The recent increase in speculative trading activity in the financial markets, partly due to the development of online retail trading solutions offered on the internet, has created a new population of traders in the market.
Most of these traders are non-professionals that are attracted by the potential to generate income quickly. Many novice traders are lead believe that it is relatively easy to make money, especially when they are using a free practice account.
Unfortunately, when these inexperienced "traders" decide to start trading live accounts and risking real money on the market, they take the leap from the their virtual trading accounts to trading with real money, they are entering into the most difficult step of their initiation to trading: the correct trading psychology.
Especially when real money comes into play the influence of fear and greed would affect these "newbie traders" which often leads to misjudgment and losses.
In order to take a less painful first baby step , it would be easier if there is a trading plan.There is an old saying : "Fail to plan and you plan to fail." It may sound glib, but those who are serious about being successful, including traders, should follow these eight words as if they were written in stone.
Ask any trader who makes money on a consistent basis and they will tell you, "You have two choices: you can either methodically follow a written plan, or fail."While it is still no absolute guarantee of success but you have taken the first step. If your plan uses flawed techniques or lacks preparation, your success won't come immediately, but at least you are in a position to chart and modify your course. We are all here to learn , always adjust yourself and be flexible.
Tuesday, December 29, 2009
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