3 M's of Successful Trading
In the last Article
, we had seen an Introduction to trading . In this section we will see
what are the 3 M's of Successful Trading as per Dr Alexander Elder .I will give brief introduction of each of it , Its your responsibility to take it further and learn it in detail . take this as just a starting point .
The 3 M's are :
- MIND
- METHOD
- MONEY
MIND
This part of Trading is most important . It deals with Psychology . When one enters Trading business , he/she has some beliefs about the environment , about markets . They have to understand the importance of Discipline , How people think , how greed and fear affects investors . There are sub-parts to this
- Individual psychology of traders : You have to understand how to control Fear and Greed . How you should take rational decisions and not fall pray to your emotions while trading .
- Mass psychology of the markets : You also have to understand how mass psychology works . Why most of the people do what they do .
- The rules for maintaining personal discipline : You also have to understand the importance of Self Discipline , why you must be always consistent with your trading . You must never violate your rules . because in long run your discipline in one thing which will make you most money , not your knowledge or your skills .
Read full article at : http://www.jagoinvestor.com/2009/04/3-ms-of-successful-trading.html
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