Trading

You have become interested in trading and decided that you are in fact, going to learn how to trade. You have read some books. You have gone to a seminar or two. You have even set up your own account, funded it, and are ready to trade. So what now.....What do you do first?

Trading, as you will learn, should you not already know, is as difficult a venture as you will ever pursue. It is a puzzle that most will not be able to solve, yet can be overcome by those who are ardent enough to pursue it with diligence and focus. To succeed you must understand the nature of the game. You must recognize that on the other side of every trade you make is someone else. Are they better prepared than you? If so, say goodbye to your money.

Markets work because market participants have different opinions. For every trader that is thinking long....there are usually an equal number who are thinking short.......and another group that has decided to remain on the sidelines, waiting and watching, unsure of their move. The movement of markets comes from the cummulative effects of all those opinions over time. Many of those participants have been trading in their market for years, and are seasoned with enormous experience. Those traders are successful and they prey upon naive, new traders who come with bold expectations but with no experience or knowledge.

Trading is like any profession and to be good at it requires years of dedication. But it is important that you start with the proper framework. You need to have a basic understanding of some of the essential elements that all professional traders share. The pages that follow are a guide to some of those elements. This is the beginning. You will only become successful by combining these ideas with hours and hours of effort.