Trading is a zero sum game.  It makes sense that if you lose, someone else is going to win and pocket your money.  Trading is a serious endeavor; however, some treat it more like a pastime or game.  Those that take the hobby approach will usually lose.

So how does one win in the stock market rather than fattening someone else’s bank account?  The answer is that you need to have an edge.  That advantage can be characterized as follows:

·         You must have a trading plan.  This is a business not a game and as such, you must have a detailed business plan on how you are going to operate your trading business.

·         You must have a system.  If you are random in your approach to trading, you will end up trading on whims and hunches.  The emotions of fear and greed will take center stage and you will make decisions that are fraught with anxiety and uncertainty.

·         You must learn all you can about how the market works.  This is your “playing field”.  When you learn about the intricacies of the marketplace, you will not only be able to “level the field”, but you will in fact be able to tilt it to your favor.

·         I suggest you have a trading partner(s) so that you can exchange ideas and scrutinize each other’s trades.  Trading partners can also be a marvelous resource of general trading information.  No two people see things the same and that is the purpose of a trading partner; they will point out aspects of the trade you may not have thought of.

·         You must develop the proper psychology for trading the stock market.  90% of your success will be tied up with how you deal with losses as well as wins.  I suggest that you attempt to cultivate a dispassionate approach to trading and remove the emotion.

·         Finally, you must be willing to do your own due diligence before placing a trade.  Don’t rely upon other to feed you trades.  You need to do your own homework.

                                    Best, Robin

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