Profitable Stock Trading Lesson 1

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When I said I am going to teach you how to become a profitable trader, you probably thought that I will give you a set of indicators, which, if you follow it will make you rich. Alas, if life were only so simple! Sit back for a moment and think why so many traders lose money. Surely you know that a great majority of stock traders ( or for that matter FX traders, or commodity traders) lose. This is the first statistic that you should be aware of, and deal with. So make up your mind right now. Do you want to follow the herd, by doing quite what they do, or do you wish to become really successful?

If you do want to become rich, then stop looking for that elusive magical formula, or secret indicator, that will help you become a super trader. Remember, trading is a specialist function. Don't be misled into thinking that just by opening an account with E'Trade or some other broker, you are immediately ready to churn out profits because you read about some smart indicator in some article! There is a lot more to this business than finding a perfect indicator.

The really well-known but often misunderstood secret of successful traders is the art of money management. This is going to be the topic of lesson number 2.Suffice it for now to learn that while we should have money-making as our objective, our focus while trading should not be on that money. It should be on how we execute our trading strategy.

Before we go to the second lesson, take a few moments to see if the trading-related links on the left are useful for you. Sometimes, you can pick one idea, or concept, and benefit greatly from it.

Lesson 2