What differentiates successful trader from and a failed trader?
What differentiates successful trader from and a failed trader?
A good experienced trader will make a thorough analysis of the situation before jumping in. He might take a look to see where crude oil is on a chart, considering: Is it overbought? How much risk is involved? How much can he hope to make on the trade, and so on? After meeting any criteria he may have, he will next look to time an entry if he has decided to get in. One of the things that make this trader better is that after deciding to buy, but before getting in, he will start to make an exit strategy for the trade. After getting in he will evaluate the trade on a regular basis. Basically, he would have a both a plan of attack and a defensive strategy for the trade, or more precisely he would have a game plan for the trade from start to finish. But a new trader won’t have any plan and won’t follow it if he/she has one.
This Simple, Subtle difference is what differentiates a new trader from an experienced trader. Or you could say, it is the difference between a losing trader and a winning trader.