A good trader learns & applies two simple principles in the market. First is the technical understanding, that there is always a reason for the price movement & every position has to be linked to the trader’s interpretation of this reason.

Second is the focus on managing capital. A trader understands that money is made when capital is deployed in the best trades & when it is churned several times.

The investors who look for surefire ways of making money through trading are clearly unrealistic in their expectations. They should be willing to put  in the years that are needed to hone trading skills. This is tougher than most people would like to believe.

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