Trading for a Living
Trading for a living is the dream of many and the good news is anyone can become a professional trader. It is the aim of this section to give you clear concise advice on how to follow your dream.
In this section of Net Planet you will find all you need to know in terms of getting started from how to adopt the right mindset and how to construct and implement a trading plan for profit.
Let's get started and look at the exciting world of trading financial and commodity markets for profit.
Trading is the final frontier of the free market economy and represents one of the few businesses where you can start with small stakes and build real wealth.
Everything about trading can be specifically learned however the majority of people who trade lose. This is simply because they don't understand how the markets really work.
So what mistakes do traders make?1.Having a method that is to complicated
Many traders think the more complicated their method is the more likely it is to be successful, but the exact opposite is true. The simpler a trading method is the more likely it is to succeed in the face of ever changing market conditions.
There is absolutely no correlation between how complicated a trading method is and how successful it will be.
A method should be simple to understand and implement2.Not understanding the logic of a method
Many traders try and follow a method devised by someone else or a black box trading system where the logic is not revealed.
The problem here is that if you don't understand how the method works you wont have the discipline to follow it through inevitable periods of drawdown and losses.
Discipline is an essential element of trading and to have it you need to understand and be confident in your trading method.3.Not understanding money management
If you trade at some point you are going to have a string of losses and its nothing to be embarrassed about it happens to all traders including the best.
What you do need to do however is be prepared for them and make sure you can ride them out and this involves proper money management.
Keep in mind the old gambling saying:
If you want to win you have to bet but you can't bet if you are not at the table.
4.Trying to trade market noise
Another huge mistake made by traders.
The best way to trade any market is to lock into and follow the long term trend. Look at any chart of anything and you will see the longer term trends that last for months or even years and it's these trends that are the ones to focus on.
Many traders try and day trade but these moves are essentially random. There is a huge market in day trading systems, often promoted by brokers as it's in their interest - they make more commission!
Fact is however that when you take into account most daily movements the profit is not big enough to cover commission, slippage and inevitable loses.
5.Emotions & Discipline
Traders who are emotional tend to lose, but keeping your emotions out of trading is difficult as money for most people is an emotional commodity!
If you read any of the great traders interviewed they will tend to focus a lot on one word and that word is DISIPLINE.
If you have a trading method you must have the discipline to follow it exactly. In fact, if you don't follow your trading method with discipline you won't have a trading method at all.
Above are the major mistakes made by traders there are more and you will find them in the Winners and losers section of this website.
How to get started trading successfully
Here we have provided you with specific information that if followed can make you a lot of money and turn you into a professional trader.
We have also included the background to one of the most successful trading systems of all time.
We hope you enjoy the website and please feel free to email us with any questions or queries you may have.
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