The week started of well and then came Thursday, literally all of my trades was in the green on my app on my phone and I looked to a great end of the week on the stock market. I quicken to say yet another good week. Then…one man with a smart phone and a twitter account turned all my green into red. Yes a trade war between two great nations turn all the green on my smartphone into reds, or shall I say most of it went red.
The question to answer now is not so much about what happened on the screen in my hand, it is more what went on in my head. Did my mind react to see red and angry, or did I stay cool and collected in the green. This is where you see if a stock market trader is a pro or not. I didn't have to react, I already acted by placing my trades in a planned and calculated way.
Also this was not the first tweet that caused havoc on the screen in my hand. I have seen this many times before and I know that I am well placed and also protected. Thursday was the first day of a new month and I have just calculated the gains in my trading account of the previous month. Even with the sell off on the last day, my account was 2.6% up for the month. To put this in perspective I always compare myself with my trader mentor. My aim is to grow my account every month with a bigger percentage than he can grows his account. He has more than 20 years more experience than myself and his account is also millions of dollars bigger than mine. His account grew 0.65% for the month and I am happy to say this month I am the clear winner. That brings me to what makes you a winner in the stock market
– Know your market.
Understand that some days will be up days and other days will be down days just as you have the risk of having voids or damage to your property if you a landlord. Nothing goes up in a straight line. You are running a business and you understand and mitigate the risks. When you chose stocks to make your money grow you must understand the opportunities and the risks. This is fundamental to any business. You do not have to be particularly clever or hard working, just have the basic business understanding of risk and reward and the discipline and patience that it requires.
– Have the right tools in your toolbox.
I use mainly free websites for my trading, although I do have access to information that I have to pay for as well. The paid for information just help me to speed up the process, it doesn't necessarily give me more information. What I try to say is keep it simple. There is no excuse not to be a successful trader because you cannot afford the tools. I trade from my iPad and smartphone. On weekends I use my laptop to access my watch lists so that I know what decisions to make in the following week.
Many traders treat strategy as the holy grail of trading but it's not. The holy grail is a combination of the points I touch on here today. There are many successful strategies on its own, the question is why are there so few successful traders. If you do not have a successful strategy, please visit www.significant-trading.com/watch to get access to such a strategy. The main thing is, it needs to be clear, understandable and easy to use. You also have to develop faith in your chosen strategy otherwise you will constantly deviate from the strategy and fail.
This is more important than almost everything else. To be a successful stock market trader you will not be more successful if you spent more time in the markets or behind your to many screens. You need maturity, discipline and patience. My trading mentor only allow over 45 year olds to sign up to his program. If you are younger and you want to sign up to his program you need to motivate to him why you will be successful trading with him. It's not the once of win, or once in a blue moon win that makes the difference, it is the compound effect over time that builds the Wealth you crave. Real Wealth demands a disciplined mind and a patient heart. I have a 20 year old student in my trading program who is really successful and the reason for his success brings me to the next and last point.
– Have a mentor.
Do not try to do this on your own. How many people do you know that has build their wealth in the stock market all on their own. I guess not to many. Get somebody with a real heart to help, especially if you are just starting out. Also get such a person if you have been trading for a while, may be for years already, but you are not as successful as you want to be. Walk this road with someone who has been through the bumps and turns at least a few times already. Think about it, most of the things that you do well now, even without thinking, has been taught to you by someone who held your had. From learning to ride you bicycle, driving a car and even your current job or career are examples of you being mentored by someone who knew.
The way you were taught how to cross a road helped you stay alive and do it successfully for many years without a wipeout by a bus or truck. Why do you want to go it alone in the stock markets. If pride or greed prevents you from asking for help, my advise to you is to stay away from the markets because a bus or a truck disguised as a tweet in some powerful man's hand my just wipe you out when you expect it the least.
I wish you successful trading