Trading and how to trade

Millions of neophytes try their hand at the market casino each year, but most walk away a little poorer and a lot wiser, never reaching their full potential. The majority of those who fail have one thing in common – They haven’t mastered the basic skills needed to tilt the odds in their favor. However, if one takes the adequate time to learn them then they will be well on their way to increasing their odds of success.

World markets attract speculative capital like moths to a flame, with most throwing money at securities without understanding why prices move higher or lower. Instead, they chase hot tips, make binary bets and sit at the feet of gurus, letting them make buy and sell decisions that make no sense. A better path is to learn how to trade the markets with skill and authority.

Start with a self-examination that takes a close look at your relationship with money. Do you view life as a struggle, with hard effort required to earn each dollar? Do you believe personal magnetism will attract market wealth to you in the same way it does in other life pursuits? More ominously, have you lost money on a regular basis through other activities and hope the financial markets will treat you more kindly?

Whatever your belief system, the market is likely to reinforce that internal view over and over again through profits and losses. Hard work and charisma both support financial success, but losers in other walks of life are likely to turn into losers in the trading game. Don’t panic if this sounds like you. Instead, take the self-help route and learn about the relationship between money and self-worth.

Once you get your head on straight, you can embark on learning trading, starting with these five basic steps.