Great traders started with only a small capital but ended up making millions or in some cases billions. Take the case of Bruce Kovner. He was a NYC Taxi Cab driver in 1977 when he started trading forex and futures by borrowing $3,000 on his credit card. How much did he make? A whooping $11 Billion. This is true. He had no money but he learned the art of consistently compounding the trading account and ended up making a fortune. He lives in New York. Why most fail and Bruce Kovner succeeds? Many don't even make a few winning trades in a row.
Trading is in fact a mind game. Trading is all in your mind. Many traders don't realize it. Consistent winners think differently from anyone else. Whether you trade stocks, forex, options, commodities, futures, bonds, ETFs or any other security, you need trading discipline in your trading decisions.
Richard Dennis was a great commodity trader. He had started with only $400 and over a period of a decade or more made more than $200M in the commodity market. How did he do that? Simple, trading discipline.
He would tell his famous turtles that he could give away the trading rules that had made him rich to anyone. He could even publish them in the newspaper. But that won't make anyone rich as long as they didn't have the trading discipline to follow those rules consistently no matter how bad the market.
When you trade, your worst enemy lies within you. Yeah, your emotions are your worst enemy in trading. We all have fear and greed lurking within us. As long as we are not able to master this fear and greed within us we cannot become a winning trader.
What is fear? The fear of losing your money in the market. You want to make money but at the same time you don't want to lose. Losing is always painful. So this fear is going to stop you from entering into a trade when the trading signal is telling you that it is the time to get in.
You will wait for more confirmation and in the end lose your chance of making a winning trade. In the same way, suppose you made two or more winning trades in a row. You are flush with confidence. You know you can make winning trades.
You become greedy. You throw caution to the wind. You enter the market, you want a bigger pie of the profit the market will give you this time. When you need to get out, you are hesitant. You want more. The market turns against you on this. You lose!
So most of your trading problems will be self created. Traders fight the markets alone. Winning and losing is all in your mind. Control your emotions and you can become a great trader!
Mr. Ahmad Hassam has done Masters from Harvard. Download these 3 great FREE Trading Discipline audios by Norman Hallet! Learn this powerful Fibonacci Retracement method FREE that makes money anytime instantly;
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