mark04
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- Oct 12, 2009
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Successful Trading Strategies
Success Leaves Clues
There are certain 'Business Rules' that successful investors and traders adhere to. If you were able to model these business rules then maybe it's possible for you to also achieve similar results. You would need to understand and appreciate the beliefs, attitudes and behavior, as well as the timing and sequencing of the strategies that successful traders implement.
• Trading provides one of the last great frontiers of opportunity in our economy. It is one of the very few ways in which an individual can start with a relatively small bankroll and actually become a multimillionaire.
• Of course, only a handful of individuals succeed in turning this feat, but at least the opportunity exists.
A rigid stop-loss rule is an essential ingredient to the trading approach of many successful traders.
• If We wanted to become a successful trader, We would seek information and advice from the most successful traders We could find. If we wanted to become a failure, we would seek advice from men who had never succeeded. If we wanted to succeed in all things, we would look around us for those who are succeeding and do as they have done.
• Taking advantage of potential major winning trades is not only important to the mental health of the trader but is also critical to winning. Letting winners ride is every bit as important as cutting losses short. If you don't stay with your winners, you are not going to be able to pay for the losers.
• In addition to not overtrading, it is important to commit to an exit point on every trade. Protective stops are very important because they force this commitment on the trader.
One other thing that is absolutely critical: You have to be willing to make mistakes regularly; there is nothing wrong with it. Making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money.
• Whenever We enter a position, we have a predetermined stop. That is the only way we can sleep. we know where we are getting out before we get in. The position size on a trade is determined by the stop, and the stop is determined on a technical basis. We never think about other people who may be using the same stop, because the market shouldn't go there if we are right.
• If you personalize losses, you can't trade. When things go bad, traders shouldn't stick their head in the sand and just hope it gets better. You should always have a worst-case point. The only choice should be to get out quicker. The worst mistake a trader can make is to miss a major profit opportunity. 95 percent of profits come from only 5 percent of the trades.
• Probably our best technique is not picking up the phone to close out a winning trade. Show us the charts, and we'll tell you the news. Have an opinion on what the market should do but don't decide what the market will do. Be happy with a percentage of the move.
• We spend our trading trying to make Ourselves as happy and relaxed as we can be. If we have positions going against us, we get right out; if they are going for us, we keep them.
Best Regards
Mark,
Success Leaves Clues
There are certain 'Business Rules' that successful investors and traders adhere to. If you were able to model these business rules then maybe it's possible for you to also achieve similar results. You would need to understand and appreciate the beliefs, attitudes and behavior, as well as the timing and sequencing of the strategies that successful traders implement.
• Trading provides one of the last great frontiers of opportunity in our economy. It is one of the very few ways in which an individual can start with a relatively small bankroll and actually become a multimillionaire.
• Of course, only a handful of individuals succeed in turning this feat, but at least the opportunity exists.
A rigid stop-loss rule is an essential ingredient to the trading approach of many successful traders.
• If We wanted to become a successful trader, We would seek information and advice from the most successful traders We could find. If we wanted to become a failure, we would seek advice from men who had never succeeded. If we wanted to succeed in all things, we would look around us for those who are succeeding and do as they have done.
• Taking advantage of potential major winning trades is not only important to the mental health of the trader but is also critical to winning. Letting winners ride is every bit as important as cutting losses short. If you don't stay with your winners, you are not going to be able to pay for the losers.
• In addition to not overtrading, it is important to commit to an exit point on every trade. Protective stops are very important because they force this commitment on the trader.
One other thing that is absolutely critical: You have to be willing to make mistakes regularly; there is nothing wrong with it. Making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money.
• Whenever We enter a position, we have a predetermined stop. That is the only way we can sleep. we know where we are getting out before we get in. The position size on a trade is determined by the stop, and the stop is determined on a technical basis. We never think about other people who may be using the same stop, because the market shouldn't go there if we are right.
• If you personalize losses, you can't trade. When things go bad, traders shouldn't stick their head in the sand and just hope it gets better. You should always have a worst-case point. The only choice should be to get out quicker. The worst mistake a trader can make is to miss a major profit opportunity. 95 percent of profits come from only 5 percent of the trades.
• Probably our best technique is not picking up the phone to close out a winning trade. Show us the charts, and we'll tell you the news. Have an opinion on what the market should do but don't decide what the market will do. Be happy with a percentage of the move.
• We spend our trading trying to make Ourselves as happy and relaxed as we can be. If we have positions going against us, we get right out; if they are going for us, we keep them.
Best Regards
Mark,
