ATMASphere Aug 2014

5. High quality trades, many times, will not be perfect but they have
to be taken when they are close enough to the entry that they do not
need to be perfect to be profitable. There is an art to setting
parameters around entries and exits in your trading plan.
6. Position sizing of your trades will determine your trading success
as much as the quality of your entries and exits. You have to trade a
position size that you are comfortable with to keep the volume of
your emotions down so you can hear your trading plan. Also the size
of your losses has to be small enough to survive a string of losses that
will eventually occur.
7. Follow simple trading systems and create signals based on basic
principles. Complicated is generally not more profitable. Choose a
few key indicators for price and become an expert in them.
8. The most important thing a trader can do is to be open minded in
the educational process, and continue to learn after consistent
profitability is achieved. Taking short cuts through intense consistent
study is a very cheap detour. The new traders should be studying at
the beginning and not trading real money. In the markets, egos are
very expensive things to have in the very beginning.
Steve Burns has
the stock market
over 20 years and
active trader for
is the author of six
published by BN
ranks near the top
been investing in
successfully for
has been an
over 14 years. He
books all
Publishing. He
500 of all reviewers
on Amazon.com, and is one of the sites top reviewers for books
about trading. He has been featured as a top Darvas System trader
on DarvasTrader.com and interviewed for the Wall Street Journal
blog, Traders Magazine, and Michael Covel. He has also been a
contributor to Traders Planet, ZenTrader.ca, and SeeitMarket.com.
He lives in Nashville, TN with his three children, Janna, Kelli, and
Stephen III. He trades his own personal accounts
9. Trading is more about risk management ment and psychology than the
actual entries and exits. If you have the right risk management and
mindset you can develop a robust trading methodology and
eventually be successful. Without them no trading methodology will
work, so that part does not even manner if discipline and stop losses
are not applied to any kind of trading.
10. Trading is not an easy path to money but a lucrative one once the
learning curve is scaled, and perseverance finally overtakes the fear
of failure and losing streaks. .
AUGUST 2014
ATMASPHERE | 14