The first law All Options Traders Need to Know

There are bold and aggressive traders, and there are older, more experienced ones. But rarely are there the old, experienced, and bold. The markets are unforgiving and the laws of the market are irrefutable. Most traders continue to challenge these laws, but very few succeed.

 

Law 1 - TRADE TO WIN

 

Trading to win is based upon the notion that trading is a journey in self-discovery and that trading as in life is about growth, courage and meeting challenges. It requires a commitment to excellence and the belief that learning is critical to success. As a trader you have to accept you will have losses and accept that losses are lessons and an expense of doing business; that failure is only feedback.

 

Traders who trade to win exhibit:

 

• Patience in waiting for the high probability trades

• Own their trading results

• Execute a repeatable trading blueprint.

 

Trading not to lose is based upon the notion that trading results must come easy and these traders are:

 

• Constantly look for the quick fix

• Driven by negative emotions like fear, greed, doubt, guilt and anger.

• Blame others and/or outside influences first and seldom look inside to identify issues that are negative

• Display erratic and illogical behaviors

• Looking for the easy win,

• Putting large positions at risk,

• Gambling by reneging on rules.

 

The trading to win trader is prepared to use a blueprint to systemically and repeatedly execute a proven approach. This strategy is intellectually and emotionally honest.

 

More laws to follow........