Your own business can make you rich
One way to make big money is by trading the markets. You simply can’t get rich by working a regular job. You have to put some money to work, and let money work for you. To make the really big money, you must have knowledge, know-how, capital to work with, and courage without being reckless.
In the business world, there is really only one way to make a lot of money. You need to have your own business. There are many different types of businesses one can become involved with. A key is to go into a business which you know and understand. Do not start until you have acquired a good, solid knowledge of the business.
Trading the markets is a business, the business I know best. This includes the stock market and futures market. In this article, I will be sharing with you, a lot of valuable information, including common traits of the world’s most successful traders and investors. These are the key elements of successful trading and investing. Only elite market participants make big money trading the markets.
A foundation of knowledge
To achieve great results with your trading business, you need a solid foundation to build on. My idea of a solid foundation, is a good working knowledge of the following. Technical analysis, the stock market, the futures market, and trading psychology. I recommend you read, study, and thoroughly learn the knowledge, and information in these four books.
1. Introduction to Technical Analysis, by Martin Pring. This is an excellent book, produced by a leading technical analyst. You will find superb information concerning tools used by the world’s best technical analysts to evaluate emerging trends. The proper use of technical analysis, can really help you make big money trading the markets.
2. How to Make Money in Stocks, by William J. O’Neil. This is a national bestseller that provides secrets to building wealth in the stock market. Based on a massive study of top performing stocks from 1880 to 2009, you will learn proven techniques to find great stocks, before they make huge price gains.
3. How to Make Profits in Commodities, by W.D. Gann. This book is a great classic. It is the most complete writings of Gann, covering his 40 years of experience as a commodities trader. Successful rules and formulas used in his actual market operations are revealed. Gann is one of the greatest commodity traders ever.
4. Trading in the Zone, by Mark Douglas. This is the ultimate book when it comes to trading psychology. It will help traders overcome mental barriers that cause them to lose. You will develop a winning mindset. After that, there is no limit to your success. Trading psychology is what separates a fairly good trader from an elite one.
This will give you a base of trading knowledge. If you want to make big money trading the markets, you absolutely must put in the time and effort necessary. It normally takes a few years of very hard work, but the reward is certainly worth it.
Common traits of the best traders and investors
They all developed a successful trading strategy. Make sure it matches your personality, and its comfortable for you. The strategy must give you a specific edge each time you trade. This means the odds must be in your favor each time you trade. Your overall trading plan needs to address all contingencies, including money management.
Discipline is one trait shared by all great traders and investors. You must follow your trading plan 100% of the time. Success will depend on the execution phase. This takes strong discipline. It is the glue that holds everything together, on your journey to make big money trading the markets.
Flexibility is a key to success for all great traders and investors. The ability to adapt to changing market conditions is imperative. This is because markets can make enormous moves in a short period of time. Don’t get caught on the wrong side of a big price movement.
Money management or risk control is a must. Many traders make the mistake of only thinking about how much they can make. It is much more important to think about how much you could lose. All traders and investors will take losses. The key is to keep your losses as small as possible. Pre-determine where you will get out of a trade, before taking a position in the market. This can be achieved by the use of a stop-loss.
Independent thinking is necessary. You simply must do your own research and analysis. Don’t get caught up in mass hysteria. The great majority of traders and investors are usually wrong when it is most important to be right. An example is major turning points, such as the 2000 stock market top. Of course, there are other important traits, and characteristics shared by the world’s best traders and investors. This list gives you a great insight to what makes them so marvelous at what they do.