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Showing posts from January, 2010

3 Important Factors to Successful Day Trading

To become a successful trader in the stock market, you must possess what I call the 3 ‘M’s. Mind - A disciplined mind is an absolute requirement for successful trading. Managed to conquer the devils of greed and fear is going to enable you to become a successful trader. Learn to manage your emotions. Don’t ignore change in mass psychology. Trade less often. Trading is deceptively easy. Goal is to trade well and not to make money! If you trade well, you will make money. Method - There must be a plan or methodology to trading not based on tips, hunches, visions or dreams. You must develop a personalised trading plan. Without a trading plan, you are setting yourself up for failure. It is not only important to have a trading plan but most importantly, you have to be disciplined and stick to your trading plan! Money Management - This is possibly the most important factor in trading. The first goal of money management is survival. You need to avoid risk that can put you out of business. T