Many new traders fail in the stock market simply because they rush in without putting in the proper time and discipline in doing their homework. Trading is a professional endeavor much like any other career, you will only get out of it what you put into it. There is no easy money, you will have to earn it by out witting, out playing, and out smarting the majority of other market participants.
You need to learn ten things to be a successful trader:
- How to manager your risk per trade.
- What systems and methods really make money over the long term.
- What system fits your personality and beliefs about the market.
- How much heat you can you handle. How big can you trade with out emotions taking over?
- You must learn how the market actually works, trends, flows, and functions.
- Learn to focus only on what makes money in the market, everything else is noise.
- Discover who the greatest traders of all time were and study how they operated.
- Find out what the best books on trading are and read them.
- Study the charts of the stocks you are trading to understand how it works with trends, support, resistance, and moving averages.
- Practice paper trading, simulated accounts, and trading small positions of real money until you have mastered your trading plan. (more…)