This is the final chapter of the book Millionaire Traders. There are some very simple and powerful facts that you need to know before trading.1. Be well capitalized - The majority of business fail simply because they do not have enough money to survive the inevitable mistakes that befall all start ups. Money buys time and time turns into experience, which is the necessary ingredient to master any skill.
2. Expect to lose for at least six months - Learning to trade is like learning how to do many things in life such as riding a bike. Most probably everyone has fallen once or twice. This applies to trading where you don't expect to be successful from the start. You will make mistakes and probably blow up your first trading account. The difference between most new traders and pros is their perseverance. It is much easier to give up trading and move with our lives than to have the dedication to learn from our mistakes and ensure that we don't repeat them. Remember the initial starts up for the 12 star traders?
3. Test before you try - Testing every strategies before you trade live is so important for new traders that it deserve its own section. Review your charts to have a better understanding of how assets trades. Use multiple time frame to ensure more winning trades.
4. Always use stops - Use stop to protect capital. Most asset classes are trending, smart traders will realize that if they catch a breakout move, the move can last for a long time. The best way to take advantage of this dynamic is through the use of trailing stop .
5. Trade to your personality - People who need instant gratification are probably to find their best success focusing on shorter-terms trades. People who are patient and willing to sit with a trade for days or weeks at a time are best suited for long-term trading.
6. Tools of the trade -
A) Mechanical tools
- Good desktop computer with minimum 2GHz chip, IGB of Ram and 100GB hard drive.
- At least two 19-inch flat-panel monitor to view charts,price action, and various websites.
- Preferably two broadband connections (ie., both cable and DSL) to ensure redundancy.
- Speed-dail button on your phone to your broker in case all electronic systems go down and you need to liquidate your position manually.
B) Analytical tools
-Bloomberg and CNBC for latest news.
-DailyFX.com
-www.elitetrader.com
Posts
2 comments:
Thanks for the information on the millionnaire traders, very informative.
You are most welcome.
Post a Comment