Why Trade? What is the Successful Trading Characteristics ?

Why Trade? What is the Successful Trading Characteristics ?


First : Why Trade?

Improving their potential profit from stock transactions is obviously the keyreason why most people decide to trade. People who want to grow their
portfolios rather than merely maintain them hope that the way they invest

does better than the market averages. Regardless of whether traders invest
through mutual funds or stocks, they hope the portfolio of securities they
select gives them superior returns — and they’re willing to work at it.
People who decide to trade make a conscious decision to take a more active
role in increasing their profit potential. Rather than just riding the market up
and down, they search for opportunities to find the best times and places to
be in the market based on economic conditions and market cycles.
Traders who successfully watched the technical signals before the stock crash
of 2000 either shorted stocks or moved into cash positions before stocks
tumbled and then carefully jumped back in as they saw opportunities for
profits. Some position traders simply stayed on the sidelines, waiting for the
right time to jump back in. Even though they were waiting, they also carefully
researched their opportunities, selected stocks for their watch lists, and then
let technical signals from the charts they kept tell them when to get in or out
of a position.

Secend : What is the Successful Trading Characteristics ?

To succeed at trading, you have to be hard on yourself and, more than likely,
work against your natural tendencies, fighting the urge to prove yourself
right and accepting the fact that you’re going to make mistakes. As a trader,
you must develop separate strategies for when you want to make a trade
to enter a position and for when you want to make a trade and exit that
position, all the while not allowing emotional considerations to affect the
decisions you make on the basis of the successful trading strategy you’ve
designed.


You want to manage your money, but in doing so you don’t have to prove
whether your particular buying or selling decision was right or wrong. Setting
up stop-loss points for every position you establish and adhering to them is
the right course of action, even though you may later have to admit that you
were wrong. Your portfolio will survive, and you can always reenter a position
whenever trends indicate the time is right again.

You need to make stock trends your master, ignoring any emotional ties
that you have to any stocks. Although you may indeed miss the lowest entry
price or the highest exit price, you nevertheless will be able to sleep at night,
knowing that your money is safe and your trading business is alive and well.
Traders find out how to ride a trend and when to get off the train before it
jumps the tracks and heads toward monetary disaster. Enjoy the ride, but
know which stop you’re getting off at so you don’t turn profits into losses.