Stock Options Trading Millionaire Concepts

Having been trading stocks and alternatives in the capital markets expertly over the years,I have actually seen lots of ups and downs.

I have actually seen paupers become millionaires over night …

And

I have actually seen millionaires become paupers overnight …

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

"Once,there were 2 Wall Street stock exchange multi-millionaires. Both were extremely successful and chose to share their insights with others by offering their stock market projections in newsletters. Each charged US$ 10,000 for their viewpoints. One trader was so curious to know their views that he spent all of his $20,000 cost savings to buy both their viewpoints. His pals were naturally delighted about what the two masters had to state about the stock market`s direction. When they asked their friend,he was fuming mad. Baffled,they asked their pal about his anger. He said,`One stated 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 various opinions of future market direction and still earnings. The distinctions lay in the stock choosing or options method and in the mental attitude and discipline one utilizes in implementing that method.

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

You may have checked out concepts similar to these prior to. I and others utilize them because they work. And if you remember and review these concepts,your mind can use them to assist you in your stock and alternatives trading.

PRINCIPLE 1.

SIMPLICITY IS PROFICIENCY.
Wendy Kirkland
I picked this up from -,When you feel that the stock and options trading approach that you are following is too intricate even for easy understanding,it is probably not the very best.

In all elements of effective stock and options trading,the easiest techniques typically emerge victorious. In the heat of a trade,it is easy for our brains to end up being mentally overloaded. If we have a complex method,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 outright control over your emotions and can be objective in the heat of a stock or options trade,you are either a dangerous species or you are an unskilled trader.

No trader can be definitely objective,particularly when market action is uncommon or hugely unpredictable. Much like the perfect storm can still shake the nerves of the most seasoned sailors,the best stock exchange storm can still unnerve and sink a trader very quickly. For that reason,one must strive to automate as lots of vital aspects of your strategy as possible,particularly your profit-taking and stop-loss points.

PRINCIPLE 3.

HOLD ON TO YOUR GAINS AND CUT YOUR LOSSES.

This is the most important concept.

Many stock and choices traders do the opposite …

They hang on to their losses way too long and enjoy their equity sink and sink and sink,or they leave their gains prematurely only to see the rate go up and up and up. With time,their gains never cover their losses.

This principle takes some time to master effectively. Contemplate this concept and examine your past stock and options trades. If you have actually been unrestrained,you will see its fact.

CONCEPT 4.

BE AFRAID TO LOSE MONEY.

Are you like many newbies who can`t wait to jump right into the stock and choices market with your money wanting to trade as soon as possible?

On this point,I have discovered that many unprincipled traders are more scared of losing out on "the next big trade" than they are afraid of losing cash! The key here is STICK TO YOUR TECHNIQUE! Take stock and alternatives trades when your method signals to do so and prevent taking trades when the conditions are not fulfilled. Exit trades when your technique says to do so and leave them alone when the exit conditions are not in place.

The point here is to be scared to get rid of your money because you traded unnecessarily and without following your stock and choices technique.

PRINCIPLE 5.

YOUR NEXT TRADE COULD BE A LOSING TRADE.

Do you definitely think that your next stock or choices trade is going to be such a big winner that you break your own money management guidelines and put in whatever you have? Do you remember what normally takes place after that? It isn`t pretty,is it?

No matter how positive you might be when going into a trade,the stock and options market has a way of doing the unanticipated. For that reason,always stick to your portfolio management system. Do not intensify your expected wins because you may end up intensifying your really real losses.

CONCEPT 6.

EVALUATE YOUR EMOTIONAL CAPACITY BEFORE INCREASING CAPITAL OUTLAY.

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

In the very same way,after you get used to trading genuine cash consistently,you find it extremely different when you increase your capital by 10 fold,do not you?

What,then,is the distinction? The difference is in the psychological concern that features the possibility of losing increasingly more genuine money. This happens when you cross from paper trading to real trading and also when you increase your capital after some successes.

After a while,most traders realize their optimal capacity in both dollars and feeling. Are you comfortable trading approximately a few thousand or tens of thousands or hundreds of thousands? Know your capability before committing the funds.

PRINCIPLE 7.

YOU ARE A BEGINNER AT EVERY TRADE.

Ever seemed like a professional after a couple of wins and then lose a lot on the next stock or choices trade?

Overconfidence and the false sense of invincibility based upon past wins is a dish for disaster. All specialists respect their next trade and go through all the proper actions of their stock or choices strategy prior to entry. Treat every trade as the first trade you have ever made in your life. Never deviate from your stock or options method. Never ever.

CONCEPT 8.

YOU ARE YOUR FORMULA TO SUCCESS OR FAILURE.

Ever followed a successful stock or choices strategy only to fail terribly?

You are the one who determines whether a technique is successful or stops working. Your personality and your discipline make or break the technique that you utilize not vice versa. Like Robert Kiyosaki states,"The investor is the possession or the liability,not the investment."

Understanding yourself first will result in ultimate success.

CONCEPT 9.

CONSISTENCY.

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

Stock market changes have more variables than can be mathematically developed. By following a tested method,we are guaranteed that somebody effective has actually stacked the odds in our favour. When you examine both winning and losing trades,identify whether the entry,management,and exit met every requirements in the strategy and whether you have followed it exactly before changing anything.

In conclusion …

I hope these easy guidelines that have led my ship out of the harshest of seas and into the very best harvests of my life will direct you too. Best of luck.