Successful Trading Tips

Nearly everyone has asked the question, how do I go about making a fortune? Most jobs will not get you to the promise land of being financially independent. So just what is the answer? You need to have your money work for you, but not in a simple savings account which pays you peanuts in interest.

An answer to the question

A great way to have your money work for you is to become proficient trading the various markets. This includes the stock market, and the commodities market. Many fortunes have been made by elite traders who have mastered the markets. The following are some trading tips or rules which are synonymous with success, and making fortunes.

Successful Trading Tips

1. Utilize a successful trading plan.It is important to be following a trading plan that has been proven over a long period of time. I also highly recommend the plan you implement fits your personality. Study the various trading plans of highly successful traders, and use the best one for you as a blueprint.

2. Implement solid money management.Keep your losses small. This is imperative if you are to be successful in the long run. The first half of the golden rule of trading states to cut your losses short.

3. Stay with the trades that are working. This means you do not exit a trade unless objective analysis tells you to do so. This is how enormous profits are made in the world of trading. This is the second half of the golden rule of trading, let your profits run. These first two trading tips are vitally important if you are to be successful, and possibly make a fortune.

4. Proper trading psychology is a major key. Human emotions such as fear, greed, and hope have destroyed many trading careers. Take emotion out of your trading, and it will greatly enhance your results. Understanding and implementing proper trading psychology is what separates the fairly good trader from the best in the world.

5. Expand your trading education. Acquiring proper trading knowledge takes a lot of time, until the accumulative effect of this knowledge takes solid root. Learn from the very best such as Jesse Livermore, William J. O'Neil, and Michael Covel. Read their books, study their methods and principles. Do not listen to trading tips from just anybody.

In summary

Trading is a very difficult business. It literally takes years of proper trading education to become an elite trader. Once you reach the elite level, the amount of money you can make is unlimited. Many fortunes have been made by the best traders in the world. The trading tips I presented in this article are an excellent starting point on your path to financial freedom.