A: This is really a relative question because it depends on the individual and each one of us learns differently, however invariably learning to trade will require substantial time, solid commitment and focus. Learning to trade also depends on a number of variables some of which are outside our control. We can do our best to control the variables we control and this helps to create success (well, that coupled with that little bit of good fortune!) . Success is, however, not just about making good choices but also about avoiding the bad choices and when opportunity presents alternatives, make no mistake the choice you make will help decide the final outcome. Some traders will call this luck but no matter what they call it, the outcome is determined from the decisions you make. The question, is, are you able to make good choice when the variables you don't have control upon present you with opportunities? I believe that one has mastered trading when he's able to make good profits on a consistent basis and the number of good choices outnumber the number of bad choices.
A: Good traders are emotionally balanced and make good decisions in their head (psychology). They enter a trade, take their profit or cut their losses and move onto the next trade. Successful traders are thus disciplined and able to take decisive action immediately when required. They consider trading as a business and their choices are based on facts and knowledge and backed by experience.
From what I gather, if I were to put day trading in a nutshell it would be something like this -:
Thus, to be successful you have to set yourself strict targets and STICK TO THEM. If a trade isn't going the way you want it to, then get out. An experienced trader will expect and accept the outcome with equanimity. It has been said many times before that it is better to take a small loss and re-assess than just hang on and hope it will turn round and end up with a big loss later. Understand exactly what you want to get out of a particular share before you buy it.
A: In no particular order -:
A: I've come up with several possibilities: -:
A: People typically work all their life in a business or trade that they know inside and out. They know a competitor couldn't walk in and take over from them without knowledge and work and study and experience. But they still decide to put all their money into oil futures, because they're sure it will go up. They do not study the instrument and do not realize that this is work and that it takes considerable effort and study to be successful in this business. Not only do you have to understand the market workings and what the price is telling you but you have to take calculated risks. Otherwise it might be best to just put your money in a high interest bank account and forget about investing. Before you get into trading understand what's involved. Making money in the market requires a good deal of education, like any trade or business. If you've got the time, the drive, persistence and the right psychological makeup, you can enter that elite realm of the truly successful traders.
Finally, but not least you need to understand yourself. Each of us is different although we may share a number of similarities to others. We need to understand our knowledge and skill levels, our savvy and sixth sense, our self-discipline, our trading time horizon and availability, the size of our account size, your age (as this will determine how much risk you can take) and personal tolerance to risk, to name only a few variables, but crucial matters to consider. You need to match all of this with whatever your trading plan is.
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