A Successful Trading Philosophy

By Thomas Kant

Whether you are investing the share market, futures marketplace, or any other trading venue, a investing philosophy is crucial because it will dictate how you make trading decisions. A terrible philosophy will inevitably lead to bad long-term results. An excellent investing philosophy will most likely lead to good results, if you combine it with discipline and patience.

The definition of philosophy, is the love of, or the seek, wisdom or knowledge. It also means the general principles or laws of a field of knowledge. That to become said, I will stock with you a number of my philosophical thoughts on trading, and general guidelines that ought to be followed for success in the world of investing.

Investing is one of the most difficult endeavors you will be able to try, but you'll find good riches for those who turned into elite. Not simply do you must have a prosperous philosophy, plan and principles, you also ought to realize the right psychology of investing. This typically means going against ordinary human nature. This is actually the psychological component of investing that separates the fairly great investor from an elite trader. It takes several years of right investing education to be prosperous in the long run.

When I primary began trading. I, like most people else, didn't do well my primary few years. I thought it was going to be fast. I could only read a book or two, purchase a number of secret indicator or strategy, and just like that, I can be a great trader. I also tried a number of advisory services. I still wasn't a prosperous investor. My problem was, I had no foundation of real investing knowledge, and I certainly did not realize the psychological component of trading.

In the early 1990's, I finally figured out I required a prosperous trading philosophy, to grow my foundation of investing knowledge around. I studied numerous of the world's finest traders. This included William J. O'Neil, Jesse Livermore, Bernard Baruch, Gerald Loeb, Nicolas Darvas, Richard Dennis, W. D. Gann, Jack Dreyfus, Amos Hostetter, and others. I seen out they all traded with the trend. They were for the most part, trend followers. I based my investing philosophy on a similar premise as some of the world's finest stock traders.

My trading philosophy is that markets from time to time make enormous moves. The enormous money is made trading these enormous moves. I learned this from studying the cost and volume action of the share market, and the commodities market. I trade with the trend. The techniques I implement are my particular guidelines I follow when investing. They flow logically from my investing philosophy, which is to trade with the trend. I have traded successfully for a long time, however it did take too much time and effort to be a prosperous investor.

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