Your Sure Way To Lasting Pre-Eminence In Trading

Why is it that some people are successful in trading the markets? And why is it some people fail? Is it luck that determines if you are successful or not in making money from the market? Is it the system or strategy that a person use which determines their success?

A lot would say that it’s the system or methodology that they employ which finally decides whether they come out winning from the market.

Each system that exists on the web will show you how to make a little cash using it. Without question, it’ll make money for you. The issue is sometimes how much money will the system make for you. All of the system that out there will show to you how their system has work base on historic information or activity and then at the base of the page there would be a disclaimer clause that states ‘..Historic information doesn’t identify or guarantee future earnings….’

So why is it that these sites or page include this disclaimer clause?

The disclaimer clause is incorporated in it because they know that there are certain elements which they can not control. Human emotions.Human emotions are always the key to either success or failure in any business. And it is no difference when trading the markets. Read all the books about trading that you want, buy all the successful system that you want. If you can’t control your emotions, you can’t succeed in the markets.

That is the explanation for the disclaimers clause as the one thing the author can not control is their customers or buyers feelings. In the market there are but just two main feelings that each trader will experience ; greediness and terror.

When this emotion appears it isn’t how we eliminate it but rather how we take action on it. There are natural feelings that can’t be eliminated. This feelings forces us to action, therefore how we take action on it will identify the end result. Like fury, when we are indignant at somebody, it’s either we are saying something unpleasant or we will be able to just kick a bucket or we are able to just dive into a pool of water. Which ever action that we take, it creates a different end result or result. All too frequently when we start to see 2 – 3 successive loses on our trading activities, we’d start to have doubt. When this occurs we are at the state of fear, we fear losing more of our cash and so start to doubt the system is working. While no system is unconditional, meaning no system will make sure that you’ll make cash all of the time. The system seller would say that we’d be well placed to earn money constantly, provided we follow their system to the dot.

From another viewpoint, when we start to see 2 or 3 uninterrupted we start to feel on top of the Earth. We start to feel that we will begin making decent money from the market and then start changing the system or perhaps putting additional money in the market to leverage our takings or perhaps start to take on more positions, which eventually make us vary from the system which we were using. This is when greediness has already stepped in to reign our thoughts. There’s asserting ‘The system is only as much use as the individual using it’.

So if we don’t follow the system either with we are making loses or when we are creating profits. We would ultimately fail. And to follow the system requires discipline. The discipline to act on our fear and greed when it sets in, will determine how well we do in the market. Once again discipline is the key. We must have the discipline to say ‘I have reached my target. I should take profits now even though it may go higher’ when greed sets in. And when fear sets in one should say ‘I have to take a position even though the market does not seem to be moving in my favor’ While these are but two circumstances when greed and fears arises, there are, and will be many instances when we need to make a decision to either enter or exit the market. And these are very two most important decisions to take in order to succeed in the markets. The discipline to follow the system diligently no matter what happens to the market.

So no matter how good the system is, the only and sure way is to lasting success in the market depend on the discipline to overcome our personal emotional to follow a particular system religiously.

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