10.11.2016 -Ultimate Stock Alerts (New York) – Trading is like any other business. Take a sum of capital and put it to risk, hoping that it will yield a positive return. The trick is to put that capital into something you believe in…this gives you a strong probability of getting that positive return.
So many traders get consumed about the money early on. Of course, the money can be great…but you can’t put the horse before the cart. There is a process involved in developing into a successful trader. That includes learning how to execute trades, generate ideas, position sizing and risk management.
So why do so many traders fail?
Well, most have no plan whatsoever. They buy and sell stocks aimlessly. Maybe someone popular got in the position and they are tagging along. Maybe they heard a rumor and didn’t bother to validate it. They can’t clearly explain what their edge is in the trade.
Now, if you can’t clearly explain your edge, how are picking your exits? You probably have no clue on when to exit the trade. Successful traders have their exits already mapped out before they place the trade. They use that exit to size their trades correctly. Some traders will buy a stock, hope it goes up…but if it doesn’t, they don’t have a clue what to do next, causing them to panic and either sell out at a bad price or hold on and let things get worse.
It’s really helpful to have a mentor in trading. Someone who has been through the grind, they can teach you what they learned from their failures and success. This will cut your learning curve in half. Some people think they can learn it all on their own and don’t believe it makes sense to seek help. You need to be surrounded by other like-minded individuals to discuss and learn from each other.
Successful traders put in the work. They study all their stock alerts. Analyze what they did right or wrong, and try to figure out what they should do next time if a similar situation occurs.
Most traders don’t take the time to journal their trades or analyze the trading day. It’s groundhog day…literally everyday for them, making the same mistakes over and over again. Instead of complaining, they should be studying the best and worst trades of the day (even the ones they didn’t make), trying to identify if there were any repeatable patterns.
Not only that, but they stay on top of the market. They are aware of any major economic releases or events surrounding a company. They don’t let ignorance be the reason why they got a trade wrong. Traders who fail don’t bother to look if there are any headlines surrounding the stock they are trading, they don’t sift through research reports or SEC documents.
The requirement to becoming a successful trader can be mapped out. In fact, it’s a process that can be learned. However, most traders either lack direction or don’t take these factors into account. They get caught up with what they see and hear about on YouTube videos, how easy it is to make tens of thousands of dollars in the market. If it was that easy, there wouldn’t be any opportunities. The reason why most traders fail is that they fail to grasp all the work it takes to becoming a top trader.
Company Name: Ultimate Stock Alerts
Contact Person: James Harrison
Address:140 Broadway Suite 193
Country: United States