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Some questions? and see what the real answers r.
date 09/14/07 time 5:22pm
Hi all,
since its the week end now and we r away from the line of fire here are some questions i asked myself before i started trading and here r what my answers were.
Q Whay do so many traders who join the market lose everything eventually?
A i thought that that biggest problem with most of the traders who join the market is that they think themselves to be bigger then the markets. They dont tend to fear the market place, and they lose sightof their discipline and hardwork ethic. Yet we all seem to be working very hard to achieve our goals of being profitable, then there is something amiss here in us not the market. This is the most important lesson of this answer. what it is is for each one of us to identify. It could be discipline or lack or hardwork, or both.
Always respect the market. Never take anything for granted. Do your homework. Recap the day. Figure out what u did right and what u did wrong. That is one part of homework, the other part is projective. What do i want to happen tomorrow?. What happens if the opposite happens?. What happens if nothing happens?. Think through all the what ifs. Anticipate and plan, rather then react.
Q What are the characteristics of a losing trader?
A The composite profile of a losing trader would be someone who is highly stressed and has little protection from stres, has a negative outlook on life and expects the worst, has a lot of conflict in his/her personality, and blames others when things go wrong. Such a person would not have a set of rules to guide their behaviourand would more likely be a crowd follower. In addition, losing traders tend to be disorganised and impatient.They want action now. Most losing traders are not as bad as the composite profile would suggest. They just have part of the losing profile.
Q What is the biggest misconception the public has about the markets?
A The idea that the market has to go up for them to make money. You can make money in any kind of market if u ahve the right strategies. With futures , options and the underlying markets, there are enough tools available to set up a game plan for any situation.
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