I wrote this last week and had a warm response from those that chose to reply. I though it would be a good idea to post here. Hope everyone likes it, and if not please share your distaste.

What makes a successful trader and trading system?

I have been inspired to speak from the heart today because every day I see a new advertised trading system being sold for $100 or more. Why do you think you have to use an automated system to be a success? Are you afraid to trade the markets? Do you want to blame someone else for your loses? It’s time to understand what YOU have to do to succeed in building wealth for you and yours. NO MORE LOSES!!!

First step…Education and Dreaming BIG!

Read everything. Visit every website. This process can take a year or longer; so what. Do it! There are plenty of resources on the web and in your local bookstore. In order to break through the blockade you must understand the history. This is true with any venture taken on the path to a fulfilling life. Some of us have spent 15+ years in our development from a young age to become who we are today. It’s time to take steps backwards to take giant leaps forward and remember our childhood; remember how we we’re educated and the experiences we had that contributed to who we are today. The critical analysis of who we are will give you a purpose behind your trading. It’s not about profits, it’s not about YOU! This is bigger than us and our small deposits are small peas in this big world! The real questions that should be asked are why we trade and what do we want out of it?
I would recommend demo trading as much as possible until you have not one, but many mental breakthroughs. We are all given a unique eye to see the world; to act or react in given situations. Newton’s law states that for every action there is a reaction. Be aware of the implications behind every trade until it becomes second nature and you will be successful. You don’t need to double or triple a demo account, just be consistent.

Step two…A strategy should be based on your risk appetite.

Opening your first account can be quite exciting and you’ll want to jump in and trade ASAP. Be patient! Your strategy should be based on your risk appetite, so make sure you have an exit before you make any entries. Here is a quote from Sun Tzu’s Art of War,

“The general who wins a battle makes many calculations in his temple ere the battle is fought. The general who loses a battle makes but few calculations beforehand. Thus do many calculations lead to victory and few calculations to defeat: how much more no calculation at all! It is by attention to this point that I can foresee who is likely to win or lose.â€‌

Ask yourself these questions:
1. Do I hold on to losing trades?
2. Do I add to losing positions?
3. Do I have sleepless nights?
4. Do I miss out because I over think entries or exits?
5. Do I let missed opportunities get me down?
If you answered yes to more than one of these then the only person to blame is yourself. You must improve on your thoughts and actions before you can develop an optimal trading strategy, go back to the drawing board. To appreciate and understand the positive and negative experiences could bring enlightenment to you and your strategy. When you can remove yourself and your emotions, you will see the market for the first timeJ.

Step three…Greed, Fear, & Ignorance

I don’t want to write too much on these. Albert Einstein summed it up pretty good when he said these 3 forces rule the world. I would recommend studying psychology. You will see how much it impacts markets moves.
In conclusion, I have seen successful automated systems and am not completely against them. There are just way too many that have been optimized to look attractive. I would recommend saving your money and investing in your own education before using an EA. This isn’t for everyone and it’s ok to walk away. You’ll be a better person through your experience.
Last quote from The Art of War,

“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.â€‌

I speak from experience and I have failed. I wish nobody to go through what I went through. Sometimes you have to crawl through sh** to come out smelling like roses.

Written by sleep1Iopen