Wednesday, May 15, 2013

Listen to no one

One important thing about trading, is that everyone has his own perspective on whats happening. The market is colored by people's perception, and no one knows the complete picture, and making money in this situation is definitely not easy. The WORST thing you can do, is to try and mimic someone else's trade. Everyone trades different, so if you're copying someone, who has a different time frame, different account size, different risk parameters than you do, you're a FOOL.

Remember this lesson - Listen to no one, no one is an "expert". Learn how to trade, come up with a list of setups, and stick to them and in the long run you will make money. If you get greedy, try to swing for the fence, ignore risk parameters, then you will LOSE. You will lose in the long run, even if you made money on the trade.  This is because the key principle to make money is to understand yourself, the markets you trade, the setups, and manage risk. By listening to another, you're ignoring and over-riding ALL of these. Never ever do that.

Peace out. 

No comments:

Post a Comment