Investing for your Retirement

Methods I Use to Help Me Become a Successful Trader

After trading futures for nearly 20 years, it seems to me a discretionary trader that has years of experience trading and that can control his/her emotions can do far better trading than any mechanical system. Granted, very few people have the experience, focus and emotional control to watch a number of markets every day, identify trading opportunities and act without emotion.

Some things that helped me move toward becoming a successful discretionary trader are: concentrating on no more than 4 or 5 markets; looking at monthly, weekly and daily charts each week while being aware of the developing fundamentals and psychology in the markets I'm following.

I write down what price levels and time period I feel offer a trading opportunity and review these each night. This helps with the problem of failing to put on trades due to fear, not paying attention, etc. It helps to keep an open mind and not waste time trying to predict exactly where and how far a market will move. Focus on possible opportunities and keeping losing trades small. Try to take money out of the market constantly. Don't try to make a killing on one move.

Focus on opportunities and when you sense a trend, go with it. Trade to win, don't be a perfectionist. Try to stay somewhat detached from a trade after you put it on. This helps keep emotions in check.

All discretionary traders are unique and must spend the time and effort necessary to develop their unique trading style to make consistent profits.