The Seven Secrets of the Highly Successful Trader! - 2) HAVE A SYSTEM THAT FITS YOU

Every successful trader, investor, money manager, etc. has a system that perfectly fits his or her ideals and personality as an investor. The system really doesn't matter, it's secondary. Value investors like Warren Buffet have made millions with their value approach. Day traders have made millions with their system. I have colleagues who have made millions with momentum investing. So it can't be the system per se. Instead, it's the fact that those winning traders have discovered and developed the system that fits them best. If you are a very worrisome person who absolutely cannot take losses without getting ulcers then I would not suggest day trading as part of your system. On the other hand, some investors would go crazy if they had to buy a stock and hold on to it for a year or two. So how do you find a system that works for you? You have to work backwards by discovering what your objectives are. What annual rate of return are you looking for? Do you want to trade full time or just leisurely? Would you get stressed with daily gains and daily losses? Are you extremely patient with your investments? Do you need to make lots of decisions? Which trading systems do you know and feel comfortable with? How much research have you done? There are so many questions to ask yourself because it is absolutely vital that you choose a system that really works for you. If you are not comfortable with your system then you will always be tempted to break your rules. Your health will likely suffer as much as your portfolio.