dynamicsoul

Thanks Maybe I shouldn't have got a vendor account? I don't actually sell anything.. I write news for the website in the article footer link which provides free real time stock prices and charts etc.. Not selling anything, just posting up some stuff to help raise some awareness of the site I help out.. which in turn only provides a free service.. Am on vacation at moment, but will write some other more "useful" stuff when I get back.. Pete

Charming!.. Welcome to the forum Pete.. It's a first article.. what do you want me to talk about next? Gann, EW, Delta and tons of other stuff I've studied and binned over the years because of information overload.. I'll write something on how I trade, no indicators, only price action.. See if that suits you better... Laterz. Pete.

Many traders fail for many different reasons. I am sure if you have been active in the markets for any decent period of time you will have experienced the numerous obstacles that the markets can throw in front of you. Sometimes the thing holding you back from being successful is one the most basic principles. A high percentage of traders are not able to overcome them, and often have not even considered them. Below you will find my list of the most encountered obstacles which stop a willing trader from making a profit. Find Your Edge So you have a trading system but do you know what makes it profitable? Have you any idea of its strike rate and can you trust it? A question many traders cannot answer. A simple system that gives you 51 winners versus 49 losers from every hundred will make you money if you know how to manage it correctly, but there is an element of trust needed. Before you trade your system you need to properly analyse it to find out how often it wins and how often it loses. How big are the wins compared to the losses? How big is the drawdown? After answering these questions you will gain an element of trust in your system and be able to ride out the lean times to harness the gains from the bigger picture. Stick To A Plan If you are in a hurry to get somewhere you wouldn’t take the long route would you? Would you drive 1000 kilometers without consulting a map? I would think not. Much is the same with trading. Your system (or edge) is your plan and when travelling to your destination you must stick to the highway. Never stray from the plan and ignore any signs that tempt you to try a different route. Don’t Spend What You Can’t Afford Often a big mistake a losing trader will make is to trade too heavy in one single position. To lose a large percentage of a trading account on one trade is suicide and in doing so you are giving yourself a mountain to climb whilst clawing yourself back to breakeven. Not even mentioning the psychological damage it will do. Trade small in comparison to your trading account, the market will always be there tomorrow and trades will come each and every day. Focus On Points Not Profit We are all in this for one reason and that’s to make money, but money is also the root of all evil. By focusing your mind on percentages of your trading account, counting the points won (not dollars) and risk reward ratios eventually the money will stack up on its own. Thinking “I lost 20 points on that trade” rather than “I lost $200 on that trade” will also help you to stay out of the markets emotional games. Learn From Mistakes They say the clever people in this world are the ones who can instantly learn from their mistakes. This is also true when trading. If you repeat the same mistakes over and over its possible you may not have the correct frame of mind needed to become successful in this game. Learn and never look back. If you stray from your plan and lose try to understand the mistake and reinforce to yourself that it will never happen again. Less Is More How much time can you commit to this? This is a question that should be answered well before you select a system. Trade when you feel happy, trade when the markets open, take your money and leave. Often no position is the best position. Overtrading is one of the biggest downfalls of any new trader and will most likely lead to your account (and mind) burning out. Takes some trades and go do something else to stay fresh. Live Your Life Last but not least never forget what you are doing this for. You are doing this to give yourself a better life and more money. Enjoy it, take some time to live your life and don’t get caught up in the trap of being addicted to the markets. Written by Pete Southern, editor at stockpricetoday.com