Tuesday, September 09, 2008

What Does It Take to be a Successful Trader?


4th in a series

What Does it Take to be a Successful Trader?

Imagine this scenario...
You have entered a high probability trade that is profitable immediately. You are now approaching your exit in your target area. You wait with exuberance and anticipation and finally you close your trade. Ten contracts have just sold at a 5 point gain. That’s right, a $2500 profit in only about 20 minutes trading the futures (ES symbol). This is the highlight of your trading day. It was only and hour and 20 minutes into the trading day and you were done trading with a sizable profit.

Does this happen every day to every trader? My immediate thought would be to honestly answer that as a no.However, there are enough of these success stories around that continues to drive the appeal of trading as a career that is primarily built on independent wealth building.

Those who decide to make the commitment to day trade soon learn that the only thing traders should be concerned about is their high probability trades. Every trade should be a very calculated decision based on their precise high probability trade.

I teach each student this acronym.......The goal is to (E.X.C.E.L.)

  • ENVISION the Trade - See the Area in your mind and know with certainty this is a 3 to 1 risk / reward area
  • XECUTE the trade - Place your limit entry, trailing stop loss, and monitor your trade
  • CLOSE the trade - When the move has ended
  • ENJOY your profit - You’ve just accomplished what few will ever experience
  • LEAVE the area - Do not over trade, it does not promote certainty, cowboy trading is an absolute no. Stay committed to plan your trade and trade your plan

Traders don’t invest / Traders Trade

In addition, there are two goals I set:

  1. Achieve a level of consistent profits
  2. Invest in yourself by learning from those who display consistent success and profit from trading

Trading is an intense endeavor, which requires a strong focus. I teach the following key elements:

  1. Attain knowledge - read , invest in self, seat time (watching how your particular market moves) training
  2. Develop your confidence THIS IS A MUST !
  3. Pull the trigger when it is the appropriate time, trade your high probability trades
  4. Have a willingness to learn- figure out why instead of reacting with emotion, journaling is essential
  5. Be able to accept the market fluctuations, the market is always right. Learn to move on, “Begin Again”
  6. Manage money, protect your profits, achieve your daily target and step away from the trading platform
  7. Be true and committed to trading as a professional, have a business plan and follow it
  8. Master patience
  9. Know yourself - know how your brain works, again journaling is key
  10. Be mentally disciplined - plan your trade and trade your plan
  11. Invest in your health, your mind and body are the foundation of your business
  12. Remain steadfast
  13. Find a coach, a trading mentor, or training class to sharpen your skills

The trials you encounter will introduce you to your strengths, remain steadfast and one day you will trade worthy of your potential.

My next class begins on September 15th, 2008. If you are interested in attending my class at my office, or through online live class, please feel free to contact me. My desire is to train up traders who can live a live of prosperity, peace, and freedom.
Douglas Goeckel


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