Monday, December 8, 2008

Take Complete Responsability When Trading

All successful traders will take complete responsibility for their trading actions. You will not find a successful trader who blames others for losing their money in the stock market. This is the first step to becoming a great trader.

This step is very important because until you take responsibility for your trading, both profits and losses, you will not feel comfortable enough to place trades yourself and follow your own rules, which is necessary if you want to make money in the stock market.

Even more important a trader who takes responsibility for their actions will be more likely to consider their mistakes learning experiences. If you hold yourself responsible for losing a trade you will be more likely to review bad trades and figure out what you did wrong. From that you can learn how, not to make the same mistakes again.

People who blame their brokers for giving them bad advice, or their friends for giving them the wring hot stock pick, do not have that luxury. They may never find out what they did wrong. As a result they are likely to keep making the same mistake over and over again without understanding why they can’t seem to make money in the stock market.

Taking responsibility can also help you when developing your trading strategy. If you try to trade everyone else’s strategy it may work against you as you try to make their strategies work for you. The only way you can make money is by developing a strategy that you feel comfortable about and if you trade based on others opinions you may not feel comfortable with it and make mistakes such as exiting to early or holding on too long.

In the end the most important thing you can do is to take responsibility for your own trades. If you don’t you are just counting on lady luck to come and save the day. And if you have ever gambled you will find that is a terrible long term

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