RSS
May 18, 2006 at 9:33 am | | Comments 1

Great Expectations Series – Conclusion

The Great Expectations Series for traders has been fun to write and I hope you’ve gained something from it. The aim was to take a closer look at several aspects which combine to make up our expectations when it comes to trading. Although “expectations” could be interchangeable with “goals,” there is definitely more to the story! Let’s hit the highlights and wrap this up.

Personal Inventory – Take a good look at your resources available to you. This includes your time availability, your tolerance for risk, your personality traits, and of course trading capital. Each of these elements are separate but related things to consider when setting out to determine what you can expect from your trading.

Blending Your Style With the Current Environment – Gauging how the market is behaving on your timeframe will allow you to trade aggressively or walk away when the time is right in order to improve your profits and limit your losses. Networking with other traders is a great way to keep tabs on several trading methods and timeframes, helping you to know what is working and what isn’t. Knowing how and when to apply your abilities and resources will help you reach your goals faster and easier.

The Edge of Greatness – Every trader wants to become an overnight success, but the reality is that it might take some time. There is definitely a learning curve involved, and knowing that on the front end will help you remain patient and make good trading decisions. Starting out slowly and trading in small size can build confidence, allowing you to step things up when the time is right. You’ll also be able to improve your trading by adding new methods as time goes by, giving you opportunities to locate profits in different kinds of markets.

The Road Map – Good trading involves having a game plan, and your road map is the trading strategy you will implement. Whether you’re day trading or swing trading, knowing your timeframe and some entry and exit parameters will put you miles ahead of the crowd. Lasting success as a trader will come from practicing and refining your trading strategy day in and day out.

Eyes on the Prize – Goals are the heart of our expectations, but the groundwork needed to be put down before we tackled this topic. Having a target to aim for is imperative in any endeavor, and trading is the same way. Goals will allow you to measure your progress and stay on course as you strive to reach them. When setting goals for your trading, be realistic, be willing to adjust, include your emotions, monitor your progress, and most importantly put your written goals where you will see them. Your trading goals will keep you on track and motivate you to grow your abilities as well as your trading account!

The Chameleon Trader – Successful trading requires adaptation. Being willing to change, expecting change, and learning how to change will be the keys to your survival as a trader. You may need to adjust your trading method, your position sizing, and your personal spending habits along the way in order to continue growing and succeeding as a trader. Ultimately, you’ll only be a complete trader once you’re willing and able to adapt and change when what you’ve been doing no longer works as it should.

Writing this series has forced me to take a look at my current situation and trading goals, which is always a good thing. Trading sure isn’t easy, but deciding on a direction to go with your own trading should show you some immediate improvement. I certainly hope you’ve benefited from this series. If you have, please feel free to share your comments and insights here with the rest of us! Your ideas just might be the missing ingredient for the next person who comes along. Thanks for reading and I’ll look forward to more interaction with you going forward!

Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com