Trading Coach Advice – The Most Valuable Lesson Learnt
Posted on 27. May, 2010 by Global in Uncategorized
How can a coach help you? A coach generally has experience and you are looking to learn from their experience. You are hoping to avoid making the same mistakes as they did. Although it could appear expensive, in the long term, it’ll actually save you time and money. There are many good reasons to get a coach for anything new that you try. It applies especially to trading.
Coaching is especially useful for all those starting out in trading as the stakes are high. Unlike when you learn a new sport or hobby, if you make a mistake or error in trading, it will cost you money, sometimes a lot of money. If you are trading, and trading with real money, mistakes will cost you financially. To avoid the pain of losing your hard earned cash, a coach can guide you to the well worn paths and teach you how to maximize profits and minimize losses. Given that trading coaches are generally professional traders that have been around long enough to be successful themselves and are able to teach others, I was interested to learn from them, what the most important lesson they have learnt on their trading journey.
One of the best lessons to learn is that trading should be objective and not subjective. Do not listen to other peoples opinions. Once you get into a trade, you should not tell others about your trades, as you are following your own trading system. Once you start to listen and be influenced by others you’ll lose confidence. Follow an objective methodology and stick to it until the results prove to yourself that you need to change it. You need to learn to trust yourself and to trust the system that you are following.
A lesson that many people fail to learn until it has cost them dearly is not to get distracted and purchase the latest and greatest trading systems that are marketed to you. These come in the form of trading robots or trading systems or trading e books. It sure is tempting when you look at the fantastic profits that are promised in the advertising. Once on a mail list, you will regularly get many offers for ways to make money from the market. You need to limit yourself to one system that you trust. Learn to forget about even reading those emails and websites that promise untold riches.
Full time traders have learnt to treat trading as a business. To find success in trading, you must think of it as a business. Trading is actually closer to running a conventional business than investing. Many people do not know the difference between trading and investing. Trading is about following a system consistently and making a profit by having the amount you have win greater than the amount you have lost. Professional traders have learnt that not every trade is going to be a winner and they do not expect that. You know what to expect in terms of winning percentage as you have researched the system. The trading system you are following if it is profitable will have a slight edge to allow you to make money.
Success comes from following a trading plan. A plan is vital as it will tell you when to trade, how much to put on the line, when to increase the trade size and when to exit. A trading plan will give you all of the instructions so that in the heat of the moment, you only have to stick to your plan. Successful traders following their trading plan consistently and have strict risk management and money management rules.
For more information about a trading coach go to www.tradingcoachdirectory.com
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