“Investing is no different. It is a game of repetition where hundreds of small actions result in one larger result. But most importantly, it is a game of risk management. It is not the home run hitter who wins in the long-run. Rather, it is that strategist who devises the best long-term plan who ultimately wins. While hitting home runs is sexy it is rarely a recipe for success in the investment world. Aim high, but play small. Over time, good risk management and patience wins. Power is no substitute for precision and patience. The same is true in the world of investing.”
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rssTen Ingredients to become A Great Trader
It is all a game of risk management, mind, and a robust system. Everything else is just noise.
- Passion for trading, only passion can fuel the work ethic needed to do the hard work that leads to success.
- Goal oriented traders succeed, if you know why you are trading and where it leads you may just get there.
- Perseverance: It is hard to lose if you never quit.
- Resiliency: The ability to come back from losses may be the secret to trading success.
- Back testing systems and methods before trading them speeds up the learning curve and side steps a lot of learning through real losses. (more…)