Trading for Success
Friday Dec 01, 2006
Trading for Success
ByTrading Your Way To Profits
Say the word "trading" and most people think of daytraders. But not all trading involves day trading. In fact trading...that isbuying or selling a stock in a short period of time can pay off with unusuallyhigh returns.
Now don't get me wrong. I'm not suggesting that all formsof trading ...and all people who trade make nothing but profits. Tradingdoes carry risk. It's been said that most commodity traders and equity daytraders lose money.
The traders that make money do so because they take the time tolearn the ins and outs of trading, develop a propriety system, and are very disciplined at what theydo. Sometimes those people come from extraordinary backgrounds.
For example take Nicolas Darvas. Growing up poor in 1930s Hungary, Nicolas dreamed of making his fortune in America.
After fleeing to Turkey during World War II, Nicolas trained eight grueling hours per day to become a dancer. He migrated to the United States in 1951, where he got a job as a nightclub performer and began his pursuit of riches.
In 1952, Nicolas heard about the stock market from an affluent nightclub owner, and decided that investing offered him his best shot at substantial wealth.
Unfortunately, he followed the advice of a slick Wall Street broker, and promptly lost half his money.
Although facing personal bankruptcy, Nicolas refused to give up.
And through painful trial and error…he developed a SIMPLE trading system that allowed him to capture over $2.2 MILLION in just 18 months!
Now you understand the allure of trading. Had NicolasDarvas bought individual stocks and held them for 18 months, his return wouldlikely not reach the $2.2 million mark.
Until You're a Darvas, Get Help From TheExperts
Nicolas' experience and the system he developed gave him adistinct advantage of others who tried trading and failed. But that's whattraders do. They execute their trades when market conditions are in theirfavor. For example, if the market is uptrending, a trader will wait for adip and test some support levels before entering.
A trader knows when to take his money off the table. You cannotcome out ahead if you lose $1,000 on a poor trade and make only $700 on a goodtrade. Many bad traders let winning trades dwindle down to nothing becausethey don't know how to get out of a trade or have a decent exit strategy.
According to the book, High Probability Trading, here's theskills traders need to learn to be succcessful at trading:
1. Enter orders
2. Read charts
3. Use technical analysis
4. Understand how different markets trade
5. Trade off news
6. Write systems
7. Become disciplined
8. Make a money management plan
9. Manage risk
10. Learn how to take a loss
11. Know when to trade and when not to trade
12. Make a trading plan
13. Control one's emotions
Sounds like a learn to lot. And while we here at TaipanFinancial News encourage you to learn these skills, we also understand that"partnering" up with an experienced trader is also instrumental inbuilding up a hefty dose of profits. That's why we offer a variety oftrading services.
By following the recommendations of our well-experiencedtraders, you get to (1) try your hand at trading without taking years to learnit yourself, (2) minimize your losses because you're not going it alone, (3)give yourself a better chance at finding winning trades, and (4) test driveproven trading systems.
In fact one of our more popular trading services, WaveStrengthOptions Weekly, is on its way to becoming one of the fastest-growing optionstrading services in the country. Here's why.
