Success in trading starts with seven things (by Peter Brandt):
1. Human personality and character traits consistent with assuming risk
2. Proper capitalization
3. A correct perspective of market speculation
4. A comprehensive understanding of risk control protocols and statistical probability theory -using protective stop orders must properly flow out of a correct understanding of probability theory. Using protective stops is not the same thing as sophisticated risk management. Risk management is far more complicated than the vast majority of novice and aspiring traders comprehend
5. A keen understanding of human frailty as the biggest hurdle to profitable market operations - traders need tools for recognizing and managing human emotions
6. The development of a comprehensive trading plan, addressing all possible contingencies. A trading plan must reflect the unique personality of the trader.
7. The patience and discipline to correctly execute the guidelines and rules dictated by the trading plan.
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