Fundamentals Of Trading
Trading is not an exact science. You can't do X and get Y every time.
It is as much an art as it is anything else.
There is no magic formula.
** Trading is all about probability. It is the art of correctly
applying a set of carefully thought out rules and
allocating the probability of that event to result
in success.
** Each trade is an independent event. The market does
not remember if you lost or made dollars the last time
you traded.
** The way you approach the market psychologically has
as much to do with your success as any trading plan.
** Risk management is crucial if you want to have any
hope of becoming a successful trader.
** Matching a method of trading with your personality
is the only way you will ever feel comfortable
in the markets.
** Never, equate your success or failure in the markets
with who you are as a person!
** An adequately funded account is necessary - not only
to be able to take the trades you want, but also so you
don't feel every trade is a live or die situation.
The journey to the road of successful trading will make you confront your deepest fears.
Your armor on this journey will be confidence, knowledge and belief in yourself that you can achieve your dreams.
The Flaw In Our Emotions
As humans we have a natural tendency to try and influence our surroundings and events we take part in. This is one reason we, as a species, have succeeded but it is also one of the fundamental flaws we all have when trying to achieve success as a traders.
Understand the trend methodology and have trade tools to show you what the direction of the markets heading.
It definitely helps.
