Whether you are investing the share market, futures marketplace, or any other trading venue, a investing philosophy is crucial because it will dictate how you make trading decisions. A terrible philosophy will inevitably lead to bad long-term results. An excellent investing philosophy will most likely lead to good results, if you combine it with discipline and patience.
The definition of philosophy is the love of, or the look for, wisdom or knowledge. It also means the general rules or laws of a field of knowledge. That being said, I will stock with you some of my philosophical thoughts on trading, and general rules that has to be followed for achievement in the world of investing.
Trading is one of several most difficult endeavors you could attempt; even so you’ll find great riches for those who become elite. Not simply do you must have a successful philosophy, way and rules, you also need to realize the proper psychology of trading. This usually means going against normal human nature. This is actually the psychological component of trading that separates the fairly great trader from an elite investor. It takes a few years of correct trading education to be successful in the long run.
When I primary began trading. I, like most people else, didn’t do well my primary few years. I thought it was going to be fast. I could only read a book or two, purchase a number of secret indicator or strategy, and just like that, I can be a great trader. I also tried a number of advisory services. I still wasn’t a prosperous investor. My problem was, I had no foundation of real investing knowledge, and I certainly did not realize the psychological component of trading.
In the early 1990′s, I finally figured out I required a prosperous trading philosophy, to grow my foundation of investing knowledge around. I studied numerous of the world’s finest traders. This included William J. O’Neil, Jesse Livermore, Bernard Baruch, Gerald Loeb, Nicolas Darvas, Richard Dennis, W. D. Gann, Jack Dreyfus, Amos Hostetter, and others. I seen out they all traded with the trend. They were for the most part, trend followers. I based my investing philosophy on a similar premise as some of the world’s finest stock traders.
My investing philosophy is that marketplaces from time to time make massive moves. The massive money is created trading these big moves. I learned this from researching the price and amount action of the share marketplace, and the commodities marketplace. I trade with the trend. The suggestions I implement are my specific guidelines I follow once trading. They flow logically from my trading philosophy, which is to trade with the trend. I’ve traded successfully for a long time; nevertheless it did take a lot of time and effort to become a prosperous trader.
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