Discover the Biggest Trading & Investing Online Mistake
Any online investor / trader seeks an excellent off or online future trading career opportunity. Despite this goal, did you know 95 percent of all traders go broke within the first two months? Why do investors lose vast amounts of wealth in one or more of the following markets - option trading, forex trading or currency trading, stock trading, future or commodity trading etc... in such a short amount of time?
Most online investors / traders interact in devastating forms of thinking, which convinces the mind to the point where the trader believes that an educational enhancement ability that develops superb market research skills is not important. On the contrary, if trading is not treated as other business opportunities, the new sales and trading job will cripple the trader. You must develop a purposeful or industrious undertaking to learn how it works. Would you conduct business as a brain surgeon with out a college or university degree? I do not think so; similarly, the same course of action holds true for trading success.
The secret of my success required an earnest and conscientious effort on my part. This action accomplished something to the point of pure boldness; in other words, no matter how boring or non-important you think learning how to trade may be, it must be done to insure a success story.
Every successful company needs a business plan. Yet, when most people take a gamble on the securities industry, they fail to put a trading plan into place. In other words, they end up going on an emotional roller coaster, governed by how the market performs.
Without a trading plan, the majority of traders approach the financial market in an inconsistent manner - i.e. they follow their whims. The typical pattern may include the following:
Day 1 - experiment with option trading Day 2 - randomly select any online trading brokerage firm. Day 3 - try out future trading Day 4 - read about oriental trading then decides to go into that direction Day 5 - change mind completely and try currency trading or forex trading Day 6 - try day trading then in midstream chooses to hold trade for the long term Day 7 - venture off into stock trading Day 8 - dabble in commodity trading Day 9 - give up because you think it is a hopeless cause.
This example is meant to look confusing. Similarly in the illustration above, this trader may use one set of indicators one day, and the next day they will throw these indicators out the window and take on a completely set of
Unfortunately, with no consistent approach, your trading decisions, governed by emotions, are doomed to failure ......... here is why.
When faced with losing money in the market, what do traders do? Usually, they end up rationalizing to hold on to a losing stock. The driving force behind this is that they do not want to be wrong. They let their ego get in the way of making profits.
LOOK! Let us set the record straight. THIS IS A FIRM FACT - not every trade will be a winner. You will not make the maximum profit out of every trade. There is no Holy Grail trading system! You just need a trading plan, which matches your personality.
When I say trading plan, I am not talking about fundamental analysis or technical analysis specifically, I am talking about setting up a simply a set of guidelines to follow regardless of what stock selection method you use.
In fact, through a study of successful traders, I found there are many different trading methods for entering a security. I have seen people use technical analysis; fundamental analysis even astrology to determine when to enter a trade. Despite these varied entry methods, one component remains the same among successful traders... they all have a trading plan that suits them.
In fact, successful traders have a written plan and my friend this is the essential component to their success. I guarantee that investors who stick like glue to a trading plan are the ones who make NOT LOSE MILLIONS of dollars in their activities of online investing.
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=- David Jenyns is recognized as the leading expert when it comes to designing profitable trading systems.
His most recent course Ultimate Trading Systems is a step- by-step trading roadmap to designing profitable trading systems. Learn how *you* can become one of his students. Click Here ==> http://www.ultimate-trading-systems.com
Receive David's free trading tips by sending a blank email to: ==> firstname.lastname@example.org -=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=- GO
About the Author
READ my articles; you'll FIND the best trading plans put together. Searching for these on your own, is a needle in a haystack. I trade everyday & my progressive efforts found the perfect system & plans work. These trading systems are unbelievably powerful, yet simple to use. Until recently, I've kept this formula to myself. NOW, I reveal all. CUSTOM ARTICLES AVAILABLE UPON REQUEST :-)
Choosing A Forex Broker
With currency trading becoming ever more popular, the number of brokers is growing at a rapid rate. What should one look at when deciding which broker to open an account with? These are the important points to consider. Spread Because...
Currency Trading - An Introduction
The simplest definition of currency trading is the practice of exchanging one country's currency for another country's currency. Basically, currency trading involves four main variables: currencies, exchange rate, time, and interest rate. The...
Energy Prices, Inflation and Forex
Oil futures surged to a record intraday high of $70.85 on August
30th, the day after Hurricane Katrina made landfall on the Gulf
Coast. While prices have moderated in subsequent weeks, it's
worth examining how higher commodity prices and the...
Forex Versus Stocks
Stocks have been a popular investment for hundreds of years. Companies issue stocks to raise capital for expansion and new projects, and each share of the stock represents a partial ownership in the company. When the company does well and makes a...
If you start your own home business what sort of business would you choose?
My personal opinion about home business is to create multiple
home income streams. This is essential to make your
homebusinesses to a success. Big question is what sort of
businesses would you choose. If you choose to create several
Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest / trade in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading.
** The Views and opinions represented in the provided website links and resources are not controlled by the Referring Broker or the FCM. Further, the Referring Broker and the FCM are not responsible for their availability, content, or delivery of services.