* No MAN ALIVE, or system on earth can ever, or will ever be able to predict the future market behavior. If someone tells you they can RUN AWAY!
* Simplicity is the key. Complicated technical systems are trying to baffle you into parting with your $$$'s. B*S baffles brains.* Systems have three main components: 1) trade entry/exit rules. 2) Money management 3) Trader psychology
95% of traders will put them in the order I wrote above (i.e. in order of importance.)
I realize now the order of importance is:
1) Trader psychology. If you do not have the correct mindset you are doomed to failure. Most traders I come across are seeking a get rich quick scheme. Or wish to make money in the markets with no effort. Then they wonder why their account is sinking faster than the Titanic. They jump into the markets with little or no stock market/trading education but expect to compete with the big boys. Get this. If you enter the stock market with no education then you are treating it as a gamble. If you gain an education, test, and adopt a more professional stance, then you are treating it as a business. Who makes money? Gamblers or business people? It is no different in the stock market.
2) Money management rules. I could trade solely on money management rules and come out ahead. I spend most of my time in this area now. It's that important. I have adopted a much more business like approach to my trading. The results and MY LIFE have improved dramatically.
3) Trade system: I have my simple systems now. They may need a little tweaking from time to time but I will not spend any more time seeking out the Holy Grail trading system. (if you find it... don't tell me about it)
* Trading Really Is a Great Business:But only when you remove the stress. I've been there when I was hanging onto every twist and turn of the market. Trading from emotion. Getting excited about winners and down about losses. Looking back it was not a good phase of my life. The stress levels were far too high. I gave up hobbies, friends, social life. I was forever anxious about what might happen to my positions. Had I have carried on this way I would have been dead or on the trading scrap heap.
But adopting a more business like approach to trading. Taking time to relax and plan my trades. Developing the correct mental posture in order to win. Using sound money management techniques then it actually does become enjoyable.
You can make your trading career as big as or as small as you wish. Want to simply manage your own retirement capital? Then trade in the evenings. Or trade weekly charts and manage your trading account on a Sunday evening.
Want to trade full time? Great. Make sure you have sufficient knowledge, capital and experience to do this. Why not?Want to create a trading empire? It can be done. Get a solid track record, get some business plans drawn up then go for it.
It can be as big or as small a venture as you are willing to take it.
Good luck and keep learning the stock market business.
Sincerely
Mark Crisp
Momentum Stock Trader
http://www.stressfreetrading.com Contact: trader@stressfreetrading.com