what's the biggest difference between profitable and...
- Thread starter liam
- Start date
Simple answer, a profitable trading style.
Every single trading style has its critical weakness, and if you don't see any weakness in your style then you don't know how to trade it, this applies to even the best of the best traders at my firm, traders who make a million a year know exactly what's wrong with their style, that's how they can work around it.
Once you see the flaw in your trading style, you need to ask yourself whether this style is for you. You may not be a good bottom picker but you may be good at fading gaps, you may not be a good trader at fast and volatile stocks but you can handle second tier's, you may not have the discipline to be a scalper but you can hold on to your winner patiently riding out the whole trend, etc.
If you are not profitable, either your style is fundamentally wrong (99.99% of the styles directly taken from books), or it is not the right style for you, keep looking.
Every single trading style has its critical weakness, and if you don't see any weakness in your style then you don't know how to trade it, this applies to even the best of the best traders at my firm, traders who make a million a year know exactly what's wrong with their style, that's how they can work around it.
Once you see the flaw in your trading style, you need to ask yourself whether this style is for you. You may not be a good bottom picker but you may be good at fading gaps, you may not be a good trader at fast and volatile stocks but you can handle second tier's, you may not have the discipline to be a scalper but you can hold on to your winner patiently riding out the whole trend, etc.
If you are not profitable, either your style is fundamentally wrong (99.99% of the styles directly taken from books), or it is not the right style for you, keep looking.
Hi Liam,
this is not a question that can be answered fast. However I experienced that discipline is definitely the most important key to success combined with experience, patience, good risk management and a positive state of mind towards being successful. I think the following article on money management is great:
http://www.swingtrader.net/lessons/2percentrule.html
Also check out: http://www.swingtrader.net/lessons/SuccessTraits.html and http://www.daytradingcoach.com/content_phil.html
this is not a question that can be answered fast. However I experienced that discipline is definitely the most important key to success combined with experience, patience, good risk management and a positive state of mind towards being successful. I think the following article on money management is great:
http://www.swingtrader.net/lessons/2percentrule.html
Also check out: http://www.swingtrader.net/lessons/SuccessTraits.html and http://www.daytradingcoach.com/content_phil.html
We all know what to do - winners and losers, breakeven traders,
aside from trite statements like MONEY... Well, anyone can
be a trader with a large fortune....
It's all in your head ! If we all know what to do yet only some
of us manage to do it day in day out without major stumbling, than if you really think about this - this is your answer !
After some real consideration - and I used to think we are
predetermined for life I think anyone can change his ways !
Don't give up but also don't look for easy answers because
even if you find them, you may not follow thru.
aside from trite statements like MONEY... Well, anyone can
be a trader with a large fortune....
It's all in your head ! If we all know what to do yet only some
of us manage to do it day in day out without major stumbling, than if you really think about this - this is your answer !
After some real consideration - and I used to think we are
predetermined for life I think anyone can change his ways !
Don't give up but also don't look for easy answers because
even if you find them, you may not follow thru.
Todd Harrison (on realmoney.com) the head trader of Cramer Berkowitz wrote an article where he outlined the 10 rules of trading. It was one of those that you just have to print out and keep by your monitor to glance at every now and then.
I'll try to see if I can find it on their site again and maybe post it here if it doesn't break any copyright laws, etc.
I'll try to see if I can find it on their site again and maybe post it here if it doesn't break any copyright laws, etc.
I'm far from being a "top money maker" but I have been profitable. For me the key is knowing where I'm going to sell (or stop out) before I even get in to a trade. If you are trading objectively you must adhere to targets and stops.
Always take profits and give very little back on the losers.
Always take profits and give very little back on the losers.
Magna
Administrator
It's all well and good to know where you are going to stop out or take profits, and have the discipline to stick to it (much easier on the loss side than the profit side...) But it will do you no good unless you have a positive expectancy system, that is, a system which over time, given enough opportunities, will be profitable. Similar to what the casinos do in Vegas where their small percentage edge, over time, with enough bodies walking thru the doors, will provide them handsome profits.
I think that's what Hitman meant when he said:
Simple answer, a profitable trading style.
I think that's what Hitman meant when he said:
Simple answer, a profitable trading style.
