When we follow the laws of the road and decide to drive
within the speed limit we stand a better chance at avoiding
mortal danger; effectively you are increasing the odds of
an increased longevity. Similarly, there are beneficial
laws in the world of trading. Few would argue following the
laws of a successful trader is a bother when the end result
may directly effect the balance in your account. I invite
you to take a look at what these laws are, and how they
might make a positive impact in your life as a trader.
Law #1: Know Yourself
To understand your strengths and weaknesses, taking a
chance each day to look at yourself with complete honesty.
To know yourself is to take a step away from the vast world
of inner turmoil so many traders both expert and novice
experience. To know practice knowing yourself will bring
realization that regardless of what happens in the markets,
you are still the same person. Often times one will
experience confidence when winning, and a deflated sense of
self worth when losing. This is the general result of not
knowing ones self. When you know yourself you will be well
aware that the person you are remains the same regardless
of the wins and losses you may experience on a daily basis.
To know yourself is to be free from the emotional turmoil
often associated with day trading.
Law #2: Don't Rush In
If you've ever been in a rush you'll notice in hindsight
that your powers of observation decrease. Without a moments
notice the world goes passing by you. Most times when
trading you may find that you're in a rush to catch the
next big trade. More often then not rushing into a trade is
the wrong course of action, for many reasons. The need to
rush is an indicator that you are not well prepared, your
disposition when trading should be like that of a Tiger
laying in wait for its pray. However many people emulate
the nature of a Rat scrambling desperately to capture its
fair share of the cheese. When you feel comfortable and
confident that you're strategy is well prepared then you
may lay in wait. Opportunity will always come your way, but
when you rush in there is a greater chance it will pass you
by without a moments notice.
Law #3: Know The Future
Are we expecting too much of ourselves by demanding that we
know the future? Some may say yes, however as a trader this
should be one of your aspirations. Our goal is to bring
future events to fruition. When we take on the task of
knowing the future, as contrary as it may seem it's easiest
to think big. For instance, setting a goal 1 year into the
future and making it your prime objective to bring this
goal to realization would be a good start. Making this goal
reasonably difficult yet not necessarily an unrealistic
task would be an even better start. Dedicate your efforts
to achieving this one goal and put aside the trivial day to
day goals that often distract so many traders from their
primary objective. Accomplishing in the evening that which
you've set out to do in the morning is knowing the present;
accomplishing in 1-year that which you've set out to do
today, is knowing the future.
Law #4: Find a Mentor
Be aware that you are not the only student of these laws,
that there are others who may have already achieved
excellence in the laws which you are presently attempting
to master. Being aware of these individuals will afford you
the opportunity to receive invaluable tips. The principles
of these laws are exercised in many fields outside of
trading, become a student of those who have come before you
may cut a substantial lot of time from the learning curve
of your professional career as a trader.
Law #5: The Market Is Your Friend
To imagining that you are waging war with the market day in
and day out in order to achieve some level of financial
gain may leave you feeling torn and tattered on certain
days. The metaphor of war with the markets leaves you in a
zone where you are surrounded by enemies with superior
intelligence in a battle-field where the odds are always
stacked against you. If you can learn to befriend the
market then you'll find you've gained a valued friend and a
great teacher. When you free yourself from the concept so
many have of "war with the markets" you simultaneously free
yourself from the feeling of "Winning" days and "Losing"
days. In effect, you gain immunity from the feeling of
being a loser. In it's place you've gained a friend that
will always tell you where there might be room for
improvement.
These 5 Laws should rather be labeled suggestions. Remember
that success is an option, it is not a requirement. The
most useful of tips will often be applicable to multiple
areas of your life, it's popular often days to look at the
markets as a reflection of the world we live in. Achieving
proficiency as a trader will issue forth a ripple effect
often effecting other areas of your life. My hope is that
you enjoy these tips and the benefits they will render
within and around your professional life.
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Ranked in the Top 10 by Google as an International Forex
Money Manager Aaron Stokes is a professional in the field
of managed Forex accounts with an average of 10% growth per
month on managed accounts. For details visit:
http://www.forex-cipher.com
