Stock Options Trading Millionaire Concepts

Having been trading stocks and alternatives in the capital markets professionally for many years,I have seen numerous ups and downs.

I have actually seen paupers end up being millionaires overnight …

And

I have actually seen millionaires become paupers over night …

One story informed to me by my coach is still engraved in my mind:

"As soon as,there were two Wall Street stock market multi-millionaires. Both were extremely successful and chose to share their insights with others by offering their stock market forecasts in newsletters. Each charged US$ 10,000 for their opinions. One trader was so curious to know their views that he invested all of his $20,000 cost savings to purchase both their viewpoints. His friends were naturally thrilled about what the two masters needed to say about the stock exchange`s direction. When they asked their good friend,he was fuming mad. Baffled,they asked their buddy about his anger. He stated,`One said BULLISH and the other stated BEARISH!`."

The point of this illustration is that it was the trader who was wrong. In today`s stock and option market,people can have different viewpoints of future market instructions and still profit. The differences lay in the stock choosing or choices technique and in the mental attitude and discipline one uses in executing that method.

I share here the basic stock and alternative trading concepts I follow. By holding these concepts strongly in your mind,they will guide you regularly to success. These principles will assist you reduce your threat and permit you to examine both what you are doing right and what you might be doing wrong.

You might have checked out concepts similar to these prior to. I and others use them since they work. And if you memorize and reflect on these principles,your mind can use them to guide you in your stock and options trading.

CONCEPT 1.

SIMPLENESS IS PROFICIENCY.
Wendy Kirkland
I learned this from -,When you feel that the stock and options trading method that you are following is too complicated even for simple understanding,it is most likely not the very best.

In all elements of successful stock and options trading,the most basic approaches often emerge victorious. In the heat of a trade,it is easy for our brains to become emotionally overloaded. If we have a complex strategy,we can not keep up with the action. Easier is much better.

CONCEPT 2.

NO ONE IS GOAL ENOUGH.

If you feel that you have absolute control over your feelings and can be unbiased in the heat of a stock or choices trade,you are either a hazardous species or you are an unskilled trader.

No trader can be absolutely objective,particularly when market action is unusual or extremely erratic. Much like the ideal storm can still shake the nerves of the most skilled sailors,the best stock market storm can still unnerve and sink a trader extremely quickly. For that reason,one should strive to automate as many critical elements of your method as possible,especially your profit-taking and stop-loss points.

PRINCIPLE 3.

HOLD ON TO YOUR GAINS AND CUT YOUR LOSSES.

This is the most essential concept.

A lot of stock and alternatives traders do the opposite …

They hang on to their losses way too long and watch their equity sink and sink and sink,or they leave their gains too soon just to see the rate increase and up and up. In time,their gains never ever cover their losses.

This principle takes some time to master correctly. Reflect upon this principle and examine your previous stock and choices trades. If you have been undisciplined,you will see its reality.

CONCEPT 4.

HESITATE TO LOSE MONEY.

Are you like the majority of novices who can`t wait to leap right into the stock and options market with your money wanting to trade as soon as possible?

On this point,I have actually found that the majority of unprincipled traders are more afraid of losing out on "the next huge trade" than they hesitate of losing cash! The secret here is STAY WITH YOUR STRATEGY! Take stock and options trades when your method signals to do so and prevent taking trades when the conditions are not satisfied. Exit trades when your technique states to do so and leave them alone when the exit conditions are not in place.

The point here is to be afraid to discard your money since you traded needlessly and without following your stock and choices strategy.

CONCEPT 5.

YOUR NEXT TRADE COULD BE A LOSING TRADE.

Do you definitely believe that your next stock or alternatives trade is going to be such a huge winner that you break your own money management guidelines and put in whatever you have? Do you remember what typically takes place after that? It isn`t quite,is it?

No matter how positive you might be when getting in a trade,the stock and alternatives market has a way of doing the unanticipated. Therefore,always adhere to your portfolio management system. Do not intensify your expected wins since you might end up intensifying your extremely real losses.

PRINCIPLE 6.

GAUGE YOUR PSYCHOLOGICAL CAPABILITY PRIOR TO INCREASING CAPITAL OUTLAY.

You understand by now how various paper trading and real stock and alternatives trading is,do not you?

In the very same method,after you get used to trading real cash regularly,you find it incredibly different when you increase your capital by 10 fold,do not you?

What,then,is the distinction? The distinction remains in the psychological concern that features the possibility of losing more and more real cash. This takes place when you cross from paper trading to genuine trading and likewise when you increase your capital after some successes.

After a while,most traders realize their optimal capability in both dollars and emotion. Are you comfortable trading as much as a couple of thousand or tens of thousands or numerous thousands? Know your capacity before committing the funds.

PRINCIPLE 7.

YOU ARE A BEGINNER AT EVERY TRADE.

Ever seemed like a professional after a few wins and then lose a lot on the next stock or alternatives trade?

Overconfidence and the false sense of invincibility based on past wins is a dish for catastrophe. All experts appreciate their next trade and go through all the proper steps of their stock or alternatives technique prior to entry. Deal with every trade as the first trade you have ever made in your life. Never ever differ your stock or alternatives technique. Never ever.

PRINCIPLE 8.

YOU ARE YOUR FORMULA TO SUCCESS OR FAILURE.

Ever followed a successful stock or alternatives technique just to fail severely?

You are the one who figures out whether a method succeeds or stops working. Your personality and your discipline make or break the technique that you use not vice versa. Like Robert Kiyosaki says,"The financier is the asset or the liability,not the investment."

Understanding yourself first will lead to ultimate success.

CONCEPT 9.

CONSISTENCY.

Have you ever altered your mind about how to implement a strategy? When you make changes day after day,you end up capturing nothing but the wind.

Stock exchange changes have more variables than can be mathematically developed. By following a proven technique,we are assured that someone successful has actually stacked the odds in our favour. When you evaluate both winning and losing trades,identify whether the entry,management,and exit fulfilled every criteria in the method and whether you have actually followed it specifically before altering anything.

In conclusion …

I hope these basic standards that have led my ship out of the harshest of seas and into the best harvests of my life will assist you too. Best of luck.