Learning the best stock trading or investing methods is still insufficient. One has to take personal actions with systematic strategy, aligning to own personality. Ein55 graduates learned from Mentor James Hon on PA course #4: Personal Action. Here are the key learning points:
1) Alexander Elder: Beginners focus on analysis. Professionals operate in a three dimensional space: Sound Psychology, Logical Trading System & Effective Risk Management Plan.
2) Apply Systematic Approach: Professional Traders condition themselves to avoid acting emotionally in situations that raise their stress when they need to stay calm.
3) Good Trader Behavior:
– Find the System that suits me.
– Understand the System’s statistical edge through experience.
– Experience develops confidence [endurable].
– Confidence assures discipline [persistence].
– Discipline is the Holy Grail.
4) It is to look inward to understand who you are:
– Are you a Trader? Are you an Investor?
– To find a system to match your personality.
– To understand your risk tolerance so you will trade with a calm state of mind – your ability to manage your emotions, aka, be detached.
– To develop your personal trading plan with proper risk and money management.
– To develop your enduring confidence in your own system that you will follow consistently.
5) Take Action now: No journey of 1000 miles can be made without the small steps ; no river or sea can be formed without the streams.
For general public, you may learn from Dr Tee on applications of PA (Personal Action of Buy, Hold, Sell, Wait, Shorting) in stock market, registering 4hr free stock investment course: www.ein55.com
