The main causes of failures in Trading

Jim Harison, a professional trader and a business - Consulting the public and private companies.

«Failure - this is the case, and not man».

Zig Ziglar

In life, we all ultimately responsible for their own actions. Markets in this sense, are no different. We are responsible for their own successes and failures and the extent of its success. The gain for a career in the trade did not play any role. In order to guarantee profits in the future, we need to be fairly active. Prevention of failure is an important part of this process.

If you repeat yourself:

«I am not ready to trade».

«I'm not disciplined enough».

«I hate to look at a computer all day and do nothing».

«I see a bargain, and I just can not press the trigger».

«I can not believe that I came out of the deal so early».

«I can not believe that I still hold the losing position».

«I have a presentiment».

«It looks as if I have struggled just to come to nothing come».

«I can not take another loss».

Or any other negative thoughts you attend, you are on the way down, which leads to failure.

As a successful business - a consultant and trader for many years, I have found several recurring characteristics and traits of people who think that they will succeed, but later refused their attempts.
How many of these actions or beliefs applicable to you?

What do you think what I say about this?

1. You do not believe in himself. If you think that you may not do so, then how can you build confidence to cope with the tempered traders?
2. You do not trust their abilities. If you do not have proper education, then how can you honestly think that will be able to compete on the world's largest , which is controlled by the two most powerful emotions: fear and greed. Lack of belief is manifested in many ways in this business (for example, early entrances or exits).
3. You are not in a position to consider the trade as a business. If you do not start thinking about this as a business and fill out their weaknesses education, how you can reach any level of success? You may smile random luck, but it will end and what then?
4. You are not in a position to plan. Waiver of Set and achieve short-, medium - and long-term goals is a recipe for failure.
5. You are just lazy. Your self-motivation and continuing education is a vital foundation of your business. You should strive to learn all the time, regardless of previous experience or level of existing knowledge.
6. You are not able to provide your business properly equipped. You must have the appropriate tools. Do you think that the doctor performed a surgery using a rod instead of a scalpel?
7. You can not understand how to take the loss. Markets do not know you. You do not suschestvuete in any other way but to the opposite side of the transaction. They do not care that this is your last dollar and your kids will not have shoes, etc. We are looking for losers to make money in this game with zero sum, but to open a position with an acceptable ratio of return to risk and be wrong than be losers.
8. You will not be able to manage their emotions. Regardless of whether you win or lose, you should strive to remain at a comfortable emotional state at the time of trade. A proper trading plan in this regard, it is extremely useful.
9. You can not study and carry out the basic principles of trade. Read books, listen to CDs, attend seminars and practice your new knowledge. All that you want to know about trade, it was already written, or commented on the successful traders. Try to learn something new every day.
10. You can not cope with the changes. There are three paradigms that you should follow: the patience, discipline and money management. Markets are changing every day, and it is these three skill allows us to be firm and flexible at the same time to take a consistent profit.
11. You can not follow the rules. Losing traders often think that the trade rules established for others. Do you think that they are not for you? Think again. Disregard the rules and you'll have a very short career as a trader.
12. You are too greedy. Reflections on the trading profits, instead of how you can better carry out his plan is a clear sign of greed.
13. You can not do what you know. A lot of people know what to do, and yet very few are able to do what they know. To do this, and there are trading rules that force to take action.
14. You can not believe that hard work brings good luck. Some people think that good traders are just lucky. Quite the contrary. They are diligent, seeking knowledge, people who understand the paradigms with which they must operate. Supervision closely to the traders that you are successful, and you'll find years of education and hard work that brought this . You can be the same .
15. You blame others, when the full responsibility for something is for you. Acceptance of responsibility is a reference point in order to succeed in anything, especially in trade. The degree of responsibility is the criterion. Follow-up is a reward, not money. Money - it is a by-product of the plan. It accuses the broker in a bad performance, when you hesitated. This is just one example, but we all know a lot of others.
16. Do you need continuity. Be prepared to close the position on a specific price or time and just accept it without a struggle. Be also prepared to re-enter in the same location, if the graphical model and the price action tell you that it is prudent. Or completely change your position, if required by the market. If your plan is due, you can be successful over time, but only if you are still in business.
17. You will not be able to follow the first rule study. The first rule study - recurrence. Record it and repeat several times a day. Learn it. Follow your plan.
18. You are not able to establish and maintain a positive attitude. This is obvious.
18 1 / 2. Yes, that's right, it is 18? cause failures: MRND (much talk and no action). Many traders are not honest with themselves about the actual results of their trade, therefore, impossible to build a level of confidence in itself, required to act in an appropriate manner, when the appropriate situation. For example, they open position and then change your stop-order, or, even worse, they do not place a stop order. This pernicious cycle that is difficult to break. However, if you're honest with yourself, you have already made a step towards improvement.

The setback is five degrees. What degree describes you?

• Failure to achieve the best result;
• Failure to learn;
• Failure to accept responsibility;
• Failure in the implementation of the plan or, worse, failure to plan;
• Failure to have a positive attitude.

I did not want to dwell on the negatives, though, this article certainly explains a lot of negatives, but I feel that this is the best way to convey my message to every trader. If you are weak in any of these 18? paragraphs, try as soon as possible to change this.

Each of these weaknesses is like a cancer - the reason comes from itself due to bad habits and neglect, which is easy to detect and difficult to cure, but not impossible. Requires external assistance and proper treatment, to support your «health» as a trader.

Jim Harison
www.screamingquote.com