The Four Requirements to Trading
By Larry Jacobs
Here is your first lesson that is extremely important. I am Larry Jacobs - Editor of Traders World magazine. I am a successful trader and I am here to help you to finally become a successful trader.
Knowledge
Knowledge is the most important thing. You need to know all that you can know about the markets. You must think that trading is really a profession. It is not some sideline. It does take many years to do the study to become a profession in any field such as a doctor, lawyer and even today a farmer needs a lot of study.
Be Professional
There is no room for unprofessional-ism in any field that makes money. Unfortunately there are no good schools of advanced learning that teach trading. Over many years traders gain experience from trading and by his trading mistakes. You need to find a good trading system to guide you and then spend a lot of both time and effort to learn how it works and when it does not work. You will not become successful by luck. That will never replace knowledge.
The best way to find the system that fits you is to subscribe to Traders World magazine that introduces you to many different systems. Most successful traders that are reading this also subscribe to Traders World. A trader never stops learning and get new ideas to incorporate into his trading. If you are reading this you should be a subscriber.
Temperament
Your temperament is extremely important. If you knew all the right rules but lack the guts to enter and execute trades you would soon learn that you won't any money at this profession. You must be steadfast in your belief as to your program even when all around you disagree with what you are trading and the direction you think that market is going in. You must have total perseverance.
Someone is always going to tell you that you are wrong. This is how you can tell that you have the temperament to be a trader. Only you can know. You must always have a balanced point of view that allows you to mentally accept losses and accept profits and not lose your perspective. Your temperament will be tested many times in the line of fire. You must conquer your negative feelings that will occur almost daily in the line of fire. You must conquer you greed and your fear
Health
Did you know that health is wealth. Most young people tend to not understand that. How long do you think that you will win at trading without health. You will fail as trading if your are sick, worried, tired or mentally disturbed. If you have any health problems then just stand aside. If you are ever not 100% just stand aside otherwise you will surly fail. Lack of total concentration will cause you to fail. Mistakes cost one thing - money.
Capital
Believe it or not capital is probably the least important for the four requirements to be a successful trader. Ever heard of the saying that a fool and his money are soon parted. That is especially true in trading. A fool can have money but without the right knowledge along with health and temperament he will soon lose it. Money can be earned but you can't do it in trading with out knowledge. So in summary to be successful in trading you must have the full knowledge to know and understand the markets and you need the health as well as temperament to play the game. Others reading this know they need knowledge and they subscribe to Traders World magazine. You have an archive of 73 issues of the magazine to help you develop your own successful style of trading that fits you.
Next Lesson
Your next lesson will come to you via email. Stay tuned.