Traders make money by betting on short-term price swings. The idea
is to buy when our reading of the market tells us prices are rising and
sell when the uptrend runs out of steam. Alternatively, we can bet on
a decline and sell short when our analysis points to a downtrend, covering
when the downtrend starts bottoming out. The concept is simple,
but implementing it is difficult.
It is hard to become a good analyst, but harder to become a good trader.
Beginners often assume they can make money because they’re smart,
computer-literate and have a record of success in business. You can get a
fast computer and even buy a backtested system from a vendor, but putting
money on it is like trying to sit on a three-legged stool with two legs
missing. The two other factors are psychology and money management.
Balancing your mind is just as important as analyzing markets. Your
personality influences your perceptions, making it a key aspect of your
success or failure. Managing money in your trading account is essential
for surviving the inevitable drawdowns and prospering in the long run.
Psychology, market analysis, and money management—you have to master
all three to become a success.
COURTESY:- come into my trading room
