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Trading 38 Tips

Trading 38 Tips

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Published by skm9999
stock market learning process for serious student who want to be successfull trader in future with learning charting ,dicipline and self control of emotion while trading to overcome human error
stock market learning process for serious student who want to be successfull trader in future with learning charting ,dicipline and self control of emotion while trading to overcome human error

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Published by: skm9999 on Jun 14, 2009
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09/21/2010

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38 steps to becoming a trader They are as follows:1. We accumulate information - buying books, going to seminars andresearching.2. We begin to trade with our 'new' knowledge.3. We consistently 'donate' and then realise we may need moreknowledge or information.4. We accumulate more information.5. We switch the commodities we are currently following.6. We go back into the market and trade with our 'updated' knowledge.7. We get 'beat up' again and begin to lose some of our confidence.Fear starts setting in.8. We start to listen to 'outside news' and to other traders.9. We go back into the market and continue to 'donate'.10. We switch commodities again.11. We search for more information.12. We go back into the market and start to see a little progress.13. We get 'over-confident' and the market humbles us.14. We start to understand that trading successfully is going totake more time and more knowledge than we anticipated.MOST PEOPLE WILL GIVE UP AT THIS POINT,AS THEY REALISE WORK IS INVOLVED.15. We get serious and start concentrating on learning a 'real'methodology.16. We trade our methodology with some success, but realise thatsomething is missing.17. We begin to understand the need for having rules to apply our methodology.18. We take a sabbatical from trading to develop and research our trading rules.19. We start trading again, this time with rules and find somesuccess, but over all we still hesitate when it comes time toexecute.20. We add, subtract and modify rules as we see a need to be more proficient with our rules.21. We feel we are very close to crossing that threshold of successful trading.22. We start to take responsibility for our trading results as weunderstand that our success is in us, not the methodology.23. We continue to trade and become more proficient with our methodology and our rules.24. As we trade we still have a tendency to violate our rules and our results are still erratic.25. We know we are close.26. We go back and research our rules.27. We build the confidence in our rules and go back into the marketand trade.28. Our trading results are getting better, but we are stillhesitating in executing our rules.
 
29. We now see the importance of following our rules as we see theresults of our trades when we don't follow the rules.30. We begin to see that our lack of success is within us (a lack of discipline in following the rules because of some kind of fear)and we begin to work on knowing ourselves better.31. We continue to trade and the market teaches us more and moreabout ourselves.32. We master our methodology and our trading rules.33. We begin to consistently make money.34. We get a little over-confident and the market humbles us.35. We continue to learn our lessons.36. We stop thinking and allow our rules to trade for us (trading becomes boring, but successful) and our trading accountcontinues to grow as we increase our contract size.37. We are making more money than we ever dreamed possible.38. We go on with our lives and accomplish many of the goals we hadalways dreamed of.Most traders will identify with this list and should be able to placethemselves within these steps. Keep in mind that very few people progress through these steps in an orderly fashion. Developing your trading skills is an iterative process. For example, you may reachStep 13., find that although you were making money, your basic premise for trading was flawed (you might have been benefiting fromthe bull market, rather than your own trading prowess and then have been rudely awakened when the market entered a bear phase) and youmay drop back to Step 4. and start 'climbing' the steps again.Having the proper mindset, attitude and psychological makeup becomesincreasingly important as you progress through the steps. The focusof the earlier steps is on external issues, i.e. developing proficiency in the mechanics of trading while the focus of thelatter steps (particularly from Step 30, on) is on internal issues,i.e. improving ourselves mentally and psychologically, maturing astrader regardscreditviolet
Thursday, May 14, 2009
Ten Commandments of Trading Discipline
trading discipline should dramatically improve your trading success if adopted and followed. They
1) Trade free from fundamental prejudices.
Hold no judgment on a stock. Don’t try to rationalize a losing position, or fall in love with a winningTruth” is its price.
2) Focus on proper trading strategies and not on making money.
Money is merely a consequence of skill level, or lack thereof. As long as you trade with unwaverin
 
mode of thinking. Both winning and losing trades should be reviewed during your journey towards t
3) Develop a trading style that is consistent with your personality and philosophy.
 Trade your nature!
4) Determine the risk/reward ratio of each trade before entering.
Risking the farm to make peanuts is unwise. Create the plan
before
the trade, and not during!
5) At times, the best action is no action.
Don’t search for action and think that you must trade every day.
6) Trade with the trend since stock prices flow in the direction of least resistance.
If a stock goes against the trend you expected, get out. When in doubt, stay out or get out.
7) There is no room for emotions in trading.
Disciplined traders can observe the market from the perspective as if they are not in a position, evthink it should do.
8) Make the market come to you.
 If it doesn’t play “your hand in your world,” step aside. Be strict, be disciplined, and be patient, and
9) The true battle is not with the market, but learning how to control your own emotional im
Many internal battles of letting fear and greed interfere with logic and discipline can unfortunatelyplaced stops based on technical analysis.
10) There are no “holy grails,” magic software, or short cuts to success.
Professional traders never cease being students of the markets. Spend time each day developingyour own trades and actions.

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