The lure of "easy money" attracts many new people to the markets each year, most with dreams of working from home earning a small fortune with just the click of a button.
If it were that easy we'd all be doing it, right! In fact the cold reality of trading is that it is extremely difficult to achieve success over a long period of time.
It is widely touted about that at least 90% of traders fail sooner or later, so before you risk a single penny you must be mentally prepared and extremely organised.
The point of this article is to highlight where you need to begin, long before you place any trade in any marketplace.
Do not risk your money until you are ready, please remember that all markets are populated by extremely talented individuals, some with the best education money can buy, some with the street smarts and quickness of thought to take your money before you can blink.
A trading plan is where you need to start, PERIOD! There is no substitute for the trading plan, and you are extremely unlikely to be successful without one.
A well written and fully organised trading plan will help you to avoid making the common mistakes that so many new traders make.
These mistakes often lead to failure or at least loss in the first instance.
All things that a good trader needs can be contained within the plan, which can be adjusted and monitored as you practice and trade.
Over time your plan will become second nature to you and you will begin to function correctly without a second thought giving you yet more chance of success.
Without a plan you will simply not know why you are making the mistakes, and how to correct them.
Many traders go on making the same mistakes over and over until they either go bust, or throw in the towel and become part of the 90% who don't make it.
In conclusion the plan must cover a whole spectrum of things, from personal psychology through to analysis and trading systems.
Also included in the plan should be trading timeframes, systems and diaries.
Perhaps the most important area of the plan is the section where you outline the "rules" about how you perceive and deal with risk.
As you can see there is a lot to think about, but when you consider the upside then there is no question that a trading plan is where you need to start.
At Altera Futures we offer a comprehensive trading plan course for anyone interested in trading in any market.
Our plan is designed to fit around your personality and circumstances.
If it were that easy we'd all be doing it, right! In fact the cold reality of trading is that it is extremely difficult to achieve success over a long period of time.
It is widely touted about that at least 90% of traders fail sooner or later, so before you risk a single penny you must be mentally prepared and extremely organised.
The point of this article is to highlight where you need to begin, long before you place any trade in any marketplace.
Do not risk your money until you are ready, please remember that all markets are populated by extremely talented individuals, some with the best education money can buy, some with the street smarts and quickness of thought to take your money before you can blink.
A trading plan is where you need to start, PERIOD! There is no substitute for the trading plan, and you are extremely unlikely to be successful without one.
A well written and fully organised trading plan will help you to avoid making the common mistakes that so many new traders make.
These mistakes often lead to failure or at least loss in the first instance.
All things that a good trader needs can be contained within the plan, which can be adjusted and monitored as you practice and trade.
Over time your plan will become second nature to you and you will begin to function correctly without a second thought giving you yet more chance of success.
Without a plan you will simply not know why you are making the mistakes, and how to correct them.
Many traders go on making the same mistakes over and over until they either go bust, or throw in the towel and become part of the 90% who don't make it.
In conclusion the plan must cover a whole spectrum of things, from personal psychology through to analysis and trading systems.
Also included in the plan should be trading timeframes, systems and diaries.
Perhaps the most important area of the plan is the section where you outline the "rules" about how you perceive and deal with risk.
As you can see there is a lot to think about, but when you consider the upside then there is no question that a trading plan is where you need to start.
At Altera Futures we offer a comprehensive trading plan course for anyone interested in trading in any market.
Our plan is designed to fit around your personality and circumstances.
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