It’s a topic so essential to trading effectively, that 99% of the successful traders I train in my Mentor Program implement... yet, less than 5% of property investors utilise.
Yet – the property investors who do use this method are among the richest in Australia.
So, what is it?
What’s this missing link in the property investor’s arsenal?
It’s a written plan, and a documented system.
No... in your head isn’t ‘good enough’.
My own anecdotal observations would suggest that the vast majority of traders simply have no concept of what a trading system is.
Your trading system encapsulates your approach to the market.
It defines everything from your objectives as a trader to which markets and which time frames you will trade.
Your trading system is, in essence, your business plan.
It is imperative that as a trader you have a rules based approach to the market.
It is important to have rules to guide you as you trade for two reasons.
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Firstly there are no rules for trading imposed upon you the market has no rules for how you should trade.
Any rules you generate are your own as such they have to suit your objectives as a trader and your personal approach to the market.
Secondly having rules removes the emotion from investing.
Many traders have the wrong idea about trading, they assume that it is some testosterone driven environment where there is a lot of yelling and screaming each day is a confrontation that needs to be won.
Nothing could be further from the truth.
Trading is a calm, disciplined profession, the moment your emotions creep into trading you are lost.
Certainly the popular image of trading is one of a very boisterous environment, generally dominated by males.
This image is a false one but unfortunately, it infects the psyche of a trader and leads them towards failure.
It also acts a barrier to women who want to enter trading as a career.
Such a development is unfortunate because the available evidence suggests that women are better traders than men.
Traders must have a trading system, if you have no system you will fail.