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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posted:7/24/2011
language:English
pages:3