Observe Your Self Talk
Submitted: 30 Jul 10 16:19
 

A self directed trader does not has the luxury of a risk manager to determine his daily maximum losses, positions or risks. The trader’s account is entirely at the mercy of his actions on a daily basis. When one is faced with a string of losses, it is common that negative self talk starts to manifests into actions that greatly jeopardizes his account. He may starts to doubt his trading system which has served him well for months, he may start blaming factors that he has never used to take into his usual trading considerations or he may start to think that trading for a living is just a fairy tale, and stop short when he was just about to find success. Even when a trader is having a string of great trades, he may also talk himself from taking valid trades as he starts to get conservative in order to protect his winning streaks. Trading a system requires an unwavering determination to squeeze the trigger when the moment comes, to follow all the rules that has brought you success and also to obey all the parameters that determines your risks/loss exposure. Trading success comes with self mastery and a great way to begin is to be attentive to what you say to yourself.

 

 

 
The Need To Acquire An Alternative Income Generating Skill
Submitted: 27 Jul 10 14:12
 

The world is becoming a very uncertain place. Jobs are no longer secured and income is never guaranteed. It has come to our realization that having a single source of income is a very risky proposition, especially when it is getting more difficult to generate substantial savings with the ever increasing price and dropping savings interest rates.

Being able to consistently make money from the Stock/Futures/Options markets is an extremely appealing notion but only a handful is able to do that. Imagine having the absolute freedom to generate income at the comfort of your home with a few clicks on the mouse. It is precisely what profitable trading can delivers that has lured many into this business. Trading is simple but not exactly easy. Having a sound and tested trading system, and often with the guidance of a trading mentor, is often the key to successful trading.

 

 

 
Trade Signals On 02-07-2010
Submitted: 25 Jul 10 14:38
 

 

Chart Signals

CLICK HERE TO VIEW A LARGER IMAGE.

 

 

 
Treating Trading as a Business
Submitted: 25 Jul 10 14:27
 

If you are a businessman, will you consider all the risks and do proper research before committing to a deal? The answer is probably yes. But do you also treat your trading as a business and exercise the same diligence? The obvious tell-tale signs are : 1) You do not commit to learning proper trading methods. 2) You buy and sell on your whim and fancies or on some latest hot tips. 3) You do not have an exit strategy 4) You do not commit any proper preparation time to your trading. If your answer is yes to most of the above, then you are treating your trading like a hobby or even gambling.

I am amazed at the number of people who call themselves traders or investors but do not commit the time or effort to learn proper trading methods. What is more shocking is they are risking their hard earned money that is meant to be for their retirement nest. If you treat your trading like a business, you will want to give yourself an edge and be well equipped with the proper knowledge. You will study your risk exposure and take the necessary steps to protect yourself if things go against you. Do yourself a favour this year and commit to learning proper trading strategies that are tried and tested. With a sound trading strategy and proper mindset, your trading will no longer be like a hobby or gambling but a viable business that gives you continual positive financial returns.

 

 

 
Exploiting a Mechanical Trading System
Submitted: 25 Jul 10 14:26
 

For a trader that base his trading decisions on a mechanical trading system, he is exploiting the repeat occurrence of a market scenario where that scenario can be quantified mathematically.

That could be established by a combination of indicators, highs and lows or chart patterns.

The benefit of using a pure mechanical approach is the absence of subjectivity and thus lowers the possibility of judgment errors.

 

 

 
Take Only What the Market Gives
Submitted: 24 Jul 10 17:06
 

Every single trade has a probability of success that is typically unique to its setup. Based on the observation of market behavior over a significant period, each trading signal has an optimal rate of success based on a pre-determined profit target. It is thus senseless to push this envelope without any basis.  One of the most common mistake made is when a trader lost a couple of trades using the system, another signal comes along  and he wants that final  trade to cover all the losers by increasing the target on demand. By doing that, the trader has upset all the research done as that decision is not sound in terms of probability. Rather than covering part of the loss, he could be adding to the total loss of the day. As the saying goes, you take what the market gives, and not ask for what you want from the market.

 

 

 

 
Start from the Beginning
Submitted: 24 Jul 10 16:58
 

Is trading risky?

All ventures have an element of risk. Trading is no exception. However you can minimize your risks by : 1) Commit to learn proper trading methods. 2) Don’t buy and sell on whim and fancies or on some latest hot tips. 3) Have an exit strategy in place 4) Devote proper preparation time to your trading.

Can I just learn trading from books and the internet?

If given the choice, will you prefer to learn how to drive a car from the books or internet or a proper driving instructor? Which do you think will give you better results? Sure you can save money from hiring a qualified instructor but it is unlikely that you will be able to drive your car on the road in real life conditions without causing a serious accident. So unless you have deep pockets for your trading and is willing to go through the school of hard knocks. As the saying goes, don’t be penny-wise pound foolish.

What do I need to get started?

It is easy to get started. All you need is a computer, internet connection and an online broker to start trading.