Timeless Traits of Victorious Market Wizards - Part 4

Discussion in 'Forex' started by Ituglobal, Aug 17, 2012.

  1. “There will come a time when you believe everything is finished. That will be the beginning.” - Louis L'Amour (Great American Storyteller)

    If you’ve lost up to 50% of your account, it means you aren’t competent: You ought to stop trading and go for further training (or why should you receive a margin call?). But some who’ve had huge drawdown because of gargantuan position sizes would prefer to treble their sizes and open revenge positions…. As if they’ve not learned their lessons. Each trader needs to be fully responsible for the outcome of her/his trading activity.

    It’s true that financial instruments afford you unbelievable chances. Successful traders abound. It’s simply that they know what it takes to be successful. It’s therefore beneficial to imitate those successes; also learning from dangerous trading styles that didn’t improve the statistics on your portfolios. In the end, you’ll be familiar with what it takes to be a permanent victor. Utter perseverance is the wonderful cure for ignorance. Do you want to know the trading principles that work? Would you like to be a victorious market wizard in the foreseeable future? Would you prefer to know trading strategies that work? Please read the part 4 of the articles in this series.

    Traits of Successful Market Wizards
    13. Each position carries the same weight: It does not make sense to think that one trade will be better than other. You ought to treat every trade of with the same zeal. Every trade has the same potential. Sometimes, the trade you believe will be a winner can be a loser; while the trade you feel as worthless could go on to be a winner. You mayn’t refuse to trade a new setup because the last one produced a loss. Victorious market wizards can quickly forget about any recent negativity and open a new position with bravery and zest - just as they did with the position that went to negative. Cristiano Ronaldo - a highly successful football striker - knows that the ability to score more goals comes only when one does not lose hope after some goals have been missed or thwarted; that’s when one pays attention on more opportunities to score. Victorious market wizards know how to pass over closed positions and analyze the markets for new setups.

    14. Victorious market wizards focus on the price: Beginner traders tend to believe that analyses should be complicated for them to be successful. They put Andrew’s Pitchfork, Fibonacci levels, Trendlines, Ichimoku Kinko Hyo, Alligator, Gator Oscillator, Chaikin Oscillator, DeMarker, Fractals, Market Facilitation Index, Parabolic SAR, Commodity Channel Index and so on, on a single chart. Putting too many analytical tools on a chart wouldn’t help you in the long run, because you won’t be able to focus on the price as you’re engrossed in the analyses of those things. In addition, each indicator has different parameters, different configuration, and different way of generating signals. Did you want your charts to look like Michelangelo’s paintings before you can become a market wizard? Price is the most important thing on the chart. Besides, winning strategies and analyses should be simple and effective. While you gain more experience as a trader, you’d start cleaning up your charts and focus on the price. Successful traders focus on king of the market. Price is the king. No matter how smart you think you’re, you’ll eventually acknowledge there’s no empirical or statistical evidence that complicated analyses are batter then simple ones. You ought to make your career easier for yourself. One again, price is the king of the financial markets.

    15. Victorious market wizards don’t look for perfect market information: You can be a winner without having ‘insider’s information.’ You don’t need to know all the available trading facts about a particular instrument before you can trade victoriously on it. The possibility exists that you mayn’t be satisfied with the kind of market information at your disposal. There’s no amount of market information that can guarantee that you’d always make 100% accurate trades. Victorious traders acknowledge this truth. They can still make sound trading decisions even when they know that the information they’ve isn’t flawless. They’re ware of this, and can still execute trading setups based on the data at their disposal. Speculation is no picnic: but they remain victorious in the markets.

    16. Victorious market wizards don’t trade against the trend: Gallant traders go short in weak markets and go long in strong markets. Buying in a weak market and selling in a strong market is a recipe for pecuniary ruin. Though, I’d say that there are trading methods that help find cheaper prices in bull markets and dearer prices in bear markets. Counter-trend trading is vicious if done by neophytes. Don’t buy simply because the market is oversold, or vice versa. If you’re not comfortable with trading an overextended market, you might sit on your hands until you get confirmation of the next movement in the market.

    This article is ended with quotes from Jessica Peletier, a successful female trader and blogger:

    1. “Thankfully, the only vicious, irrational, stressed out freak you ever have to work with as a trader is yourself.”

    2. “I have never met a successful trader that could quite happily quit and go do something else entirely. For me, trading is all there is. I cannot imagine a life without trading in some form or another.”