Making money in the stock market is not easy. Some people make money but most people lose money. Why is that? Is it because they don't have enough stock market knowledge? Not enough capital? Not enough information or tips from market experts? All of the above is true but they are not the main reason why people lose money in the stock market.
I have taught stock trading for many years and even though I teach the same material or spend the same amount of time on all my students, some students are more successful than others. Why is that? This was a question that I wanted to find out and I went on a mission to find the answer. In the past year, I interviewed all my successful students and I noticed that my successful students have certain personality traits in common. I will share with you five reasons why some of my students have become very successful traders.
The first reason is passion for the stock market. Successful traders are excited about the markets and can't wait to get up every morning to watch or trade the markets. This is the same for people who love their job. If you love your job, you usually want to spend a lot of time learning how to do your job better. If u love your job, you don't feel like it is work. In fact, you will feel joy and happiness when you do something you enjoy.
The second reason is successful traders are comfortable with risk. You can make a lot of money in the stock market but you can also lose a lot of money. Successful traders don't like to lose money but they are not afraid of losing money. They know that there is always risk of losing money but they know how much money they are willing to risk per trade. They are not scared to enter into a trade when they see a low risk opportunity.
The third reason is successful traders have a strong control over his/her emotions. Some traders get too emotional while they are trading and often their emotions tend to interfere with their trading decisions. Emotions that mainly stand in the way of their success are fear and greed. Greed stops them from selling off their stocks in the hope that the value might rise further while fear doesn't let them hold onto rising stocks as they feel scared that the price might drop down leading to their loss.
The fourth reason is successful traders are very patient. A successful trader can wait for days, weeks or months for the right trading opportunity. They don't trade because they have to. The smart trader waits for the best opportunity. Often the best trade is no trade. Most beginner traders trade too much and have a need to always be in the market.
The last reason is successful traders religiously follow a trading system and strategies to a tee. They follow the trading rules and are very disciplined in sticking to their game plan. Amateur traders rely on their gut feelings or emotions to tell them when to enter or exit a trade. I find it very surprising when I teach some of my students my successful trading system and they do not follow it. They always come up with an excuse as to why they don't follow the rules that I teach them.
Making money in the stock market is not easy but it doesn't need to be difficult.
An independent trader for more than 10 years, Mike Ser has developed a remarkable track record as a professional stock trader. Having worked closely with various firms in the financial industry including venture capitalists, brokerage firms, investor relations, publicly traded companies, stock market data providers, stock exchanges and day trading firms, Mike has made a reputable mark in the financial sector.
An immensely motivated teacher of all things stock-related, he has been a sought-after speaker on the subject of Technical Analysis and has spoken at numerous trading events including the International Traders Expo. As well, he has worked with numerous brokerage firms to train their clients on his successful trading system.
Source : azinearticles
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