The Unbreakable Laws of Trading

The Law of Process: Trading successfully in stocks, options, currency or any financial instrument is a process. The process of unending researches and constant improvement, which can fulfill your wildest dream not within twinkle of an eye like you think, but take more time than you expected. If your hope is to make fortune in a day, you are not going to be successful. In fact you are likely to end losing than making money. There are no successful traders who make the kill on the first day in trading let alone investing. What is most significant is every step you undertake daily towards your financial objective goal. The secret of success is found in daily agenda. If your new plan is investing or trading financial instrument for either short-term or long term, you must understand that staying in the process of becoming professional is more crucial than the day killing while investing for longer period of time without worry of the ups and downs of the index trigger your negative emotion, you are very likely to achieve success that will land in the promise land Trading is a process. You have to undergo the process yourself with guide from others such as your mentors, and other professional. A child will learn to crawl before walking and running, the child makes mistakes, a lot of fall and rise before gaining balance likewise trading. When it comes to trading and other form of investing many people tend to jump steps, skipping part of the process of learning and making mistakes. Everything you do is a process- a series of step, a chain of activities, preparing a meal is process, building houses is process that involve a lot activities as part of the process. Any skip in the part of the process may result in disaster in future that will jeopardize people's life. Only by improving the preparation and practices standard can we improve the result. A successful trader or investors know what is being required of him in the process of trading and wholeheartedly dedicate his life totally. Whether you want to trade or invest in Nigerian Stocks Exchange or trading foreign stocks on the internet you will have to follow the process. The Law of Inertial Every object stays at rest until is acted upon by an external force. Like what Jim Rohn said 'Don't let learning lead to knowledge. Let learning lead action. Action is the external force you have to exert to your learning and knowledge for getting desired result. This law seems to virtually apply to all things in life. This theory was postulated by Isaac Newton, popularly called Newton's law of motion: if no force acts on a body, then the body's velocity cannot change. You can imbibe the law of process only when you have overcome the law of inertial before taking action in the process. The law of process will be incomplete if you fail to practice what you have learnt. Thus you have to act to overcome initial impediment on your way in the process. Whatever apparently to be an obstacle should be removed. As a trader you will need to attend conference, workshop, and seminars, read books on trading strategies, attitude, money management and articles on thousands informative topical issues related to your business. This will more often than not showcase the complexity of the trading and investing which perhaps make it more difficult than your expectations. However, you will need to break initial force to convince yourself that you can do it and unveil the potential in trading. Law of Probability Experienced traders understand that trading is not more than a game of probability. It's probabilistic in nature. Nothing is 100% certain about accurate prediction of the market outcomes. It's more or less like educated guessing. As a trader you should be thinking about probable outcomes not exact because not all the intrinsic movements are explainable by the so called experts or analysts. Don't hold unrealistic expectations and be careful of about projection of the future. It is imperative for a good trader to research and understand the financial asset his trading and plan every trade according to his trading plan. If it works, he will make money and if it doesn't he knows the flaw in the system and accepts the loss(es) and move on to another trade. If you adhere with law of probability you will not unreasonably, not liquidating a losing trade, even after you acknowledged the trades potential is greatly diminishing thereby getting locked in a specific position with belief about reversal market direction. This has so many times ruined accounts even mine is not an exceptional. You should know that trading environment is different from all other environment. Trading has the appearance of something that should be easy to do couple with the great possibility of making handsome some of money in relatively short period of time. The market tease a trader with a very real possibility of fulfilling his wildest dream of wealth accumulations and financial independent at the same time stand ready and willing to take away all he has, even more. The game of trading is more of making money than being right Abiodun Babalola is a professional trader. He writes for magazines and newspaper, speaks in seminars and conference. http://www.abiodunbabalola.blogspot.com Article Source: http://EzineArticles.com/?expert=Abiodun_Babalola Article Source: http://EzineArticles.com/6040028