7 Tips for Consistent Success for Beginners
Beginners and Advanced Traders alike all want to know how to make money in the stock market. But what they really need to learn is how to not lose money in the Stock Market from trading, that is the real secret to consistent success. Let’s talk about how you can learn not to lose money in the stock market. Many seminars will talk about trading as a zero sum game, and that is the first falsehood most traders learn.
Trading and investing is not a game. It is a serious business that must be treated exactly as you would any other small company you owned and ran. Your trading business needs to make consistent profits, exponentially growing profits over time.
Most seminars teach that it is okay to have a 40-50% success rate, which means that at least half of the trades are losing trades and about half are profitable. They claim that the few good trades will make up for the losses, however this is utter nonsense.
The reason that most seminars promote a 40-50% success as being okay, is because they are simply selling a software product. They are not worried about helping attendees succeed because they plan to sell more up-grades when attendees fail. Many trading systems are using computer generated signals, and the ratio of success for these programs is less than a 40% rate.
If a small store made profits on less than half of the merchandise they sold and lost money half the time, how long would they be in business? If a doctor was only accurate half the time with his diagnosis for his patients how long would his practice last? If a traffic controller was only able to land half of the planes safely, how long would he keep his job? If a bank only made money on half of its loans, and lost money the rest of the time how long would it keep its doors open?
Martha Stokes CMT
Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses
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