Wednesday, June 13, 2012

The three elements to trading success

There are three compenents to effective performance as a trader:
  • Money management (risk control);
  • Self management (trading psychology);
  • System management (a historically proven, systematic method for entries and exits with a positive expectancy)
Trading is a bit like a three-legged bar stool, in that if one of these areas is missing or deficient, then you will not make money over the long-term - the bar stool will topple over.

My e-book, The Trading Triangle, covers all these areas and is a great introduction to trend following, the most consistently successful method of profiting from the markets.

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