Ugh, hello traders. Another year, another beat down coming from these darn markets. I can’t believe I’m still trying to trade and make money when everything and everyone is out there trying to take my hard-earned cash. Every time I think I’ve found the next great trading strategy that someone showed me – either on the internet chat forums or at a trading club I belong to, or in the two dozen trading books I picked up over the year, or the five trading magazines I subscribe to – the darn system doesn’t work. I mean, I’ve tried that moving average crossover technique four or five times; that was worthless. Then I tried that Fibonacci style; that didn’t work on those three trades. Ha! Then there was that overbought/oversold on the Moving Average Convergence/Divergence; that lost me money on all three trades as well. Wow, there were dozens of techniques I tried and none of them seemed to work on the few trades I tried them with. Could it be me? I must not be cut out for trading.
I know I can read basic supply and demand charts; those are pretty simple to understand, but my trading style isn’t working. I mean, I tried scalping (trading dozens of times a week); that lasted a whole five days. Then I tried intraday momentum trading (placing just a few trades a week); the market didn’t do anything that week so that didn’t work. Then I tried swing trading (holding on for a few days at a time); not bad, but look how much money I could have made if I was more active! Lastly, I tried long-term trading (holding on for weeks at a time, with only a couple trades a month); it was sooo boring – I couldn’t stand to wait around for the right setups! Plus, that month the market was kind of flat; I wouldn’t have made any money then anyway!
Maybe it’s the brokerage firms I’ve tried! Yeah, that’s it! I’ve heard that they run stop loss orders; that must be why I’m losing money! All I have to do is find the one honest firm out there and suddenly, it will be raining money on me! Now, which broker should I switch to this month? Now, I’ll have to do some more research; maybe one of the hundreds of websites out there will tell me who is honest. Darn, who owns this particular website? Can’t seem to figure out who pays the bills on here; wonder if it’s the brokerage firm who ranks at the top in all of their rankings? Ugh, who can I trust out there?
I wonder if I used more leverage I could make more money? That’s it! I’m being hindered by the conservative leverage my firm allows me! I know they offer 20 to 50 times my money; if I just trade larger position sizes, I could make up for those bad trades and then make some serious coin! Perhaps one of those overseas firms will let me trade with 400:1 leverage! That will really get my portfolio going!
Perhaps it is my computer! I’ve had this desktop for two years now; it must be a dinosaur! Or maybe I need that super fast internet speed my cousin has! You can’t trade with only 6 Mbps; maybe I need 20! Or 50! Now if I could just get all of these things straight, the market will give me my money back!
Whew, that was difficult to write. Shake it off! Let’s try that again.
Hello traders! I don’t know about you, but I am excited about trading in 2012! I am thrilled to get back to trading after a couple of weeks off over the holidays because I know exactly what I am looking for in the markets. I have four trading techniques that I use on my specific time frames that fit my lifestyle and time frame I prefer to be in the markets. When my specific parameters show up, I’ll take my trades without hesitation.
How on earth could I know what has worked for me in the past? I tried them and kept track of them. How many times? Each technique should be attempted at least 30 times to give you a statistically relevant sample – and I recommend trying anything new on paper or the demo account, then with small position size after you become good/profitable with that technique. Three tries isn’t enough! What should you keep track of? Read this article for a brief list:
Having a positive attitude in things that you do will lead to more positive outcomes. This is true in nearly everything in life, don’t you think? How many negative people do you know who attract negative outcomes, or always look on the gloomy side of things? Those people are fun to hang out with, aren’t they? By having a more positive outlook on trading and life in general, more positive things will come your way. As we often say at Online Trading Academy, trading is simple, just not easy. Have you ever seen a good golfer on the course play and shoot close to par, or even break it? Do you think he or she got that good by luck and being negative? Of course not! Hours of practice, and visualizing every shot the way they WANT the ball to go is how they play. This is the major difference between decent golfers and the great ones. Do you want to be a decent trader, or a great one? By having the discipline to keep track of the things you are good at and the patience to wait for those setups to happen will make trading simple for you!
I hope everyone out there has a great year of trading in 2012, and I hope to see you in class when I’m in the neighborhood!
Rick Wright – firstname.lastname@example.org