| What are the secrets to being a successful Stock | | | | 6. Have Patience |
| trader? Here are 10 vital things that you must do, | | | | Depending on your trading methods, you may |
| have or develop if you want to make it in the world | | | | sometimes have to wait a long while until the market |
| of stock trading. | | | | comes up with a trading signal for you. Do not be |
| 1. Stop Hoping To Get Rich Quick | | | | tempted to make an "errant" trade that does not fit |
| Far too many people are drawn into trading the | | | | your trading methods. |
| stock market because they think they can make | | | | 7. Apply Tight Risk Management |
| quick and easy money. They start out right away | | | | Always apply stop-losses and put strict limits on the |
| with real money, take big risks, get wiped out in no | | | | amount of your capital that you risk on any one |
| time at all and start saying the whole thing was a | | | | given trade. This can be as low as 1% or 2%, never |
| scam. Get real! Trading the markets is not a get rich | | | | more than 5%. Set your risk level and never increase |
| quick scheme. Be prepared to work on the next 9 | | | | it. If you start toward the top of the range, |
| factors or get out now. | | | | decrease your percentage risk as your funds increase |
| 2. Look For Quality Stock Trading Training | | | | by keeping your position size the same. You want to |
| A successful stock trader never stops learning. You | | | | give yourself a decent cushion of time and capital to |
| will want to read and watch pretty much everything | | | | ride your learning curve to maximum benefit. |
| that you can get your hands on at first. | | | | 8. Maintain Emotional Control.....or at least Emotional |
| 3. Concentrate On Trading Practices, Not Specific | | | | Awareness |
| Set-Ups | | | | You need to be able to stay calm and apply your |
| Newbies always want the best stock trading set-up, | | | | plan even after a large loss, and never allow yourself |
| but it does not exist. There are many good methods | | | | to be motivated by greed or fear of loss. If you do |
| and trade set-ups but the market is constantly | | | | find yourself feeling these motivations, that's ok, as |
| changing so first one and then another will come out | | | | long as you make a concerted effort to recognise |
| on top. Pick one good method and set-up that goes | | | | that is how you're feeling and then ask yourself |
| with it and stick with it as long as it continues to | | | | whether it still remains in your best interests to make |
| make you profits in the long term. | | | | a trading decision in the current frame of mind. |
| 4. Build A Support Network | | | | 9. Be Realistic In Your Goals |
| Family and friends may or may not be supportive but | | | | It is important to track your profits and losses so |
| even if they are, there will be times when you need | | | | that you can see how your trading method is |
| help from other traders. Find a good trading forum | | | | performing, but do not become hooked on the idea |
| and visit it often enough to know who is who. If you | | | | of trying to make bigger and bigger profits. A profit |
| can find a mentor, that is great, but watch out for | | | | of 5% to 10% per month is excellent. Any more |
| expensive coaching programs that often do not live | | | | than that and you are likely to be taking risks that |
| up to the hype. | | | | could wipe out your whole fund. |
| 5. Develop Discipline | | | | 10. Do Not Expect Thrills |
| Keeping to your trading plan requires discipline. If you | | | | When you start out, stock trading can be so exciting |
| can develop strong self-discipline you have a very | | | | given the novelty of using charts and on-line trading |
| good chance of making money with stock trading. If | | | | tools. However, profitable stock trading soon |
| not, you will almost certainly make a lot of bad | | | | becomes boring. If you are going to be a successful |
| decisions on the spur of the moment and lose your | | | | stock trader you must say goodbye to excitement |
| capital. | | | | and operate a strategy with prudently managed risk. |