I thought I’d do quick series about the key failing (trait might be a better word) which is the root cause for most down at heel traders. Let’s get the “avoid failure” part out of the way before we move onto the “how to become a winner” part.
Failure in trading is usually avoidable…and predictable, without the basics in place. And you know what, the basics aren’t that complicated. I’ve spoken to and turned around enough failing traders to be able to draw some conclusions about the reasons they are where they are.
In most cases, it all boils down to a lack of control, in one form or another.
This lack of control can be any of the following.
- Lack of control over research
- Lack of control over the trading methodology used
- Lack of control over losses
- Lack of control over risk
- Lack of control over emotions
- Lack of control over trading frequency
- Lack of control over personal organization
I’m going to do a post next week about each one in turn.
Without control in your trading, you’re probably doomed to go broke. Lack of control in any one of these areas can make life very difficult, stressful and unprofitable for any trader.
But when you have all your ducks lined up and you’re in control of all the areas above, you’re confident and in command…large and in charge!
You can allow the chips to fall where they may and then make the right decisions with supreme ease…you’re already a winner. It’s only a matter of time before the results reflect the reality of what’s going on inside your noggin.
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