Trading & The Mechanism
Success in the world of Stock Trading is almost impossible for the average person.
There are a number of reasons for failure in trading but here are some professional mistakes:
1. Failure to put a stop in, Use 2% and always do it; at least half of trades fail. The larger the stop the greater percentage to recover. 2. Discipline in buying and selling. Use the same entry and exit every time. Do not guess when to buy or sell. Know when to buy and sell each time (This comes with experience and intuition developed with professional experience. You will be wrong on your bets at least half the time. A clean exit is the ticket to survival. 3. Do not have unrealistic expectations great trading mechanisms such as support and resistance often have only 36% winning trades. Holding great winning trades is key to a good general mechanism and can be found at trading tribe on the net. Ed Seykota has a great track record on long term trading. Woodies trading club on the net uses CCI, a good short term trading mechanism. A good trading mechanism is as good as its operator.
If you look at the market as a betting parlor, that’s what it is. If you see it as a business it can be one of the best in the world. If you are a profitable trader you can become very wealthy but only a vert small percentage do. The rest simply just pay the winners in trading. You must always deal with negativity especially when you have a series of losing trades. There is a way out of negativity. If you would like to know more, visit www.bio-etherics.com. Built by a trader to remove negative emotions from trading and so much more.