When it comes to new traders I find there are two schools of thought regarding trading strategies:<\/p>\n
(1.)\u00a0\u00a0<\/strong> Those that think if it isn\u2019t expensive it isn\u2019t worth learning.<\/p>\n (2.)\u00a0<\/strong> Those that think there is one \u201csecret formula\u201d which they haven’t yet discovered, will make them filthy rich overnight.<\/p>\n What these people don’t understand is trading is a conditioned response to price formations that a person has previously experienced in the past.<\/p>\n How fast you learn to trade is in direct proportion to how simple you want your rules to trigger a response.<\/p>\n No matter what you do you aren’t going to learn to trade in a day or a week, however, if you learn from the right person you can reduce the learning curve by a large amount.<\/p>\n I find there are no \u201cNatural Golfers\u201d and there are no \u201cNatural Traders\u201d but there are \u201cNatural Gamblers\u201d and \u201cQuitters\u201d and \u201cProcrastinators\u201d and \u201cBuy and Holders\u201d and \u201cI\u2019ll wait one more day for a turnaround\u201d traders who change their trading strategy every time their trade goes against them.<\/p>\n All these people can be grouped into four personality types:<\/p>\n (1.)<\/strong> People that are too aggressive and enter with no strategy. You know you have a problem if your current trading habit or method is based on:<\/p>\n 1. A complete lack of knowledge<\/span>:<\/strong> You use rumors, stock tips, and alert services, \u00a0financial media (Forbes, Money, Barrons, Wall Street Journal, CNBC), or message board postings from clueless strangers?<\/p>\n 2.<\/strong> Complete risk avoidance<\/strong><\/span>:<\/strong> You are afraid to take a chance to the point you get stopped out nearly every time or avoid trading altogether due to fear?<\/p>\n 3<\/strong>.<\/strong> Bad habits<\/strong><\/span>:<\/strong> Trading based on an emotion such as gut feelings, rather than a mechanical rule-based system.<\/p>\n 4. Foolishness<\/span>:<\/strong> Trusting a guru’s trade alerts because they post their Ferrari online and don’t shut up about how much money they are making when in reality their wealth came from selling trade alerts subscriptions and not actually trading.<\/p>\n 5. Desire to live the good life without putting in any effort<\/strong><\/span>: \u00a0<\/strong>95% of all adult men want one answer to solve all trading strategies and if they have to study they go to the next so-called guru when the prior couldn\u2019t teach them in one sentence.<\/p>\n If you would like to:<\/p>\n
\n(2.)<\/strong> People that are passive procrastinators that wait too long and don’t take action.
\n(3.)<\/strong> People, that just ask how much can I make and how expensive is it?
\n(4.)<\/strong> People that study everything to the point of never committing.<\/p>\n\n