LEARN the legendary traders!

What separates the best traders of the world from the average investor?

Can the average investor to examine the success stories of the legendary traders and they use the system?

What is common in the actions of the most famous traders, than can take an average talented trader?

Before you will find answers to these questions, let's look at some of the most successful of the legendary traders:

- Nicolas Darvas turned 36.000 $ 2.000.000 $ in 18 months!

- Ed Seikota of $ 5.000 received $ 15.000.000 12 years!

- Jesse Livermore made a multimillion state in early 1900

- Richard Dennis made from 100 up to $ 200 million

- George Soros, is believed to be one of the greatest traders of all time!

The results are quite impressive and this list would be easy to add some other prominent traders. So why do they have such brilliant results?

There are several common factors that are observed in the majority of successful traders:

- They have a system, which they strictly follow.

- Most of them has a trading style of following the trend.

- Most of them have medium-and long-term approach.

- They are neither fear nor greed.

- They have absolute discipline and a 100% follow their system.

- Their Trade is fully laid out, they were prepared for all scenarios in advance.

- They know that the system goes through bad times and good times. They cut losses as soon as possible and give the profits to grow.

- Their system suits their individuality.

Some of these points sound logical and, most likely, many of them agree. But in reality the average investor behaves differently. Some of them have "burned their fingers" over the past three years, and some even lost the state. Here are some examples of observed behaviors:

- On time is not reduced by losses.

- Short-term investments perederzhivayutsya in the hope of lifting prices.

- People are listening to advice from their investment brokers and analysts.

- People invest in hot stocks recommended by friends of friends.

- People do not have any plan about their investments.

- Capital management in any way is not considered.

- People use trading styles that do not match their personality.

- They are filled with greed and fear.

What can the average investor learn from a talented above and how to avoid these mistakes? Here are some useful points that can be gleaned from some of the most successful traders:

- Every investor has his own personality. Some investors have a very aggressive trading style and trade very often. Some prefer the action, because other bear more risk and investing in options. Others want to spend a minimum of effort.

Investors must understand their profile and choose the style that fits his personality.

- Trade should be fully planned in advance. People planning to many of their actions, such as leave travel, relocation, etc. But whether they have a plan when investing?

The investor must have a system that will help him be prepared for all scenarios of trade. You need to know in advance when to buy, how much to buy, when to exit. As is trading, the price of the instrument (share, option, currency, etc.) can not be influenced by normal private investor.

- The most important component of the trading system is money management? Surprised? Many investors and traders spend most of their time developing a very complex system of entry into the trade. But the entry strategy contributes only about 15% in the success of trading system based on academic studies.

The most important issue trading system - is how much to invest and how many positions to keep any one time.

- For a successful trade is the ratio "can do." 99% of the world's population is likely to have a dream to be financially independent, but only 5% achieved this. Why? Because with phrases like "... it would be cool, but I can not ..." or "... perhaps one day I win the lottery, but so far I have to work hard ..." they have already lost.

Tom Meier

Larry Williams: Training - important in trading and running

Larry Williams: Training - important in trading and running

Trader and marathon runner Larry Williams (Larry Williams) draws parallels between a successful trading and a successful run in marathons. Williams, recently for the sixteenth time successfully run a marathon, points to the "pain and suffering" as the two most obvious points of similarity between trading and running long distance. "Anyone can run a marathon after training. The same applies to commodity trading - if you train well, then you can hope for success ", - he said. "At every race there is a point where you feel disgusting, but you have to run forward and put one foot ahead of another. Same in trading. We must do their transactions in one after another - says Williams. - When I come to a point at a distance, then I gradually slows the pace. Similarly, with trading: when I lose the market, I step aside and take a breath. "

Williams engaged in stock trading in the early 60's. But ten years later by a friend advised him to pay attention to the commodity markets, because, according to him, Williams could they "acquire more". And he actually "boiled" decently. In 1987, in a worldwide 12-month tournament traders Robins World Cup Trading Championship, he was able to make 10 000 dollars 1.1 million dollars - an achievement which has not yet been able to beat any one trader. Williams calls himself a "context-trader" using a mixture of techniques and basic concepts. Currently, he is trading for himself, doing mostly futures on Treasury bond futures S & P 500 and currency futures, working within one to three days.

When he was asked about the status of currency futures markets, Williams said: "I do not think that currency die. Markets always go through the stages. What upset the funds, so that is what their program of tracking trends have not worked (as of currency in recent years have become more stable).

Williams is a pioneer in the application of pulsed LED% R. "I was impressed by the work that one man has done with stochastics, - he said. - I like the idea, but stochastics seemed too confusing and hard to understand. Indicator% R, as described in "Technical analysis of futures markets," John J. Murphy, "is based on a similar (with stochastically) the concept of measuring the last closing price in relation to the price range along a certain number of days. Today's price at the closing will be deducted from the price high in the range specified number of days, and this difference is divided by the full range of prices for a given period. "The price at the close near the highs, within the range, means that there is a strong buying, - explains Williams. - Top of the market - when they reach the highs in the close, while the bottom of markets - when they close at lowest point. Markets reach the top, because buyers no longer remains. % R allows you to see it. " At the same time, he said, the gun should be used in the overall context of the market.

"Technical indicators - not the alpha and omega, as seems certain techniques" - according to Williams. Another indicator that likes to use in my trading, Williams, are these "commitments of traders» (Commitments of Traders), published every second Friday of the CFTC. This report provides statistics on open contracts of large hedgers, large speculators and small traders. "When large hedgers are moving from net long position to a net short, it's usually a good signal to buy" - said Williams.

In the current market conditions, said Williams, "bonds come close to low. Large hedgers are suitable to make a clean take a long position, and this is quite bullish indicator. Moreover, they have accumulated a lot of currency. But they will take a long time to go up. " Regarding the stock market: "I - short-term traders in the market S & P. But the most intelligent of my friends for a long time are in short position in this market. "

What Williams thought about trading? "What I like about this business is the ability to think ahead of time. Most people live in the present. But the trader has to think: but will the rain in six months? Will one year war? Will there be famine after two years? This is an interesting place to live - we are all in the future ", - he said. According to him, trading entails considerable emotional burden. "These markets are huge swings, which lead to huge emotional swing. This may cause traders manic-depressive psychosis. Your life becomes like a stock market patterns. After 34 years of my life is full of high peaks and falls. Almost all commodity traders, whom I know very fast something to rejoice, and very quickly from something cool. " How he copes with this? "I run" - was the answer.

It should also be understood that "although we are doing serious things, it's still a game ... life is not limited to this."

Council Williams novice traders? "Start slowly. Spend much time and money for training, because education is cheap in comparison with the experience in this business. Those who learned more rest, achieved the greatest success in these markets. "

Also, "more learn to manage money. Just have a goal not enough. You could be missing a crucial step that needs to be done ... cut spending and do not limit earnings "- repeated the old adage Williams, bytuyuschuyu market. "Looking at all these years, I can say that this is a difficult lifestyle. He is burdened, but I would not for that he was not traded, "- he said in conclusion.