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I recently bought a book written in the early 90's called "Elements of
Successful Trading" by Robert Rotella. Basically, its a "traders bible" as
it is ~700 pages long and covers every aspect of active trading. Anyway, I
think I learned more from reading the first chapter (6 pages) than I have
from anywhere else.
In the first chapter, the author says that in order to be a successful
trader, you need to focus on three aspects of trading, and if you are weak
in one of these, you'll probably fail. The three aspects are:
1. Trading method (aka: analysis... either technical, fundamental or both)
2. Money Management (evaluating risk and reward so that you know when to get
out if a trade goes bad)
3. Psychology
Many traders fail because they focus mostly on analysis and ignore the
latter two. For some reason, most people think that analysis will take care
of everything. This is not the case, because it often can't answer the
questions of what to do if the analysis fails (as it will inevitably do) or
how much the trader trusts the analysis.
-----Original Message-----
From: hcarvas [mailto:hcarvas@xxxxxxx]
Sent: Saturday, December 20, 2003 10:39 PM
To: omega-list@xxxxxxxxxx
Subject: Path To Trading Success
I was struggling to learn how to trade. Like many
developing traders, I was constantly searching for a great
trading system that would make me successful. I was
searching for a great trader who would tell me the secret of
success. I spent many thousands of dollars on different
trading systems. I found a very good system, but I did not
have the right frame of mind to follow it. I spent thousands
of dollars on a teacher who said that he had the magic
potion for me and that I needed nothing else. But the magic
potion turns out to be another system, and it did not help
me.
One day, I came to truly realize that what I needed most to
work on myself -- my thinking -- my issues -- my psychology.
That was my turning point. That is the path to trading
mastery. And that is the secret to trading success - a
secret that almost everyone has read about, but it means
nothing until one's heart knows it and applies it. Many
will read this message, but only a few -- who need it --
will apply.
Disclaimer: This path has a risk of losing one's old
thinking and may not be suitable for everyone. It takes
commitment, time and effort to go through. It also has a
potential strong side effect on your personal life over the
long term.
hc
PS: If you live in the Southeastern part of Phoenix
metropolitan, are committed to trading mastery, and are
looking for a local trading buddy to share ideas and help
each others on the path, you can send me a personal message.
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