In trading and investment most beginners tend to believe there is a great secret that will bring them success. Thus, begins that search for The great secret (Holy Grail). They try different systems, strategies, indicators. This costs most of the time and money, and in the end disappoints many of them quit. Most people tend to do what the rest of the people do, or in other words, to follow the flock. Van Tharp argues that investors and traders who enjoy constant success and live out of it, think independently and do not seek advice or opinions from others. He says that money is done by developing their own ideas and respecting a method that suits each individual. Markets do not create victims. Traders become victims by their own responsibility, as each controls his/her own "destiny". Most market professionals gain success by controlling the risk. Strong self-control is needed to maintain the risk unde a certain level at all times. The majority of successful speculators have earnings rates between 35 and 50%. They are not winners because they predict the correct prices. They are successful because their profits are higher than their the losses. And this requires a strong self-control. Most conservative successful investors do what most people are afraid to do. They are patient and willing to wait for the right opportunity. This also requires strong self-control. In trading, psychology, money management (position sizing), trading system and the plan are of great importance. Most people direct their attention to the trading system and its development, but more and more traders express that in trading the importance of the three elements is divided as follows: psychology 60%, money management 30%, system 10%.
MONTHLY YIELD | ||
---|---|---|
January 2025 | ||
Procent + | Procent - | Total |
17.26 | 6.00 | 11.26 |
December 2024 | ||
Procent + | Procent - | Total |
28.69 | 3.54 | 25.15 |
November 2024 | ||
Procent + | Procent - | Total |
30.78 | 1.25 | 29.53 |
TOTAL | 65.94 |