Chapter 5
Conclusion:
you will know soon alot of things like Below so follow me to know it.
“I have seen the enemy and it is me”
I've been around and around in my trading career. I started off simply
following trends in stocks with sound money management rules. Guess what?
I made money.
Then I embarked on a quest to find the Holy Grail of trading. I attended
literally dozens of seminars. Sadly I have bought many $3,000+ black boxes
trading systems. Purchased hundreds of trading books, reports, files, tapes,
CD's. You name it I probably have it.
JUNK! 99.5% of what I have read, seen, heard or tried simply does not
make money in the stock/futures market. It's all smoke and mirrors to simply
disguise the fact you have been ripped off.
What I have learned:
* No MAN ALIVE, or system on earth can ever, or will ever be able to
predict the future market behavior. If someone tells you they can RUN
AWAY!
* Simplicity is the key. Complicated technical systems are trying to baffle you
into parting with your $$$'s. B*S baffles brains.
* Systems have three main components: 1) trade entry/exit rules. 2) Money
management 3) Trader psychology
95% of traders will put them in the order I wrote above (i.e. in order of
importance.)
I realize now the order of importance is:
1) Trader psychology. If you do not have the correct mindset you are
doomed to failure. Most traders I come across are seeking a get rich quick
scheme. Or wish to make money in the markets with no effort. Then they
wonder why their account is sinking faster than the Titanic. They jump
into the markets with little or no stock market/trading education but expect
to compete with the big boys. Get this. If you enter the stock market with
no education then you are treating it as a gamble. If you gain an education,
test, and adopt a more professional stance, then you are treating it as a
business. Who makes money? Gamblers or business people? It is no
different in the stock market.
2) Money management rules. I could trade solely on money management
rules and come out ahead. I spend most of my time in this area now. It's
that important. I have adopted a much more business like approach to my
trading. The results and MY LIFE have improved dramatically.
3) Trade system: I have my simple systems now. They may need a little
tweaking from time to time but I will not spend any more time seeking out the
Holy Grail trading system. (if you find it... don't tell me about it)
* Trading Really Is a Great Business:
But only when you remove the stress. I've been there when I was hanging
onto every twist and turn of the market. Trading from emotion. Getting
excited about winners and down about losses. Looking back it was not a good
phase of my life. The stress levels were far too high. I gave up hobbies,
friends, social life. I was forever anxious about what might happen to my
positions. Had I have carried on this way I would have been dead or on the
trading scrap heap.
But adopting a more business like approach to trading. Taking time to relax
and plan my trades. Developing the correct mental posture in order to win.
Using sound money management techniques then it actually does become
enjoyable.
You can make your trading career as big as or as small as you wish. Want to
simply manage your own retirement capital? Then trade in the evenings. Or
trade weekly charts and manage your trading account on a Sunday evening.
Want to trade full time? Great. Make sure you have sufficient knowledge capital and experience to do this. Why not?
Want to create a trading empire? It can be done. Get a solid track record, get
some business plans drawn up then go for it.
some business plans drawn up then go for it.
It can be as big or as small a venture as you are willing to take it.
Good luck and keep learning the stock market business.
Sincerely
Mark Crisp
© 2002 by Mark Crisp
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