Trading for Success
Trading for Success requires a necessity of learning your
marketplace and controlling your emotions.
Do you really think those systems and strategies that you get in
your e-mail every day will make us all millionaires? Stop right
there and think, then wouldn't almost everyone be making money
rather than losing it? Keep in mind that any trading strategy
declaring 80-90% wins, would not be for sale at any price, at any
When you make a trade, remember that on the other side, there is
always someone who is thinking the exact opposite of what you are at
the same time in which you are executing the trade.
Patience is a a virtue acquired. Without patience, your fear and/or
greed will take over any strategy you might have devised. Don't
ever make a trade just for the sake of trading in a quiet market.
Your broker will love you for the commission he earned, but you will
end up disappointed when your trade starts going in the wrong
direction due to your haste. Let the market come to you, and stick
to 'your' rules of engagement, not someone else's.
Remember that all markets present opportunities within many
different time frames, every trading day. If you have a bad day
today, stop and examine how or what you did wrong. The market will
be there for another day tomorrow. Never, ever 'double up' after a
loss, thinking that you will make that money back on your next
trade. Stick to your trading plan, absorb any losses that you might
incur as a part of your trading and money management plans.
Learn why your trades won or lost by studying your charts. Without
any idea of why you either won or lost, you will have a much more
difficult time of developing a stable strategy that works for you.
You might find that you could have entered on another earlier
signal, or possibly extended your profits by exercising more
restraint, or held your losses lower by keeping your original stop
losses intact instead of following a market down or up thinking that
a reversal will be coming 'any minute now.'
Keeping these simple tips in mind will help you grow your trading
account day by day, week by week, month by month. Many traders
enter the market erroneously thinking that a couple of big 'kills'
will make them filthy rich. That kind of thinking will blow your
account up faster than you can imagine. Steady gains, and a
sensible compounding strategy in the longer term will present many
opportunities for financial satisfaction by observing and following
those common sense rules which you have set in place.
Many trader's ask, what's a good place to set my stop at? In the
Millennium rooms, we set a 30 pip stop loss. It doesn't change.
That is a room rule which is followed diligently. While this rule
works for Millennium, it may be quite obvious, that it may not
necessarily work for you within your own personal risk tolerances,
or money management strategies, or that of the trader sitting next
to you in the trading room.
Consider setting a reasonable profit target goal. It could even be
as low as 8 ticks. Sell a portion of your holding at a profit, and
then set a break even trailing stop, or perhaps a tick or 2 below
your break even point, all dependent upon where you set your
original profit target at. In this manner, you restrict the chances
of absorbing a loss, while allowing the trade to run forward if it
happens to contain momentum whether it be a long or short position.
The longer it runs, the wider you might wish to set your trailing
stop. May all of our trades run far and strong!
See you in the Trading Rooms!
Contributed by MartyMT