In this short video Brian Tracy reviews what he believes are the 7steps to success for anyone, no matter where you are currently in life.
Introduction
I heard some sayings some time ago and the more I think about them, the more I see them fitting a trader who has failed. One saying says: 'If you fail to plan you are planning to fail'. Next: 'Proper planning prevents poor performance' (5 P's). And then: 'Plan your work and work your plan'. Wow!
Therefore in my journey - From Virtual Trading to Reality, the more I implement what I now call the 'The BluePrints of a Successful Day Trader', I realized that it is impossible to succeed if a trader does not take the following actions...
Plan!
A trading plan could be very simple and short or very long and complicated. I prefer a simple plan with details. In developing a plan it is a good idea to state your trading goal and then write down what you need to do to accomplish that goal. Incidentally, those writings are sufficient to be your plan. Your plan to become a successful trader includes: become educated about the field of trading, practice trading, and master it. You should be able to simplify your plan so that you have a daily plan as you set out to accomplish your goal.
Work!
Once your plan is in place you must work it otherwise it is useless. To become a successful trader you must master your craft. This implies educating yourself; a lot of practice, more practice and then some more practice. Use the luxury of free virtual trading, and paper trade as if you are trading in a real account. Review your work and find out why some trades go bad as some will always do. Then improve and learn from your errors/mistakes.
Be Patient!
Once you turn on your computer to practice and later to trade in a real account you must avoid all distractions no matter how simple it may be. Stay focus as you seek candidates for trading. Wait for your favorite chart patterns and trade them only. Be focused as a laser beam especially when you are in a trade. You do not have to trade if the conditions for trading are not in your favor. Wait for another day!
Execute!
Like driving, many people get into an accident because of their indecision. Once you have determined you are going to make a trade, make the trade, period. When the trade is over then you can do the analysis that's necessary. Enter and exit the trade as per your predetermined plan. Absolutely no modifications during trading. Modifications are done when you review and analyze your work.
Be Disciplined!
Be disciplined can't be over emphasized. It includes focus, but it goes even further. Your emotions must be managed and have no part in a trade. Be very much aware of fear, greed and what you think. What you feel about a stock has nothing to do with your trade. You must only react to what your charts and indicators etc. are showing. Do not act on what you think but on what is.
Be Consistent!
Before you move on from one stage to the next you must first master that previous stage. Think about doing a long division Math problem. In order to do it, it is important that you can multiply and do subtraction. Once you master multiplying and subtracting then you can move on to dividing. The same can be said for trading. Master a strategy before your move to another. Then, after you mastered a strategy just keep on doing it until it becomes an automatic process to you. Do not change until it fails as it may because of the field you are in. It is good practice to quit trading once you have met your daily goals.
In summary many people like to make money and are intrigue by the stock market. They have heard many good stories about the stock market but have forgotten the many horror stories. What I have discerned is that many want-to-be traders fail because of lack of proper preparation to trade.
All the best and good luck in your trading!
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