When trade goes well you feel perfectly. When trade goes not the way it is necessary, it can be similar to a nightmare. The whole conditions are made within weeks and lost for few minutes. These examples repeat each time as soon as the new generation of traders comes on the market. It is obvious that for the trader if he wants to become successful, better to study this experience and not to repeat another’s errors. It can be reached, asking correct questions and finding the right answers by rational supervision and the logic conclusions.

In the given series of articles one question will be considered: “what distinguishes the successful from losing trader?”

Further it is offered supervision and the conclusions made by the author and used by him in its own trade. Perhaps, these ideas will be useful also to you.

SUPERVISION 1

The great number of losing traders trade on short-term and intra-day trade. It is connected with the time period, many of them lack appropriate preparation and a trade well thought-out plan not so much. Trading during strong movements of the market, they are most vulnerable for “market noise” and have also higher total costs at trade (the spread, communication etc.) At them also is often observed an equity lack. Successful traders often trade long or medium term positions. Often they have greater capital.

Conclusion:

Trade on long or medium term positions, from the point of view of statistics, assumes a success high probability. The same can tell and about original capital level. The more initial assets, the probability of a survival there is more.

SUPERVISION 2

Losing traders often use systems and methodology that are difficult. Successful traders use very simple techniques.

Conclusion:

It, apparently, disperses from erroneous belief that the more difficult is better. It is not that case. It would be logically possible to assert that the simplified market-based approaches tend to be more practical and less inclined to false interpretation. To tell the truth, even the term “simple” or “difficult” have no sense. Also it is possible to conclude that for the successful trader is more important to do the analysis most part independently.

SUPERVISION 3

Losing traders often strongly rely on automatically-counted systems and indicators. They don’t waste time on studying of mathematical algorithms of these tools and don’t consider distinct from the most popular interpretations. Successful traders often exploit computers because of their speed of handling of a considerable quantity of the data. However, they also study mathematical formulas of used indicators and spend the time to understand a market mechanism to “the last trifle”.

Conclusion:

If you want to be successful in something you should have good understanding of used tools.

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