Saturday, January 17, 2009

Some important tips to be a good Stock Trader.

Jack Schwager in his book ''Market Wizards" emphasizes 0n nine traits to be a successful trader.
1) Desire to be successful (Character Trait)
2) The confidence that they could win over the long run (System Trait)
3) Discipline to follow a given methodology (Character Trait )
4) Taking Trading seriously ( Character Trait )
5) Rigid Risk Control (System Trait)
6) Patience to wait for opportunities (Character Trait)
7) Acting independent of the crowd (Does right thing)(System trait)
8) Accepting loosing is a part of the game (Character Trait)
9) Loving what you are doing (Character Trait).

Seven major obstacles that a trader faces.

1) Poor skill
2) Lack of adequate capital
3) Lack of patience
4) Lack of Discipline
5) High risk aversion
6) Setting unrealistic targets and goals
7) Trading without having in place a proper trading system or a trading plan

All traders should have a Mantra.
1) I will educate myself on how the market works.
2) I will learn how to find and place trades.
3) I will trade with equity management.
4) I will never trade without a protective stop loss.
5) I will not chase the market.
6) I will be patient.
The market will meet the criteria of my trade or I will not trade.

Nine Profit killers in trading.
1) Ego 2) Greed 3) Fear 4) indecision 5)Confidence versus arrogance 6) Trading stress 7) Risk of loss 8) Unsupported trading expectations 9) Discipline.
Master your self destructing habits.Plan to change some really bad habits.

Socrates " We are what we repeatedly do. Excellence then is a habit ".

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