Sunday, February 11, 2007

Predicting the Future

That's what we are always trying to do, learning from the gurus, experts and geniuses, but how many times were they right?

The truth is:-
No one knows where the market is going
No one knows when the market will move

When you try to predict where and when the market will move, you will not be objective anymore and get frustrated when the market don't move in the direction of your prediction.

Most expert make money not because they have predicted the market correctly, but because they traded the market correctly using sound trading practices and developing good trading habits.

The key to profits in trading is not in the prediction or the indicator, but how well the trading strategy is designed and executed. The ability to achieve risk control and cash management will make the difference between a successful trader and an unsuccessful trader.

The correct attitude for successful trading is to let the market tell you what to do. We always like to believe that we can be in control. We want to be in control of our trading and of the market. If you accept the notion right now that you cannot control the market, that all you can control is your execution of trades, you will take a great step towards being a successful trader.

Most traders failed because they don't have a TRADING PLAN to manage risk and control one's emotion.

One of the biggest problems new traders have is that they think they will make a large amount of money right away. They think they will get rick quick. They tend to be impatient, this will not work in trading. The only way you will really know whether you are successful trader is to be successful over time.

Most successful traders will tell you that the most difficult thing about trading is accepting the losing trade. We all have the desire to be right, to be correct all of the time. For novice traders, the losing trade means that something is not working and that you have somehow made a mistake. For experienced traders, losses are just the cost of doing business.

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