PSYCHOLOGY OF FULL TIME MILLIONAIRE TRADERS

PSYCHOLOGY OF FULL TIME MILLIONAIRE TRADERS

Dan Allen

This post will feature the psychology behind Millionaire Traders Don Allen and Rob Booker, the psychology behind trading successfully for a living.

If you see something in the price action of a stock that raised concern, liquidate the position.

Holding a handful of positions with good fundamentals (avoid stocks that have debt.), these situations are less likely to crash. Dan uses an interesting technique, looking for stocks with positive fundamentals but a negative movement in price. He claims people are selling through fear, the price should be going up but instead it’s declining so I’m getting out. This provides a buying opportunity, good companies rise again with good fundamentals.

In regards to mentors Dan stressed attending the Traders Expo in Las Vegas, where you can network with many full time traders & top authors. By the way the next show is Nov. 16-18, 2016 and you can register at lasvegastradersexpo.com.

Dan feels most traders fail to believe that high consistent returns are possible, if you don’t think it’s possible you’ll never achieve it.  Don’t be so concerned with being right, focus on making money and deal with being wrong. The sole purpose of trading is making money, not being right.

 

ROB BOOKER

A full time trader who considers himself a full time back tester. Through test, if his system doesn’t prove to work then there’s no sense in trading it with real money. This millionaire trade made countless mistakes in the beginning including, making too many trades, risking high levels in his account (5-10% of account, trading different systems at the same time, trading at all times of the day, trading both long term and short term, educating himself on systems instead of learning discipline.

It took Rob eleven months to get things right. Constantly testing and developing his own systems endlessly, which included a demo account and a small live account. Like most successful people in business, Rob made a definitive decision to make it work.

So what’s the secret? Grind out regular profits on a regular basis, the goal was not to hit the jackpot like most losing traders but to be consistent week after week protecting your working capital.

 

A successful businessman/friend of Rob’s once serious told him “you’ve convinced yourself that making money is difficult”, he went on to say “making money is easy, keeping it is difficult”. The ability to hold onto profits and not to overtrade or increase your trade sizes beyond your risk level.

A pattern is revealed upon reading on those who crack the mold in very difficult platforms to succeed in. One very common attribute I’ve noticed, they a contrarian approach on how they do things. Rob does not have a dollar goal like most traders (per week etc…) he feels this takes away the focus of what the market can give you, instead puts a dangerous emphasis on what the you want the market can give you. As a trader if your goal is to make 100.00 per day but the trade you’re in can only give you 50.00 you may find yourself chasing or making additional trades without proper analysis.

An additional fine tuned attribute is NEVER to compete with anyone, if John Smith just made $1,000 in 10 minutes good for him! So again as Rob continues to emphasize that making money as a trader is to grind out profits regularly, and place much focus on consistency, not concentrating on winning the lottery.

Specialize in something, something you’re good at and feel comfortable with, don’t go astray from your strength. If you’re a short trader stay focused on shorting, same with long trading, if that’s your specialty. The fear of “missing out” gets many traders into trouble, and will make traders trade out of desire to make money, always back test and use proper analysis.

Rob goes on to say it’s important to have the complete package to become a successful trader, remember it’s been said often over 90% lose, so this should paint a clear picture.  It’s about where you enter, exit, money management, and discipline. Learn it all, be a complete trader with the traits to succeed, and NEVER trade without testing first.

Trading is a game of survival, if you make a mistake get out. Always trade defensively and protect your capital and grind out consistent profits. Keep in mind if you trade with funds you can afford to lose, then it suggests you’re trading with money that’s not so important to protect.

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