1) Understand the true realities of the markets.
2) Be responsible for your own trading destiny.
3) Trade only with proven methods.
4) Trade in correct proportion to your capital.
5) Manage risk.
6) Stay long-term oriented.
7) Keep trading in correct perspective and as part of a balanced life.
The common theme is self-control. As I’ve often said, if you can master yourself, you can master the markets.
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Why do most traders fail? Some of the mistakes beginning traders make include:
-Poor understanding and knowledge
-Undercapitalization
-Unrealistic expectations
-Lack of patience
-Lack of discipline
-High risk aversion
-You may have an excellent understanding of financial markets, realistic expectations, plenty of capital and nerves of steel. However, if you don’t have a tested and proven entry/exit system eventually you will fail.
-You need to know when to get in, when to get out, and you need to understand why.
