YOUR FREE TRADING SYSTEM: http://www.netpicks.com/tjgiveaway1 Throughout my relationship with Netpicks, I have communicated with many traders and those who entertain visions of becoming a profitable trader. What is quite staggering is the number of people who are not equipped for the road leading to trading success. What do I mean by equipped for trading? It’s not that I think I am an excellent judge of potential but it’s what people say (or don’t say) that tips you off that trading is probably not for them. Read more: http://www.netpicks.com/4-areas-you-must-cover/

1. Four Areas You Must Cover
http://www.netpicks.com/4-areas-you-must-cover/

2. Throughout my relationship with
Netpicks I have communicated with
many traders and those who entertain
visions of becoming a profitable trader.

3. What is quite staggering is the number
of people who are not equipped for
the road leading to trading success.
What do I mean by equipped for
trading?

4. It's not that I think I am an excellent
judge of potential but it's what people
say (or don't say) that tips you off that
trading is probably not for them.

5. One thing I ask people who want to
have a conversation about trading is
what their goal is for the conversation
and what they expect to get from it.

6. The common reply is "just to talk" or
"see how you are doing in trading" and
then I ask what their trading goals are.
I usually get an answer that is about as
useful as the answer to their reasons
for wanting to talk.

7. If you were to have a conversation
with a successful business owner, they
can tell you what their goals are.

8. Professional athlete? Ask them what
their goals are for their training and
the answer will be anything but vague.

9. Throughout history, those that find true
success have identified their goals and
have set forth with a plan to attain it.

10. The following four points are
something I jotted down a few years
ago after reading one of the many
trading books that litter the landscape.
The author escapes me but I did find
usefulness is some of what was
written.

11. You have to establish goals for your trading.
Without them you are drifting blindly
through a business that has
participants that are highly skilled and
want your money. The goals cement
you to a path and can, if followed,
keep you on a track to success.

12. They keep you focused. What do you
WANT from trading? Yes, money but
what will that money give you? How
will it make you feel?

13. Whatever market(s) you are going to trade,
understand them.
What makes up the market you are
wanting to trade? What fundamentals
drive the bias of market participants?

14. Even if you use straight up technical
analysis, knowing what "drives" the
market can give you better insight so
you are not trading blind.

15. You need a trading strategy/trading rules.
It goes without saying that these rules
and trading systems must have an
"edge". Have your trading rules
specify what makes a valid trade.

16. Ensure that money management is
thoroughly understood. Your rules are
what is going to assist you in being
able to take a piece of the trading pie.

17. Finally, follow the rules
that you have laid out.

18. The hardest part I find in trading is to
follow the rules. I don't fall too far off
track but just today, I bought into an
area where the probability of price
advance had not made itself clear.

19. It's not something I usually do and it
cost me a full position loss. Price did
not advance far enough for me to
tighten my stops.

21. The discipline to follow your rules
consistently is hard to keep for a few
reasons such as emotions and bias.
For me, today, it was an assumption
that price would going to advance
even though I was missing signs that it
was going to happen.

22. I have seen some underestimate the
psychology aspect of trading however
for the majority, that is what does
people in. Not just in trading but
emotions in every day life can make a
good day become a bad day very
quickly.

23. The snapping at the clerk who
messed up your order.
Yelling out your window to someone
who cut you off in traffic.
Raging at the neighborhood kids who
trample your grass

24. There is that moment between the
impulse and the act where you can
actually decide how to react. It is
brief, but it is there.

25. You can't fight emotions as they are in
us.they have been here since the dawn
of man. You have to accept them.
Once you accept them, you can find
alternatives to how you handle them.
In doing so, you serve your trading.

26. For today though, it wasn't emotions
that made me take the bad trade
although I did break rule number four.
It was being overconfident thinking
that I knew what was just about to
happen and then throwing my trading
rules away and improvising.

27. Set your goals.
Know your market.
Know your system/rules.
Follow your trading rules.