Successful traders always have a plan and follow it.
Traders who fail do not have a specific plan, they enter and exit with out reason or they enter and then do not exit until losses are painful.
In short, the unsuccessful have no exit strategy, or if they do, they do not follow it
Successful traders wait until the trade comes to them, they do not force the trade. Rather they exercise discipline and ignore that temptation that always suggests: “let a loss run just a little more, it will come back.” The fact is that: the loss that runs just a little more often runs a lot more.
Successful traders do not rush to cut profits, the unsuccessful traders often scalp the profit as soon as it appears because they fear that the price could turn South.
Successful traders employs strategies that result in following the move up with an exit that is activated on a pre-determined turn down for a Bullish play triggers.
Unsuccessful traders are impatient. They enter without waiting for a good entry, and exit on the slightest adverse move, not understanding that is the natural action of the market for stocks to move North and South, and fail to realize that losses are a part of trading.
Successful traders do not keep their eyes glued to the money. Instead they concentrate on making good trades, knowing that making good trades will ultimately result in success.
In the Trenches: Most often, when the general public talks about investing, they mean putting money into a company’s stock and holding it for a long time horizon until they realize a significant gain. This is called “buy and hold.” When we trade the Short-term our goal is buy low and sell high, and our focus is purely technical and the focus is not on fundamentals as it is with long-term investors. Short-term traders focus on market volatility, i.e. the fast rising and falling of stock values, for the more ups and downs a stock has, the more money traders believe they can make, getting in and out quickly and taking a quick profit.
Knowledge is Power, Red’s Road to Riches
The differences between the winners and losers is that the winner take it seriously and they always add to their knowledge. They read, study, learn nuances, attend seminars, and sometimes use a coach or a mentor.
Successful traders are not those who say coaching or seminars are too expensive. They understand that they can recoup such costs in a single trade.
The unsuccessful folks have the opposite POV, shying away from and ignoring the benefits of a trading education because of the minimal cost. Remember, Knowledge is Power, it will change your life for the better.
Download and study the Red Roadmaster’s e book, Knowledge is Power, the Road to Riches, the Latest Edition and get in the Action with confidence and courage; it’s Free.
All the Best,
Red
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