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Do It Right, Profits Will Come Naturally
By: Vance Wong
Articles (74) Profile

Many average traders out there do what they do just for the sole purpose of earning profits from the stock market. In reality, how many traders are actually making sustainable profits that will ultimately lead them to financial freedom? Not many, of course.

Most traders are happy with their small profits, hopefully enough to beat inflation, at the very least. Almost all of us wants to know the “secret” trading strategies of the world’s top investors, replicate them and succeed. However, this is where the problem lies.

We get so fixated in gathering all the strategies, with the sole purpose of getting profits. Little do we know that, success in investing and trading is about shifting our focus away from money, and on the actual activity.

This is where we can look at the advice from a local remisier from Phillip Capital, Collin Seow. He gave some valuable advice based on his nine years of experience as a remisier in his latest book, The Systematic Trader. Within the book, there are three interesting facts that traders should know.

Detach Yourself From Emotions

Getting involved with emotions when it comes to trading would almost always end up badly. When we get too emotional about losses or wins, fear or greed can get the better of us. Traders overwhelmed with emotions tend to make decisions without thinking thoroughly, often ending up in regret.

Collin feels that the more you are concerned with the money, chances are higher that you will make losses. It is impossible to predict how the market moves; even the top investors often make wrong predictions.

No Strategy Is Perfect

Trading strategies work very differently for everyone; no strategy is perfect for every trader. Many think that the top investors and traders are successful only because of their trading strategies.

The truth is, they are successful because they understand how their strategies work well for them. One simple way to look at it is knowing that the top investors actually have quite different portfolios from one another. However, the thing most of them have in common is, sticking to one strategy, for a very long time.

Stick To One Strategy, Fine Tune It

Strategies can never be perfect, especially when stock markets are so volatile and any breaking news can turn the economy into chaos. That is why traders should stick to one strategy and tweak it accordingly to account for sudden and unexpected circumstances.

Grow with your strategy, learn from losses and fine tune it. Top investors can give you the best strategies but it would not work for you if you do not tailor it to suit your own trading personality.

Takeaway

Trading is not about being right all the time, it is about capitalising on the times you are right and cutting out your losses when you are wrong. Keep your emotions out of your trades, devise a strategy, stick to it.

Collin’s quote in his book highlights this very well: “When entering a trade, instead of asking how much you can win, ask yourself how much you can afford to lose.”

Collin Seow is holding a three-hour course on 5 August 2015 (Wednesday). He will be talking about how he paid off a $250,000 debt with a systematic trading strategy.

Collin eventually developed a software programme to systemise his trades for him, which would also be shared during the course. Attendees will be given a free copy of his book The Systematic Trader.

With a Communications background, Vance has the passion to write with a purpose - to provide content supported with substantial evidence to vested readers.

Please click here for more information about this author.


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