| 3 Important Stock Trading Basics | | | | trading not based on tips, hunches, visions or dreams. |
| Trading offers an opportunity to create good cash | | | | You must develop a personalised trading plan. |
| flow, once you have developed your mindset | | | | Without a trading plan, you are setting yourself up |
| sufficiently and 'learned the rules of the trade'. Also, | | | | for failure. It is not only important to have a trading |
| trading may involve heavy losses, which must be | | | | plan but most importantly, you have to be disciplined |
| minimised with a strong development of your | | | | and stick to your trading plan! |
| mindset. | | | | 3. Money Management - This is possibly the most |
| To become a successful trader in the stock market, | | | | important factor in trading. The first goal of money |
| you must possess what I call the three 'M's. | | | | management is survival. You need to avoid risk that |
| 1. Mind - A disciplined mind is an absolute requirement | | | | can put you out of business. The second goal is to |
| for successful trading. Managed to conquer the devils | | | | earn a steady return and the third is to improve on |
| of greed and fear is going to enable you to become | | | | the 2nd. |
| a successful trader. Learn to manage your emotions. | | | | You need to remember that trading in the correct |
| Don't ignore change in mass psychology. Trade less | | | | way, with the 3 'M's in mind will make you money. If |
| often. Trading is deceptively easy. Goal is to trade | | | | your target is just to earn money instead of trading |
| well and not to make money! If you trade well, you | | | | in the proper way, this may lead to the loss of a |
| will make money. | | | | huge sum of money. |
| 2. Method - There must be a plan or methodology to | | | | |