokers have demo trading platforms for would-be clients to use for 2 weeks or so. You dont need an account for that; just an email address. All the best - J