Trade Stages - The Trade Path

	Gieno  Trade Stages - The Trade Path
	STARTS OFF “greed orientated.” Loses because: 1 Market problems Not a zero sum game, a “very negative” sum game Market psychology – doing the wrong thing at the wrong time The majority is always wrong Market exists on chaos and confusion 2 Own problems Overtrading No knowledgec No discipline No protection against market psychology Random action through uncertainty, broker’s advice for example Market views. RESULT: the “greed orientated” trader gets a good kicking and becomes “fear orientated.” Loses because: 1 Market problems as above 2 Scared money never wins 3 Own problems Still overtrading – derivatives Fear brings on what it fears Tries to cut losses too tight creating more losses Still no real understanding of what it takes. RESULT: Traders who persevere “travel through the tunnel” and becomes “risk orientated.” This is when they start to make money because they: 1 Develop a methodology which give them an edge 2 Use an effective Money Management system 3 Develop the discipline to follow their methodology 4 Erase “harmful” personality traits