Four successful trade principles
Why does traders continue to make money from year to year, while beginners lose everything in the first few months? What are most beginners? How do traders who successfully know what’s right?
My colleague and I was often asked how successful in trade. In fact, we have been asked this question many times, that I finally decided to write a trade report; A report that will give you direct and easy advice followed about how to become a better trader.
Unlike most trade advice articles, this report is written in a clear, simple way. I will describe the essence of the problem in a concise and coherent way. You will read about a big mistake that prevents traders from making money and learning basic principles carrying successful traders and thousands of dollars to explore. All facts in this report are based on observation years and can be easily verified.
Have you ever felt like finally learning how to predict market movements after the winning trade? And then feel desperate just a few days later – after a devastating loss?
Now imagine the feeling of a trader who spent years studying price movements, buying expensive indicators, following expert advice, and attending seminars. However, these traders continue to lose money until all their savings are lost. He then raised more funds, lost everything again – all the time wondering why, contrary to all teacher promises, he could not change the trade into a profitable business. Even so, trade is equally understandable, predictable, and profitable like other businesses.
Just imagine after years of investing in trade you still will not be able to understand the way the market works. How frustrating is that?
Or even worse: What if, driven by emotions, you lose control and, as a result, all your savings? Do you have an emergency plan to protect yourself?
How fast do you think you can recover from heavy losses, if at all?
Not only beginners but also ‘experienced’ traders tend to ignore or forget about taking steps to protect their capital to this type of disaster – until the disaster attacks. At that time it was too late and damage was done.
But it will never happen to me!
After working with more than 2000 individual traders and institutional customers in Europe and the United States, we found that 9 out of 10 traders will experience several types of losses that will assess them between several thousand to several million dollars.
This does not include money spent on manuals, training, seminars or months with difficulty analyzing the market.
Losses that occur in poor trade practices differ in each particular case. However, whatever loss is maybe they are always too high for traders involved. As a rule, people lose all their money. Even worse: sometimes they go further and dragged into debt.
Look at these statistics:
90% – 95% of all traders lose money (Source: Ryan Jones, Trade Game writer, play with numbers to produce millions)
70 Percent Day Traders Lose Money (Source: 1999 Study conducted by the North American Securities Administrator Association (NASAA))
95 percent will fail in the first two years (Source: Harvey Houtkin, February edition of Securities Regulations and Legal Reports)
What is this statistic meaning for you?
The above facts clearly show that most people underestimate the risk of trade. In most cases, they are only misled by advertising from brokers and consultants. As a rule, brokers don’t care about your long-term success because their goals are quickly getting back the money invested in attracting new customers. That’s why they want you to start trading as soon as possible. To achieve this goal, brokers provide initial traders with sufficient minimum information to make trades (and thus to produce commissions that are lived brokers) and let them fly