| Often, I receive requests from members of my | | | | exit with a stop loss. |
| stock market trading discussion group to give my | | | | Again, when the winning traders have computed their |
| views on technical analysis of stocks that they are | | | | entry and exit and stop loss points, these traders |
| watching. In the course of discussion, I discovered | | | | can approach theirtrading day with guarded optimism, |
| one common factor which separates the winning | | | | watching whether an expected rally is on the cards |
| traders from the losing traders. | | | | or not. By watching pre-determined price points, the |
| In general, both group of traders like to scan their | | | | trader can know whether a rally has in fact begun |
| lists of active stocks to uncover possible trading | | | | and to start to trade in a more aggressive manner or |
| candidates. However, the traders in the winning group | | | | to stop trading on wrong expectations which comes |
| are specific about their trading, and have their entry | | | | so easily by being influenced by tips here and there. |
| and exit points well spelt out in a specific trading plan. | | | | If the trade goes against them and hit their stop |
| In their trading,they have precise entry and exit | | | | loss, they take their loss unemotionally and are out |
| points...so that the trade is unemotional. After they | | | | of the market, thus limiting their losses. |
| have entered a trade, either they are correct and | | | | Remember, you involve hard earned money into your |
| ride the trend or they are wrong and they exit with | | | | trading and investment.There is nothing VAGUE about |
| a loss that has been predetermined. There is nothing | | | | trading. Every entry and exit points is calculated |
| vague in their trading. | | | | before hand to enable you to control your risk, if you |
| In contrast, those who are losing money in their | | | | are to become a successful trader. |
| trades invariably do not have a trading plan, or at | | | | Learn how to do this well and you will be a |
| least a semblance of a trading plan. This group of | | | | consistent trader. Test every tip and breathe |
| traders jump on tips provided by others without | | | | specifics into your trades and you can make profits. |
| being able to check or verify the tips from some | | | | In every profession, it is the specialist who makes |
| analysis, whether technical or fundamental. They do | | | | the most money. Learn to excel in preparing your |
| not have any idea of when to enter the trade or to | | | | trading plan and you will be profitable. |