| There's a huge myth out there that stock trading | | | | at the racetracks. Basically you need a system or |
| isn't a business. Some even go as far as to call day | | | | amethod to adhere to. This is where most go wrong. |
| trading no different than gambling. While this can be | | | | Even the ones who realize this buy into the |
| true in some instances, stock trading done well is just | | | | "emotional" methods. What do I mean by this? |
| like any other business. The reverse is true as well: | | | | Methods that appeal to what we want not what we |
| To be successful in stock trading, one must follow | | | | really need. Most losing methods I see do the wrong |
| sound business principles. | | | | things at the wrong time. They overtrade. Take |
| Just like any other business, to succeed in stock | | | | profits too fast and do not cut losees fast enough. |
| trading, you must approach your business as a | | | | so do the opposite. |
| business. This is not some fly-by-night get rich | | | | Finally, to be successful in your stock trading |
| scheme; this is a potential career for you to invest | | | | business, you must have superb management. |
| time, money, and education into. In other words, to | | | | Management in stock trading involves managing |
| succeed in stock trading, you have to treat it | | | | yourself - Having the discipline you need to take |
| seriously and professionally. | | | | yourself to success. It does no good to have the |
| Just like any other business, before you invest a | | | | perfect trading system if you can't follow the |
| single dollar you should have a plan of how you plan | | | | system. Oftentimes new investors shoot far past |
| to invest. In business, this plan is called a business | | | | their trading limits, hoping that a stock will "come |
| plan. In investing, this is called a trading system. | | | | back up." This is an example where poor |
| Without a trading system, a stock trader who trades | | | | management cost the investor hundreds or |
| on blind emotion really is no different than a gambler | | | | thousands of dollars. |