Tweet

Trading to Win Requires Uncommon Behavior

Guest post by: Gary Kerkow

Article Overview: Amazingly, over 75% of stock market participants lose in the long run. Over 90% of commodity market traders ultimately lose. Learn the secrets that allow the elite 10% to make most of the money. These are the traders and investors that make fortunes in the market. They are trading to win.

Trading to Win Requires Uncommon Behavior

Most traders and investors lose in the long run

Amazingly, over 75% of stock market participants lose in the long run. Over 90% of commodity market traders ultimately lose. They are many reasons why this happens. The numbers are not pretty. Since most traders ultimately lose in the trading arena, you need to think, and act differently than the majority. This is the best way to achieve long-term success. The focus of this article is to share with you, what it takes to be in the elite 10% of traders. They make most of the money, and achieve excellent long-term success. The elite 10% are trading to win.

Modify your thinking and behavior



The key to trading success, is to modify your behavior. First, you will need to think like the world's best traders and investors. Once you understand, and implement a successful mentality, you will be able to properly modify your trading actions. It is important we adapt to changing situations, where we have no control. We must also change the situations, where we do have control. At this point, you will be in a position to make unlimited money in the marketplace. You will be trading to win.

Adapting to a situation you have no control of

The first point I would like to make is, you never control the market. It is imperative to go with the flow of the market, and never fight the market. You do have control over your position in the market, and most importantly, the amount of risk you are going to take. An example of adapting to a changing situation, over which we have no control, would be the following. Let's say you are heavily invested in the stock market. Interest rates are near zero, but the Fed has decided it is time to start the cycle of raising interest rates. Rising rates are negative to the stock market. You would want to lessen your exposure in the stock market. That is adapting to a changing situation, in which you have no control of. It is an example of a successful trader's mentality. You are now trading to win.

Keep your losses small



Traders and investors who know how to lose small, will be long-term winners. The golden rule of trading is the key to success. The first half of this most important rule tells us to cut our losses short. It will not matter how good your overall strategy is. You will not be successful in the long run, unless you implement solid money management. When I buy a stock, I will always sell it, no matter what, if it drops 10% below my purchase price. If I bought a stock at $40.00 per share, I am automatically out if it drops to $36.00. This way I never take a big loss, but at the same time, my profit potential is unlimited. I am trading to win.

Only add to winning positions

When you get on board a nice trend going in your direction, this would be the time to add to your initial position. You could add to your position each time you get a new buy signal. This could be on a retracement to a key support line, such as the 50 day moving average. It could also be as the stock breaks through key resistance, on heavy volume.

What happens when you put on a trade



When you put on a trade, you will either by proven correct with your trading decision, or you simply get out with a small loss. There is no need to hope. Hope is a four-letter word in trading that can really hurt you. Usually, really good trades will take off in your direction rather quickly, from when you put them on. This is key when your trading to win.

Related Articles
  Trading To Win-It Takes Uncommon Knowledge
  If You're So Dumb, Why Aren't You Rich? Part II
  Successful Trading Requires Cumulative Knowledge
  Choosing the Right MT4 Automated Trading Expert Advisor
  Leverage And Forex Trading
  Trade Commodities For Big Profits
  Trading To Win-5 Great Nuggets Of Wisdom
  Forex Trading and You?
  Start Autotrading today
  Mentoring, An Essential Part Of Forex Success
  5 habits to successful automated fx trading
  Searching the scopes of iPhone application development for stock trading
  5 Trading Rules to Improve Your Stock Market Results
  Protecting Your Business Name
  Trading Secrets For Great Profits
  Which is the Best Forex Trading EA
  Closing the gap between MT4 Demo and MT4 Live trading
  5 Things you need to know before start online forex trading
  Values, Behavior, Stress and Your Success
  How to get positive results on you MT4 simulator

Article Tags: trading, trading to win



Related Forum Posts
Re: SES Toronto Next Week - In that case, how about the following? Track: Get Me Up to Speed * State of Search Marketing in Canada Track: Practical & Actionable * Beyond Linkbait: Getting Authoritative Online Mentions Track: Advanced * User Search Behavior * Social Media Success * Web 2.0 & Search Engines * Giving Credit Where It’s Due: Which Campaign Sold What?
Re: 10 ideas to make you money in 2010 - I think Education would be hard to break into. Baby Boomers, Life Support and Trading Down, however, seem like good markets. As for Green technology goes, I don't think the business has to be entirely based on Green ideologies, but rather a business that embrace Green philosophies and use that as a marketing tool.
Different types of funding - Business Relationship Funding This is another source of funds that can be overlooked. It may be possible to introduce potential alliances to add value to both parties. It may produce an ultimate exit route in the medium to long term. Joint Ventures: Requires a legal agreement embodying the deal and another company Partnerships: Two companies collaborate with possible funding. Joint working relationships: These are an informal partnership which may be more project specific where the parties can share resources. Agencies: These can be geographical or product specific and generally incorporates a payment for the right to the agency. Distributors: Very like an agency but may not necessarily involve up front payment. Alliances: These do not require a separate company and can be embodied by a legal agreement to work together. Trade investors: Otherwise known as Corporate Partnering. This can be a good way to involve a much larger company in the business with a view to possible trade sale further down the line. Associates: This can be a loose arrangement with no fundamental commitments either way, rather like a preferred supplier. Equity Swop: Two companies exchange shares to a similar value to develop both businesses. Franchises: This can allow the business to grow without further direct investment. Licensing: This involves licensing a product or service to enable others to sell it. This requires you to own the intellectual property.
Keywords - Keywords in your URL are good, but you also need to include these in headings on your pages. If you were going to search Google for this content, what words would you use? What common words would people use in a search engine if they wanted to find your site? You don't need to overdo the headers, just add a couple to each page and especially on your home page to attract search engines. I think someone also mentioned listing your site in directories. This is good and make sure to list your site under beauty - this should attract people that want to find you. Trading links with sites is good and especially sites that attract the people you want to bring onto your site. Miss Shri
Re: Investor needed to Generate Wealth in the Market - I actually have a partner that trades Forex. He went through a lot of classes and learned a great deal on charting and technical analysis. I use similar charts that he uses and the concept is almost the same. I just prefer to trade stocks over $5 dollars in the major exchanges, mainly the s&p 500. You get familiar with certain specialist on each stock and the stocks in the s&p500 only have one specialist per stock. So you get familiar with how they like to set their price. There are also variables in the market that allows you to trade with the best possible outcome of making money if you know what effects what. I think an average of 15% return on investment a month is pretty good. I have pulled 180% in a little over 2 months before. The market corrects itself about 3 to 4 times a year, this is were I make most of my money. Making 50% or more during the times of these market corrections is not hard to do at all. If you are making more then 15% a month on average then keep doing what your doing. Im sure any investor out their wouldnt mind making as little as 3% a month on his/hers money. Well im willing to paper trade with any investors that are serious before any commitments are made. I appreciate the advice. Happy Trading


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Emotional Energy is Our Engine

Purchasing Real Estate using the SBA 504 Loan

Effective Leadership

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.