Millionaire Traders

JWBK169-Lien July 3, 2007 13:56

Millionaire Traders

not do lunch. He does not putter about in his backyard during

market hours. He does not surf the net looking for gadgets to buy.

During every second of market hours Steven stares intently at the

screens carefully assessing the price action. He eats lightly, takes

no personal phone calls unless there is some sort of emergency

from his wife, and even tries to keep his bathroom breaks to a

minimum. It may seem like a monastic existence, but this is the

price of success. Just like any other endeavor worth doing well,

trading requires total dedication and complete commitment. The

hours may be short but they are intense.

Know the Reason to Get into the Trade and the

Reason to Get Out

Perhaps no other lesson is as valuable as this rule from Steven

Ickow. The biggest difference between professional and novice

traders is that professionals do not make random trades. They

don’t just go into a position because it “looks good” or “looks bad”

or because it “feels” cheap or dear. Winning traders always have a

crisp, clear and logical foundation for their trade. The reason may

be technical or fundamental in nature or it may rely on their ability

to read price flow on the tape. But they always know exactly why

they are in the trade and much more importantly at what point

(both profit and loss) they will get out. Trade your plan and plan

your trades may be an overused maxim in trading, but it is the

underlying truth of the game.