Developing_a_Successful_Trading_Strategy

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					Title:
Developing a Successful Trading Strategy

Word Count:
1002

Summary:
Mr. Markus Heitkoetter, the trading expert, talks about the factors that
affect your profit in day trading and how to guide them to your
advantage.


Keywords:
Day trading Strategy, day trading strategies, Trading Strategy


Article Body:
Anyone who knows anything about stock trading or day trading has heard
the term „trading strategy.‟ A trading strategy is a simple concept –
it‟s basically the roadmap that a trader follows while trading the
markets. A trading strategy is governed by a set of rules that do not
deviate for anything other than market action. Faithfully following a
sound trading strategy will provide you with your greatest weapon against
your worst enemy – your emotions. With a trading strategy, you‟ll know
exactly when to buy and when to sell, regardless of what the market does
or what your emotions are telling you.

About Day Trading Strategies
Every profitable trader will tell you that the key to trading success is
an effective, reliable trading strategy. You, as a trader, need to
identify a winning system, implement it, and have the discipline to stick
to it. Though it would be possible for you to develop a unique trading
strategy, it probably wouldn‟t be that practical. The best – and most
efficient – approach would be to adopt an existing strategy, one which
has been used by other traders in the industry and which has already
proven to be successful.

Just remember, whether the strategy you‟re using is your own or someone
else‟s, it is critical that you have a thorough understanding of it,
especially its entry and exit signals. Do not fall prey to the pitfalls
of following untested trading “advice,” especially the free advice
available in numerous trading forums and chat rooms. Advice that you
receive in these types of venues is likely to be opinion rather than
fact, and in the market, opinions are not worth anything. What you NEED
is a proven and effective trading strategy, one that will work in any
market, under any market condition.

Because of this need for solid strategies, more and more traders are
looking for trading success through technical approaches to the markets.
One of these approaches is Welles Wilder‟s RSI indicator. The general
idea behind using the RSI is to buy when the RSI crosses above 30 and to
sell when the RSI crosses below 70. As you can see, these rules are
clearly defined and don‟t leave much room for interpretation. This is
EXACTLY what you want from a trading strategy. In trading, you‟ll need
to make big decisions in mere seconds. There‟s simply no time to
rethink, or try to interpret the unknown signals and information that
come your way. Following a set of simple, easy-to-understand rules – and
having a trading strategy that regulates all of your signals and
indicators efficiently – is the major key to trading success.

Though the rules of trading are very important, they are not the most
essential element of trading success. The most essential element is YOU.
The best trading strategy in the world will be useless if you lose your
head in the market and panic. You need to remain calm at all times,
executing your trading strategy efficiently, without hesitation.

How to Find a Good <a
href="http://www.rockwelltrading.com/daytradingcoach/01_dtc_moreinfo.html
#STRATEGIES"><b>Day Trading Strategy</b></a>
So, you‟re convinced that trading strategies are important. Now, how do
you find one that works for you? Obviously, day trading strategies don‟t
grow on trees. You‟ll need to do some research and either develop a
strategy yourself, or find one that is easy to understand and has been
proven to be successful. Take your time and do your research. Your
strategy is an important step towards financial success, and it‟s more
than worth the investment of time and energy. There are plenty of books
and helpful websites to guide you along your way.

Also, be on the lookout for scams. There are a lot of “educational
companies” out there, each selling their own trading systems and
strategies, and each claiming that their system works better than their
competitors‟. Be wary of these companies. Don‟t fall into the trap of
believing that you can buy a solid trading strategy for $97 and then make
thousands in a short period of time. This is a lie.

More recently, some of the “educational companies” mentioned above
started offering “free local workshops” in nice hotels. These free
workshops, which are typically advertised in late night infomercials, are
another danger sign. Most of them are merely a sales pitch for the
company‟s actual product, and the learning that takes place at the
“workshop” is minimal. You‟d be better off spending that time
researching the trading market on your own.

To avoid scam artists and faulty systems and strategies, you need to
educate yourself. Your trading education should focus on exploring and
familiarizing yourself with several different strategies; these ought to
teach you to take advantage of price direction. You won‟t be able to get
a solid education after reading only one book or watching a single 60-
minute webinar on the Internet. True education takes more time and
effort than that.

Fortunately, there are many ways to get a good trading education these
days, and your best source of trading information and research is online.

Education and training play a vital role in the molding of a successful
trader. If you want to be profitable in the trading market, you
shouldn‟t be cheap when it comes to high-quality trading education. Find
a company that has a proven track record. Check the Better Business
Bureau (BBB) to learn about their reputation. Research the internet for
company information, especially handy sites like www.ripoffreport.com and
www.badbusinessbureau.com.

Get Researching So You Can Get Trading!
<a href="http://www.rockwelltrading.com/"><b>Day trading</b></a> is a
very risky venture if you have limited knowledge, weak discipline, and/or
poor money management. However, if you approach day trading correctly,
armed with extensive knowledge, a sound strategy, and the drive to
succeed, it can become one of the most lucrative business ventures you‟ve
ever embarked upon!

				
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