Stock market long term Journey
1. Decide that you are in the market for the long haul- that is, you want to be a trader even 20 years from now.
2. Learn as much as you can. Read and listen to experts, but keep a degree of healthy skepticism about everything. Ask questions, and do not accept experts at their word.
3. Do not get greedy and rush to trade - take your time to learn. The markets will be there with more good opportunities in the months and years ahead.
4. Develop a method for analyzing the market- that is, "If A happens, then B is likely to happen." Markets have many dimensions -use several analytic methods to confirm trades. Test everything on historical data and then in the markets, using real money. Markets keep changing-you need different tools for trading bull and bear markets and transitional periods as well as a method for telling the difference.
5. Develop a money management plan. Your first goal must be long-term survival; your second goal, a steady growth of capital; and your third goal, making high profits. Most traders put the third goal first and are unaware that goals 1 and 2 exist.
6. Be aware that a trader is the weakest link in any trading system. Go to a meeting of Alcoholics Anonymous to learn how to avoid losses or develop your own method for cutting out impulsive trades.
7. Winners think, feel, and act differently than losers. You must look within yourself, strip away your illusions, and change your old ways of being, thinking, and acting. Change is hard, but if you want to be a professional trader, you have to work on changing your personality.
--- excerpts are form the book "Trading for living" - Alexander Elder
1. Decide that you are in the market for the long haul- that is, you want to be a trader even 20 years from now.
2. Learn as much as you can. Read and listen to experts, but keep a degree of healthy skepticism about everything. Ask questions, and do not accept experts at their word.
3. Do not get greedy and rush to trade - take your time to learn. The markets will be there with more good opportunities in the months and years ahead.
4. Develop a method for analyzing the market- that is, "If A happens, then B is likely to happen." Markets have many dimensions -use several analytic methods to confirm trades. Test everything on historical data and then in the markets, using real money. Markets keep changing-you need different tools for trading bull and bear markets and transitional periods as well as a method for telling the difference.
5. Develop a money management plan. Your first goal must be long-term survival; your second goal, a steady growth of capital; and your third goal, making high profits. Most traders put the third goal first and are unaware that goals 1 and 2 exist.
6. Be aware that a trader is the weakest link in any trading system. Go to a meeting of Alcoholics Anonymous to learn how to avoid losses or develop your own method for cutting out impulsive trades.
7. Winners think, feel, and act differently than losers. You must look within yourself, strip away your illusions, and change your old ways of being, thinking, and acting. Change is hard, but if you want to be a professional trader, you have to work on changing your personality.
--- excerpts are form the book "Trading for living" - Alexander Elder
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