Learn From The Legendary Traders!

What distinguishes the best traders in the world of the average investor?

Can the average investor to examine the success stories of the legendary traders and they use the system?

What is common in the actions of the most famous traders, which may take the average talented trader?

Before we will provide answers to these questions, let us look at some of the most successful legendary traders:

- Nicolas Darvas made $ 36,000 to $ 2,000,000 over 18 months!
- Ed Seikota of $ 5,000 was $ 15,000,000 after 12 years!
- Jesse Livermore made a multi-state in early 1900
- Richard Dennis made 100 to $ 200 million
- George Soros is believed to be one of the greatest traders of all time!

The result is very impressive and to this list could easily add some other prominent traders. So why do they have such good results?

There are several common factors that are observed in the majority of successful traders:

- They have a system in which they are strictly followed.
- Most of them has a style of trading following the trend.
- Most of them are medium-and long-term approach.
- They are not subject to either fear or greed.
- They have the absolute discipline and a 100% follow their system.
- Their trading plan in full, they are ready for all scenarios in advance.
- They know that the system passes through the bad times and good times. They reduce the losses as soon as possible and give the profits to grow.
- Their system matches their personality.

Some of these points sound logical and likely, many will agree with them. But in reality, the average investor behaves perfectly in another way. Some of them burned a finger "for the past three years, and some even lost their status. Here are some examples of observable behaviors:

- On time is not reduced by the loss.
- Short-term investments perederzhivayutsya in the hope of a recovery in prices.
- People listen to the advice of his investment brokers and analysts.
- People are investing in hot stocks recommended by your friends friends.
- People do not have any plan for their investments.
- Management of capital is not in any way contemplated.
- People using the styles of trade, which do not correspond to their identity.
- They are filled with greed and fear.

What can the average investor is able to draw from the above, and how to avoid these mistakes? Here are some useful points that can be gleaned from some of the most successful traders:

- Each investor has its own personality. Some investors have a very aggressive trade and trade often. Some preferred shares, as other have more risk and investing in options. Others want to spend a minimum of effort.
Investors should understand your own profile and choose a style that matches his personality.

- Trade should be fully planned in advance. People planning to many of their actions, such as travel on vacation, moving, etc. But whether they have a plan where to invest?
The investor must have a system that will help him be prepared for all scenarios of trade. There is a need to know in advance where to buy, how much to buy, where to go. As a trade, the price instrument (share, option, currency, etc.) may not be influenced by the normal private investor.

- The most important component of the Trading System is the management of capital? Surprised? Many investors and traders spend most of their time developing a very complex system of the entrance to the trade. But the entry strategy contributes only about 15% in the success of the trade system, based on academic studies.
The most important issue of Trading Systems - this is how much to invest and how many positions to keep any one time.

- For a successful trade relationship is required, you can do. " 99% of the world's population may have a dream, to be materially independent, but only 5% achieved this. Why? Because with phrases like "... it would be nice, but I can not ..." or "... perhaps one day I win the lottery, but so far I have to work hard ... they have already lost.

Tom Meier
www.selfgrowth.com