Keep Your Portfolio Safe by Azeez Mustapha
Unleash The Victor
We often find ourselves making the same mistakes over and
over. Coming to terms with the reality of trading can help
you break those bad habits. Find out how.
Most traders do not take risk control and money management
seriously, which is why many are unable to enjoy
long-term survival. Logical reasoning tends to give
way to inordinate emotions, but emotions are merely
biological events like a cough or a sneeze with no meaning
and are the opposite of thinking. Most market speculators
like to think that the secret to trading success lies in trading
strategies that allow them to enter at the right price, giving
no thought to risk-control measures or discipline. Knowing
how to limit losses, how to survive protracted losing streaks,
how not to lose courage in the face of losing trades, how to
control the emotions of avarice and dread, how to come to
terms with reality in trading, and how to keep on being hopeful by encouraging yourself and other market speculators will go
a long way in helping you to evolve as a market wizard.
Coming to terms with reality
Information is vital in conditioning the mindset of a market
speculator. In order to win constantly, you would need to do
what most others would not want to do. There is also a need
to learn what it takes to be a permanently successful trader.
Each individual or group that speculates or trades employs a
method that enables them to know when to buy or sell. Some
combine two or three trading methods on one account. Some
use fully-capacitated robots, whereas others use rule-based
systems. A trader who follows long and short recommendations
from a signal provider is also using a strategy.
Trading, however, is no picnic. Every good strategy has
good and bad periods. Those who are aware of this tend to
look for a strategy that has long withstood the uncertainties of
the markets. Many people prefer a foolproof trading system
that triumphs in all types of financial markets and survives all market conditions. Novel methods
of approaching the markets are getting
discovered all the time; time horizons are
being tailored to allow high-frequency
trading; and programs are being written to
create more robust and highly complicated
Charles Kirk of The Kirk Report (www.
kirkreport.com) began trading with a
$2,000 deposit in 1993 and now trades with
a $3 million portfolio. Since 1999, he has
been a self-employed, full-time, independent
trader. If he were not able to keep his
account safe when it was $2,000, he would
not be able to keep it safe when itís $3 million. According to
Kirk, the best traders will be wrong 40% of the time.
There are two ways of becoming a consistent victor on the
battlefield of the financial markets. One is to assimilate the
market dynamics, and the other is to keep your emotions in
check. Both are a daunting undertaking, but there has to be a
way of conquering both.