Novice day traders have little idea how to manage their trading risk,
even as a concept. The typical pattern is that they put on a
trade based upon some fairly poorly defined criteria, and when
the market eventually moves against them, they are clueless as to
when to get out of the position. Instead, they will typically let
the trade worsen until it is eventually too painful to retain.
The experienced trader, however, places risk management at the
heart of the entire trading plan from the very beginning…
During my investment banking career, economists were for me public enemy number one! I never saw what the big deal was about. Most of what they say is completely unprovable. It is always after the fact, and their explanations of forex, stock market or commodity market moves are always retrospective.
The essential problem is that these economic pundits are providing reasons AFTER the fact for why the market has done what it has already done, and they always look good riding on a trend that they imagine is likely to carry into the future.
The key point to come back to is that Online Trading has to be a business, if it is intended to be your primary source of income for yourself and your family. If that is the case, then it is imperative that you treat it with the seriousness that it deserves. That means that even though you may be working for yourself at home, you need to impose some business disciplines that you would find in a standard office environment.
To a large extent, ALL online traders (both institutional and private) suffer from one or more of the same set of trading errors that CRIPPLES their performance and profitability in the markets.
More on Online Trading Free Report Reveals: The 7 Deadly Mistakes Of Trading
In online trading, just because you CAN trade any market does not mean that you SHOULD. A key component to achieving huge success in Trading, as in life in general, is the power of Focus.
