Before more novices get suckered in, here is some experience I would like to share with any guys wishing to become good traders, some advice I wish I knew when I started. (Please note this applies to traders not investors) 1) The secret to the market is that no-one knows whats going to happen to the market, people that say they do are liars. Its really easy to substantiate this as well, think about it, with a couple of billion rand flying around every day how could guys in Stanlib know what the guys in RMB will do next, how can RMB know what the overseas investors will do next, Overseas investors know what Investec is going to do next...they cant, they dont. The "smart" money makes just as many mistakes, look at Liberty with the 'pros' making over 3billion in losses in 1 year. Another case on this one is Richemont (CFR) major investors couldnt sell the share fast enough, only to buy it back at higher prices. 2) There is no conspiracy out there, bulls arent waiting and a certain corner, because there is no team bulls (except in rugby) similarly there is no team of bears. Its all a bunch of clowns in charge of too much money. 3) The markets are an absolute circus, mainly because its driven by emotion, but generally mean reversion corrects it back to (more or less) where it should be. 4) Technical analysis is used for probabilities, NOT guarantees. It uses past events to try and forecast a probability that something might happen in the future. Case and point we could see with some calls on the forum this week. When you go with the trend you increase your probability of the trade going right. 5) You dont have to be right to make money in the markets Garth MacKenzie a real professional trader who actually openly shows you his trades (on TV) is right between 30-50% of the time. That means that he is wrong MOST OF THE TIME, yet he still makes money. 6) Read "Trading in the Zone" it is considered the bible of trading It talks of the same principles 7) Stop listening to other peoples opinions, only take in advice from others that you trust but do your own research. Most of the time other peoples opinions will be wrong, and even if they were right because you dont know their system chances are you will make losses listening to them. 8) Stick to your stop losses, your rules and your discipline, no exceptions. If you internalize these thoughts and only these thoughts you are 90% ahead of the game.
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