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How Are Successful And Unsuccessful Traders Different
By Mike | September 4, 2010
There are a few differences bettween successful traders and unsuccessful traders around how they learn from their mistakes.These little differences here and there make a big difference when it comes to performance.
Successful traders make their own decisions on how they want to approach the stock market and what qualifies as a good buy.That helps them to try out many different strategies and work out a method for getting into a stock that fits them the best.
Unsuccessful traders listen to experts hoping that they will find hot stock tips that will take off and make them millionaires. This breeds a get rich quick kind of attitude which really isn’t the best way to go about it.
Successful traders create a system and learn from their past mistakes to make their system more powerful.This way they can get a better understanding on how the market really works and can keep improving.
Unsuccessful traders search the net for winning systems and switch strategies whenever they hit a rough patch. This stops them from learning anything new because they are constantly looking for the “holy grail” of trading systems that is never wrong.That system just doesn’t exist.
Successful traders look for ways to control their emotions when trading. This way they can follow their system easier and not be thrown off by fear and greed.
Unsuccessful traders panic when things go against them and become greedy when things go their way.This causes something similar to a “fight or flight” mechanism to come into play and they have to make the call whether to get out and stop the pain or to hold onto the position and hope everything works out in the end. instead of what they should be doing which is following their own rules they do whichever one gets rid of their adrenaline.
Successful traders are constantly learning. They learn the stock market basics and then study the market themselves.That way they can keep learning and improving over time.
Unsuccessful traders assume that the way to get rich in the stock market is to pick hot tips and get rich without learning much about the market. This keeps them trapped looking for get rich quick schemes that don’t exist in the market.
Topics: Investing |
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