Not everybody is cut out to be a share
trader and for many people entering the
markets, their natural trading rhythm and
strategy can be elusive ... but maybe
that's because they are less-than-honest,
with themselves .....

Hi folks,

As traders, there's a certain honesty required to
find where we fit into the markets best.

Some say, that short term trading is not the
way, but how do we know longer term trading
will be any better??

Jumping into stocks for solely fundamental reasons
can be as damaging as entering a stock, using poor TA.

Trading any market profitably is determined ONLY by
our trade entries and exits ... that is, better market timing
improves our win/loss ratio.

Sure, use FA and TA to make your entries, that's the
easy part ..... it's the exit that determines your profits
in any trade, so you better have an exit plan to take
profits, while they exist.

"Buy and hold" is only workable trading strategy, if you
have an exit plan ..... until you exit you have made nothing.

For example, some traders will remember a post calling for
top in HDR at around 1.40-.1.42, a little over 5 weeks ago.

"Just a Friday afternoon selloff," they said ..... HDR has
been down as much as 13%, since then and is still trading
well below that forecast high ..... so for the past 5 weeks
those traders have not made a cent in HDR.

That's fine you say, we can live with that, as HDR will
recover later in the year ..... meanwhile, you would be
earning more money in the bank!~!

So, let's go back a liitle further in HDR history, at the
$1.10 highs, some long term holders had an opportunity
to take profits, but chose to hold on ..... it was another
2 1/2 years before HDR rallied above 1.10 again ..... those
long term holders had not made a red cent for 2 1/2 years !

HDR fell 63% from its previous $1.10 high to .39 cents.

..... and if you think it can't happen to the blue chips, just
look at CBA ..... it took just 6 months to fall almost 40%
from $39 to $24 ..... and there's "long term investors"
that rode it down all the way ..... preferring to stroke
their ego, when CBA goes above $39 again ... although
that could be a while, as CBA is still trading at around $32.

There's no room for ego-based trading, if we want
to trade profitably ..... we need to be honest enough,
with ourselves, to recognise when a trade is going
backwards and bail out, before the pain gets worse.

So, rather than be a long term "investor", maybe a strategy
working around longer-term "trading" will help some ... but,
that means having an exit strategy and taking profits, while
they exist .....

..... and often the exit levels are very obvious, even
BEFORE we enter the trade ..... and better market timing
means a better win/loss ratio and more profits.
-----

There's one other issue that needs to be addressed in this
thread too ..... the question of whether some individuals
should be trading, at all.

Despite their wants and needs, NOT everybody is suited
to earning a living form the markets.

Yes, through no fault of their own, some of us are pushed
into thinking that the markets may be a means of making
a living ..... for example, discrimination in the workforce,
through age, gender or race may push some people
towards the markets, as they look for some "easy money".

Truth is, not everybody is suited to trading or investing,
period.

Everybody has different natural talents and if people
would show more faith in their own abilities and focus
on their natural skills, then there would probably not be
as many failed traders.

If your trading makes you stressed in any way, then
maybe you should be looking elsewhere to make your
money.

Sure trading can be learned, but it is hardly a good way
to make a living, if we can't sleep or get stressed out
about our trading ..... in fact, such traits are borne out of
a fear of losing ..... and it can be very unpleasant for some,
ending in physical illness, if sustained over a long period.

Looking for "easy money" in the markets may motivate
many people initially, but the cold, hard facts of trading in
the real world, will soon dispel that myth.

Earning a steady income from the markets can be
achieved, but to do it consistently ..... it takes good market
timing, coupled to a workable trading plan, with both
entries and exits clearly identified.

have a great weekend all

yogi

http://easy-trading-tools.00cd.com

_________________
"Time and knowledge, our scarcest resources." - yogi