Why is trading attractive? What is trading? And how does one go about trading?
Why trade?
Fulfillment, freedom, happiness, and profit.
Trading is hard but rewarding.
Demanding but attractive.
Fulfilling but heartbreaking.
Trading successfully can yield unlimited monetary potential and the freedom and satisfaction that come along. Done improperly, it can be ruinous, maddening, and demoralizing.
Ask almost any successful trader “why?” and the answer will almost never be about money first. Traders never stop learning and growing. And that can provide happiness and satisfaction like almost no other profession can.
What is a trade?
Derrick Oldensmith — @ProDeskVTF, Senior Trader at T3 Trading LLC (where I am a professional trader) defines a trade as something with
a technical reason and a technical out.
A technical reason can also be called a setup. And a setup can be as simple as a chart pattern. A technical out can be an instance of price action that negates or disproves the setup, or a price target which signals the potential end of the move.
How to trade?
Developing a profitable trading system takes knowledge and experience. Following a system properly takes discipline, persistence, and emotional fortitude. Richard Dennis, one of the most successful traders of all time, is quoted saying,
“…. you could publish trading rules in the newspaper and no one would follow them. The key is consistency and discipline. Almost anybody can make up a list of rules that are 80 percent as good as what we taught people. What they couldn’t do is give them the confidence to stick to those rules even when things are going bad.”
Design and follow your own profitable trading system and you’ll be well on your way to happiness, fulfillment, and financial freedom.
This post was created with Typeshare