Tuesday, November 22, 2011

Successful vs Unsuccessful Traders

By Timmy Morre

There are small differences between successful traders who make a lot of money trading stocks and unsuccessful traders who study the market and put the effort in, but can't seem to make consistent profits.

Successful traders make their own decisions on how they want to approach the stock market and what qualifies as a good buy. This allows them to try out different strategies and work out a strategy that fits them best.

Traders who are unsuccessful on the other hand will look for hot stock tips that they hope will just take off and make them a lot of money. Unfortunately it is not that easy. Getting rich quick is more of a fantasy then a reality.

Traders who are successful will build their own systems and learn from their past failures. Because they are relying on themselves and constantly learning they are always moving forward and improving.

Unsuccessful traders search the net for winning systems and switch strategies whenever they hit a rough patch. This stops them from learning anything new because they are constantly looking for the "holy grail" of trading systems that is never wrong. That system just doesn't exist.

Successful traders will look for ways that they can control their emotions so that they do not start to panic when bad things happen or start to get greedy when good things happen. Emotions can interfere with logic and cause you to lose a lot of money.

Traders who are unsuccessful follow their basic emotions and do not listen to logic. They panic when they start to lose money wanting to sell and they get greedy when they make money wanting to hold onto the stock forever. This eventually causes them to lose money.

Traders who are successful are active learners. They study the market and improve any flaws that they or their system has. By doing so they are always improving and moving forward.

Those who are not successful do not want to work at becoming successful. Instead of working to become rich they just want to be rich already. Anytime you want to get rich quick you are almost always going to find scams that will defer you from your true goals in life.

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