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Learn Stock Market Trading Tips
Successful
Stock Traders:
Common Characteristics
Stock trading isn't for everyone. Some folks
can do it and some can't. Even among the some who can, not
everyone can be successful at it. While there are no hard and
fast rules on what makes or doesn't make a successful stock
trader, those Wall Street Wizards you may hear about who made
the most in the shortest amount of time, all seem to have certain
characteristics in common.
1. Successful stock traders are able to go against their natural
instincts.
2. Successful traders have a system. As simple
a system as possible. It doesn't matter which system you
use as long as
you stick to it. A Successful trader knows her system and makes
trades based ONLY on the system. "The secret to success
is consistency of purpose" You need to develop a separate
strategy for entering a position and exiting one.
3. Successful traders are Risk Adverse. Successful traders
do not like to lose money and stop themselves before losing
too much, even if it means admitting they made a mistake.
4. Successful traders are willing to make mistakes.
Successful traders have what many Native Americans call, "Sovereignty" Sovereignty
is the right and ability, not to do the right thing, but to
do the wrong thing. Sovereignty is the ability to make your
own mistakes.
5. Successful traders care not embarrassed by taking a loss.
Successful traders expect to take losses and know when to cut
them.
6. Successful traders know, or learn how to analyze stocks.
Many traders only use technical analysis, but you may want
to learn to use fundamental analysis as well.
7. Successful traders led balanced lives. We all know the
thrill of the hunt and the market can be addicting, a successful
trader is one who knows when to walk away and can.
8. A successful trader is Patient. A successful trader lets
profitably positions run, but is able to back out when proven
wrong. Patience can mean resilience, courage, and conviction
for when markets go against you.
9. A successful trader has a strong Desire to succeed. Success
takes steady work not a haphazard effort, a strong desire to
succeed can make all the difference in learning what you need
to know and sticking to your strategy when the going get rough.
10. A successful trader is disciplined. Very
disciplined. A successful trader will do what he needs to
do, even if he
isn't in the mood. Discipline also means Sticking to your strategy,
not suddenly buying or selling on a whim, or because of a" hot
tip"
11. A successful trader knows the difference between defensive
and offensive behavior, and when to use each. - Preserve your
money first, profit later.
12. Successful
traders don't listen to rumors or get emotionally involved.
To be a successful trader you have to be very hard
on yourself . Your have to be able to resist the urge to prove
yourself right and be ready to make mistakes. You also need
to be able to not let emotions affect your decisions. setting
up stop loss points for every decision is something you are
going to have to do. That will mean more than occasionally
admitting that you were wrong. You and your portfolio will
survive and you will be able to enter the position again when
trends indicate the time is right. You are going to have to
learn to ignore any emotional ties you have to your stock and
make quick stock trends your master. You will miss the lowest
entry points and the highest selling points, but you will be
able to sleep at night. You will need to learn how to ride
the train of the trends and jump off before your profits turn
into losses.
13. A successful trader knows herself. Successful traders
must be aware of their strengths and weaknesses. Your strengths
and weakness will become very important. Have a plan for dealing
with your weakness. Play on your strengths whenever you can.
14. A successful trader knows her investments. Your investments
are almost as important as you are. Know their past and their
strengths and weaknesses as well.
15. A successful trader sticks to the rules. The rules are
there for a reason. Nothing can ruin a successful Trader as
quickly, or as surely as breaking the rules. # # # # # SolveYourProblem.com : 2007
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