Tuesday January 22, 2008

Learning Curve

The vast majority of successful traders spent years formulating their own strategy or they borrowed someone else's & found that it worked for them also. However, most people don't have years to figure out what works & what doesn't.

 Most people will pay for information as this saves thousands of hours of learning & making expensive mistakes. After all this is the information age & you should take full advantage of it when you can. Why not think about looking at some of the stock trading eBooks out there at the moment from STOCK TRADING EBOOKS

Another important point to remember is that its very easy to get addicted to playing the market & you can sometimes confuse it with gambling. Many traders out there like to take a gamble now & again but it’s very important that you should know the difference between gambling & trading the markets.

The stock market is not a casino & shouldn’t be treated like one. Gambling is letting luck control you. You should never gamble on the markets or depend on luck to take you to the top.

Once you see the market as a place where you can make money by using your brain rather than depending on luck you’ll be in a better place. Trying being consistent rather than trying to be lucky. Work on a strategy that best suits you & be consistent with it, if it works a few times for you, then it should work well into the future also.

Chart courtesy of StockCharts.com

Remember to always keep notes on every trade you make. One of the best ways to accomplish this is to start saving your data in Excel Spreadsheets. Its also a great way to practice first before you start to trade with real money.

By simply entering all the trades that you think will go up & putting in stop orders also, you can get a good idea on how well you’ll do before you start trading for real. Try to become 80% successful before you start trading with real cash.