The easiest thing to do is to look at what the majority are doing and don’t do it! In short, find out what 90 per cent of websites are promoting that traders should do and you’ll know what successful traders don’t do.
What do you need to be successful in the market?
- Be honest with yourself
There’s an old saying, ‘what a wise man does in the beginning, a fool does in the end.’ When I ask people about their trading process and what rules they use, I find that so many have followed the path of the 90 per cent and few see their own mistakes.
- Get a good education
If you trade without the right knowledge the market will eventually take your money. More men than women try to take short cuts and end up taking higher risks than they need to.
- Develop a solid trading plan
The 90 per cent who fail, fail to plan properly. They’ve missed or ignored a critical step because they either don’t have a trading plan, or if they do, I’ve found it hasn’t been tested using the right process.
- Be committed
Having the right attitude is critical. Be clear about what you want to achieve and why, and commit to it. A successful trader commits time and money to developing the right knowledge, skills and gaining experience in the market.
So, are you one of the 90 per cent or are you different? Being different means you have the foundations to become a great trader.
What do we expect in the market?
It’s positive to see the All Ordinaries Index (XAO) pulling back for a couple of weeks from the high at 6,245.9 points in May. Trade disputes between Europe and the US continue to weigh on markets, which assisted the XAO to trade lower at the right time.
The market softened to a low of 6,072.6 points on Wednesday, before it traded up and found support at around 6,100 points at the end of the week. May and June are typically down months so the selling activity at this time is normal. Portfolio managers reshuffle holdings in July and this is often when the market experiences a strong rebound. Overall, the current outlook remains bullish.
Dale Gillham Chief Analyst at Wealth Within – www.wealthwithin.com.au