What every trader needs to be successful

February 9, 2006 by Trader Rich

I thought this was pretty good.

What Every Trader Needs To Be Successful

No. 1. A method. Any time you enter or exit a market, it must be for a predetermined reason that will also apply in the future.

No. 2. Discipline to follow the method. Without discipline, you really have no method in the first place.

No. 3. Experience. The School of Hard Knocks is the only school that will teach you the emotional aspects of investing, and the tuition is expensive.

No. 4. Acceptance of responsibility. Don’t blame the news, "insiders," "floor traders," or "THEM" for your losses. Accept responsibility, and you will retain control of your ultimate success to the extent that the market allows.

No. 5. Accommodation of losses. The perfect trading system does not exist, so your method must deal with taking losses.

No. 6. Acceptance of huge gains. When the big winner finally comes along, you need the self-esteem and confidence in your method to take all that it promises.

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