18th July 06 - 10 Winning Tips to Your Trading Success

Whilst researching for my Trading Mastermind Program (only 5 spaces left), I happened to chance upon an article (by Brian Lee) in which the stuff he generously shares coincide with my trading philosophy. So here goes:

1) Trading is simple, but it isn't easy. If you yearn to have a future in this industry, forget about "hope" and stick to your trading plan.

2) Get out a trade immediately when the reasons that supported your entry no longer exist.

3) Don't open a trade just because it is cheap. Only initiate a position is when it looks set up to make a decent move.

4) Good trading should be boring, like doing the same thing over and over again. If there's one thing I guarantee in trading, it's that "thrill seekers" or adrenaline junkies get their accounts grounded into tiny bits and pieces. It's just a matter of time.

5) The turning point of when amateur traders turn into professional traders is when they stop searching and hoping for the "holy grail in trading" and start managing their risk on each trade.

6) You are buying and trading on the emotions of other traders, not the actual stock. At any moment, you must be aware of the human psychology and emotions present in the markets.

7) Always acknowledge and be in control of your emotions. Failure to do so will bring you to the exit sooner than you think. If you are screaming at your computer screen, begging your position to move in your favor, you have to stop and ask yourself, "Is this rational?" Take a deep breath. No point screaming as it will not 'scare' the market away from your stops.

8) Always remember, trading is supposed to be a business. Don't get too personal when faced with losing trades. Like business, winning and losing are all part of the game.

9) Beware of your number one enemy, yourself! If you start to get too excited, beware! As excitement clouds your judgment, it starts to increases your risk.

10) If you come into trading with the idea of making "big money overnight," you're better wake up and smell the coffee. Most accounts have been blown because of this "account killer" mindset.