Figure out the basics.
"As a trader, I have had the wonderful opportunity to trade stock, futures, options and cash markets around the world for over 30 years. I have also had the pleasure of exploring and sharing trading strategies with over 36 exchanges, four regulators and 450 institutions from over 35 countries. In addition, I have worked with institutional traders that trade a minimum of 20,000 contracts, $300 million in a cash market and a private trader trading one contract or 100 shares of stock.
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What I have learned from trading the markets for my own personal account, institutional or private traders is that there are basic elements common to every successful trader. The methodology of observing a market behavior, creating a trading strategy to match that market behavior, the determination of risk and profit management parameters and how a trader reacts to the result of a trading profit or loss that needs to be determined before a trade is made are essential for a successful trading career. If you do not have answers to these areas you should not trade.
The trader that has created the parameters for these elements is confident, comfortable and trades without hesitation. Take the time to seek the answers to these parameters for your own trading and I believe you are on the pathway to a successful trading career."
Dan Gramza is President of Gramza Capital Management Inc. and DMG Advisors, LLC. He provides daily market updates from around the globe on subjects ranging from the Nasdaq and currencies to crude oil and grains.