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Common Misconceptions of New Traders
By Linda Wainman
• They think they can turn $1000 into $100,000 in six months.
• They think they can predict turning points in their given markets to within minutes.
• They think they can buy a system that is 100% accurate.
• They think they will quit their jobs and make a living full time after a few months of trading.
The truth is that 90% of traders who ever trade lose their account and 10% actually go bankrupt.
Why is it then that there is such a large number of traders failing? It is not because they are stupid; but lack trading education.
Education on the correct psychological approach to the market! The way you approach the market psychologically has as much to do with your success as any trading plan.
Education in the correct risk management techniques relative to your account size!
Education in the correct entry and exit methods for the trading style that suits you.
The journey to the road of successful trading will make you confront your deepest fears. Your armor on this journey will be confidence, knowledge and belief in yourself that you can achieve your dreams. Never, equate your success or failure in the markets with who you are as a person!
New traders look for a magic key or what is known as the "Holy Grail."
To earn rewards in day trading or swing trading, requires a great commitment and stamina, a great mind for how the market works, or at least access to a great wealth of knowledge.
Day trading is actually a business that requires a great deal of research, time, and ethic to execute successfully. Traders have to be well capitalized with the patience and dedication it takes to learn how to trade. Beyond all things, a trader must have the stamina to recover from losses, and to wisely use profits to achieve greater day trading rewards.
Risk management is crucial if you want to have any hope of becoming a successful trader.
Matching a method of trading with your personality is the only way you will ever feel comfortable in the markets.
Fueled by the lure of easy money, the public has portrayed futures trading as an easy way to get rich over night.
Another misconception that people have, thanks to the news, is that day trading is foolish and just gambling. While it is foolish and it is gambling to trade without knowing what you are doing, professional day traders are not gamblers and are not foolish. Quite the contrary, they are highly skilled and talented professionals!
An adequately funded account is necessary - not only to be able to take the trades you want, but also so you don't feel every trade is a live or die situation.
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About the Author
Linda Wainman is author of the "Keeping It Simple Day Trading System"
Get the exciting details from http://day-online-trading.com
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