Hundreds of thousands of people all over the world trade stocks, options,
commodities, FOREX, and more. All of these investors hope to be successful, but the
fact is, most are not. The reasons for failure in the market are as varied as the traders
themselves, but for the great majority it comes down to their approach to trading.
When traders allow emotions like greed and fear to play in their decisions, they are
bound to fail. Also, relying on hunches, guesses, tips from friends, or even the advice of
your broker are likely to lead to disappointment.
Successful traders have several things in common. One, they leave emotions out of
their trades. Two, they know not all trades will be winners. Their goal is to beat the
odds and make a majority of winning trades. Three, they have a plan. They manage
their funds and never trade more than they should. Finally, many traders use Technical
Analysis – the science of trading.