|
Home / Finance
Are You Trading to Your Strengths?
By:Brian McAboy
Copyright 2006 New Ireland Ventures, LLC
In your trading, are you playing to your strengths, or are you simply being an "opportunity seeker"?
There is a huge difference between the two and if you're just an opportunity seeker, then you are leaving yourself open to frustration and losses.
There are many parallels between trading, business and gambling, and your ultimate success long-term will be determined by how you approach any of the three. Playing to your strengths is critical in all three.
In any of the pursuits, there is competition and you always want to make sure that you're playing to your strengths and not your weaknesses.
The objective is winning, that is profiting, and you want every advantage that you can get.
Too often, the opportunity seeker will go after an opportunity just because they see that there's money to be made, and they figure that they can shore up their weaknesses (learn more) enough to go get that money.
Let's take a brief look at how this applies in each area, keeping in mind the parallels between them.
In business, the long term successes are built by those with an end goal in mind, a vision of what the business will look like when it's mature.
This is critical because the company must stay on a course that is consistent with its vision while it is growing. Distractions and deviations from the path only serve to slow it down or even take it backwards.
Successful business leaders know when to pursue an opportunity and when to say "no". Saying "no" is essential to keeping the company's activities (investments of time) focused where competitive advantages exist and avoiding those where the company is at a disadvantage.
In gambling, the poker player will stay at the BlackJack table and make his money there. He won't jump up and run to the Roulette table just because he heard somebody just won $50,000 over there. He knows what he's good at and will only venture over to other tables for entertainment, not to make money.
In Trading, let's say investing for the sake of argument, a good real estate investor that knows how to make $1 million a year isn't necessarily going to do well in trading. They are completely different games.
Just because a person knows how to buy properties right, increase their value through rehab or raising rents, does not mean that they will have the talents or skills to make money in the Futures or Forex markets.
Even an experienced trader should be hesitant to jump from one game to the next. A buy-and-hold position trader should exercise great caution before jumping into day-trading, and a spread better should hone his skills before thinking about buying (or selling) outright futures contracts.
Each strategy (or game let's say) has different skills associated with it, and different emotional requirements.
The other serious consideration is your proficiency level - period. This combined with your ability to devote time to trading.
If you are completely new to trading or you haven't yet become proficient at the necessary skills to trade, then you definitely should seek out help.
The learning curve can be very costly in trading, and if you don't have the time or a plan to become proficient, how do you ever expect to make regular profits from it?
If you don't have the proficiency, the strengths, needed to be a good trader, nor do you have the time and resources to become one, you may want to consider other choices available to you.
If you have neither the skills nor the time to develop them, but want to take advantage of the nice money to be made in trading, you may want to consider a managed account. Why settle for an amateur trading with your money (YOU), when you can have a pro do it for you?
Do your Due Diligence first though!!! Ask for the track record and the plan going forward.
Your next option if you're "starting from scratch" is to trade with the assistance of a seasoned broker.
That's what they are there for. Of course you can find very low commission brokers to deal with, but you may get just what you pay for. A good broker can be found for $50-$100 round turn commission, and they'll give you the best advice they can.
In the long run, you're likely to be way better off - if you'll follow their advice!
Again, ask for their track record, and check with the NFA to see if they have any complaints.
It wouldn't hurt to see if the broker you're considering is recognized within the trading community as being good.
Many very good brokers publish regular articles or advisory columns on respected websites and in established periodicals.
Generally, if you see that the person has been published for a period of years, then that is a good sign.
The wackos and charlatans bounce around too much and aren't allowed to stay in one place for long before their reputation catches up with them.
Until you have the strengths yourself, borrow them from someone who has them while you're developing.
When you have the proficiency, the skills, and the resources, only then should you venture out on your own. And that is only if you are so inclined to actually becoming a trader and doing it all yourself.
If your true objective is to make money, then play it smart. Make use of other people's knowledge and skills until you have developed your own.
Of course, if you really don't want to devote the time to being a full-time or highly active trader, but still want trading to be part of your income portfolio, consider your other choices.
Whatever you do, don't simply chase another "opportunity" to make money if it doesn't play to your strengths.
For Trading, those strengths need to be discipline, emotional control, coach-ability, ability to focus, follow-through, decisiveness, understanding of probabilities, dealing with uncertainty, and a slew of others.
There are activities for entertainment and others for making money.
Trading can be both, but if it is not taken seriously, with a sincere review of your own characteristics and desires, then it can wind up being neither. In any endeavor where money is the end result, get help from a trusted friend. Rememer, a good mentor is there to show you the right steps to take and those to avoid.
Digg
del.icio.us
Blink
Stumble
Spurl
Reddit
Netscape
Furl
Article keywords: trading, onlinetrading, currency trading, day trading, emini trading, future trading, futures trading, gann trading, learn trading, online trading, paper trading, profits trading, simulated trading, swing trading, trading e-book, trading futures, trading plan, tradin
Article Source: http://www.articles2k.com
Brian McAboy, The Aspiring Trader's Best Friend
www.subtletrap.com/1.html
|
|
| Top Finance Articles |
- 1). Locate And Find Debtors With A Credit Collection Agency By : Stu Pearson
It can be a frustrating experience trying to collect a debt from a customer who just seems unwilling to pay. Letters sent to their address go ignored, and phone calls are answered with empty promises of payment. While this is certainly a bad scenario, what if a customer who owes you money just disappears? It is possible to locate and find debtors with a credit collection agency, and in this article we’ll explain to you the methods behind their tracking.
|
|
|
|
|
- 4). Who Is Responsible For Closing Costs By : Raynor
Buying or selling a home is a euphoric experience for both of the parties involved. This euphoria can cool when you learn which party is responsible for the closing costs.
Who Is Responsible For Closing Costs
When looking to buy or sell a home, every person eventually arrives at the question of funding closing costs on the transaction. To put it simply, both buyers and sellers typically are responsible for some of the closing costs.
|
- 5). Family Finance By : Joseph Kenny
One of the hardest things that young couples report during their first year of marriage is getting to grips with joint finances. While most are willing to share what they have with their partner, they are not sure on the best way to bring this sharing into effect so that they can share with their new partner, but at the same time maintain financial security and a degree of independence.
|
- 6). Preparing Your Finances For A Bird Flu Pandemic By : Pandemic Zone
If you have been paying attention to the news lately you may of heard of the threat of bird flu and a world pandemic. What would this mean and how would it affect your financial holdings. The World Bank, which has estimated that a bird flu pandemic lasting a year could, cost the global economy up to $800 billion dollars. The economic toll on the world economy will be catastrophic.
|
|
|
- 8). High Gas Prices and Ways to Save By : essmeier
With Memorial Day around the corner, the great American travel season is here. During the summer, most Americans take at least one extended vacation, and four fifths take that trip by automobile. Unfortunately, this year, the price of gas is at record highs, and no one likes to spend their vacation money on gasoline. While there is little to be done about the price of gas itself, there are some things the average vacationer can do to help ease the costs of auto travel.
|
|
|
|
|
| New Finance Articles |
- 1). How To Earn Money Online In Five Easy Steps By : John Morris
Living in Los Angeles, Greg realized that there are a lot of people who work from home rather than the office. One reason is that many of these executives are writers and producers of films and television shows...
|
- 2). You Can Stick to Your Budget By : Jonathon Hardcastle
Recent studies have shown that Americans are spending less money on necessities than ever before. Yet, more Americans are also in debt. The unspoken fact that makes both those statements true is that Americans are spending more and more money on luxury items.
|
- 3). Technical Analysis Of Stock Data By : John Morris
To perform a technical analysis is simply examining stock chart data in order to make predictions about the future of that stock. Investors who use this style of analysis are often unconcerned about the nature or value of the companies they trade stocks in...
|
- 4). Getting The Most Money Out Of Selling Your House By : John Morris
It is easier said than done to make a profit in the real estate market nowadays. Those that manage to consistently turn a profit on real estate investments have been working in that field for years and are using proven strategies in order to minimize risk...
|
|
|
|
|
|
|
|
|
|
|
- 10). How Can I Be Approved For A Low Rate Credit Card? By : Mike Singh
When applying for a credit card you may come upon what is called a low rate credit card, what is this exactly and how can it help you? First of all you should know that a low rate credit card is usually an excellent way to go when applying for a credit card. Find out more...
|
|
|
