I mentioned in a previous article that I have had the opportunity to sit in on more than my share of trading rooms.
Some were very good, some were...
ah...
erm...
not so good.
I am a strong believer in solid trading education, flawless execution of the technique you learned, and trying to keep your emotions from affecting your ability to read the chart you are trading.
I have come up with a list of things that I feel are essential for the average trader to fail.
1.
Make sure you listen to CNBC all day.
This station does provide adequate coverage of the market, but their analysis is often filled with glowing reports of wonderful things happening in the market, rumors circulating on the trading flow, and interviews with dubious guests.
I feel you will consistently get a wrong reading on the market watching the TV while you trade.
Turn the darn thing off, and keep it off.
2.
Make sure that you set up your trading space in the living room.
This way the kids, your wife, the telephone and any other distraction imaginable can keep you from truly concentrating on the chart you are trading.
If your broker calls, make sure you take all his advice because he has your best interests in mind.
3.
Pay close attention to what your friends, who are "non expert" traders have to say about the market.
Especially gold, because gold bugs are afflicted with the delusional belief that gold is going to rise to infinity and the rest of the world's paper money will become worthless.
Make sure you read the market chat boards for other dubious information to affect your trading.
Above, don't pay strict attention to the chart you are trading, look for outside influences to help you make your trading decisions.
4.
Make sure you save a ton of money and don't spend it on a trading course and mentoring program.
You can pick all you need to know from the daily periodicals that explain a variety of trading techniques in quick form.
Adapt those trading systems to meet your needs and trade them with a vengeance.
5.
Your common sense is your guide, and use common sense to trade.
Of course, we all know that common sense is your worst enemy in trading, along with your emotions.
But if a trade just "just feels right" go ahead and take it, you have a 50-50 change of winning.
Above all, don't study the intricate machinations the market goes through in pricing theory, it's all garbage.
6.
Don't spend anytime reading the great authors who wrote about trading.
Heck, what did Charles Dow, Ben Graham, John Murphy, along with present day authors like John Carter and Martin Pring know anyway? You can figure this stuff out for yourself.
7.
Skimp whenever possible to save trading costs and overhead.
You don't need one of those new fangled computers and fastest data feed possible.
No, go out and find the cheapest discount broker you can locate and sign up with him.
Your computer is good enough for trading, after all, it has always worked before.
Also, don't have a back up system to exit a trade if your computer goes down, it never happens.
8.
And finally, the best trades always occur when the trend changes.
So make it your objective to ascertain when the market is going to change direction.
There are scads of books out there that purport to have some special inside into helping you find this change this direction, buy all of these books you can.
You can make it big, whatever you do, don't trade with the trend, that's for the rinky-dink traders.
Of course, I am jesting about these practices, but I see these mistakes made on a daily basis.
There is no reason for you to make them.
Get a great trading education, execute it flawlessly, and enjoy your earnings.