What makes a better trader?

Learning to Trade is Hard...So what makes a Better Trader?

2 weeks ago I received a chat message from one, who was aspiring to become a trader. I encouraged him to start learning. And he started getting overjoyed with Bitcoins and the big possibility of gains he can possibly have. Yesterday he sent me another message saying:

Trading Field is like a dream that will never come true...wasted my 16 years on education...not able to devote time...I don't want to trade stocks.

Hello Jerome! Please have a look, what I created.

And I want to let you know something,
Yes, I am interested in this field of trading, as very interested, but I am struggling with learning because this field takes time and dedication, It definitely should be because it is a different field, a lot of competition out there, it seems like competing with them is a lot difficult.

I must say that the trading field is like a dream that will never come true,
because there is my family who depend on me, I have already wasted my 16 years on education, now my father is retired I am married too. so there are lot of responsibilities on me, i am not able to devote time to this field that's why i don't want to trade stocks, i heard people lose money there so i am not even able to take risks right now because i know that I will lose. because I haven't learned much.

But yes, I understand a lot of things in trading and now I can write some content. and able to do social media marketing in this field
So that is what, I wanted to share with you.
.

And please watch this video and let me know how it is.

Thank you very much

Cheers.

He created the a video out of the context I told him that Learning to Trade is Hard.
And here is his entry:

Learning to trade is hard...

So what makes a Better Trader?

Someone who had grit and determination
Someone who focuses on Long Term and isn't focus on the short term wins.

Learning to trade is hard
From Technical Charting to Fundamental Analysis of Stock
To finding a Guru or Forum that you can follow in order not to lose money.

But what if you could learn trading the easy way,

Without headache and without losing your hard earned money?

NOW YOU CAN WITH...
ACCELOTRADE.COM
(Peek. Practice. Play)

Just Peek, Practice and Play with other traders,
Artificial Intelligence or your invited guests
in a chess-like trading game.

Simple! NO books, No Guru, No forum and No headaches.

Start Accelotrading Today
Be a better trader tomorrow.

************ MY RESPONSE TO HIS MESSAGE****************

Hello my friend,

I like the video that you made. I will be commenting on each of those entries, but before doing so, I'd like to send you this message first, so that way you can be clarified.

So what makes a better trader?

This question is not answered on the next 2 lines you made.

You answered:

Someone who has grit and determination

Someone who focuses on Long Term and isn't focus on the short term wins

Determination is not enough to be a good trader. Time frame is not enough either.

If you think it's hard, you are right. And If you think it's simple you are also right.

Either way, you are right. If you think that education is a waste of time then it is. Because you made a decision to be what it is. And if you think you have no time to devote on something, then yes indeed. That is because you already made up also your mind to be that way.

So what makes a good trader?

What makes a good trader is his mind set.

Trading is an art and passion which can only be delivered with dedication and discipline. Dedication and Discipline happens only to guys who's mental toughness exceeds more than his feelings and emotions.

Trading is also finding your domain  of comfort. He has to choose which timeframe he is able to make a wise decision without being influenced by fear or greed or outside influence. Some are comfortable of pulling in and out at 1min trade, others are comfortable by the hour, others are pretty good at swinging on days but there are those wise guys too who excel in amassing multiple baggers of homeruns in long hauls. You have to choose which one. You cannot be expert on all time frames. If you have work on the side, you can maintain your work on the side and just use trading as a means to amass wealth in long hauls. 

How do you do such thing when you are tied with current work and duties that keep you busy? 

The Criteria:

It is simple.

You concentrate on 4 fundamental Criteria of choosing a company to place your money:

1. a company that emerge to leadership
2. a company with good management
3. a company with increasing revenue and sales without debts
4. a company with product that flies 

When you have these fundamentals, the technical chart is just your reference where you can possibly best position yourself. That is why I do not go with Forex or Bitcoins because they do not operate by fundamentals. Most of the time it is pure technical and plays of emotions. But if you master it, then you may do so. For those who want to continue their work and wants to make money by using their saved money, then go with the long hauls.

The Strategy:

Mark Minervini is one of the Stock Market Wizard and he advocated the use of some principles in selecting his stock. These are some of his principal points he used in what he termed SEPA Strategy. SEPA Strategy has 5 key elements to consider:

1. TREND. Super performance stocks can be identified with the definite price uptrend.
2. Fundamentals which I just discussed earlier. In the early stage the earnings and sales are on the table. Then in the Super performance phase the earnings, revenue and margins improved.
3. Catalyst. Every super performance is ignited with catalyst behind it like new product development, new drug approval, which makes investors excited and drive the interest of Institutions.
4. Entry Points. Timing the entry is very important, otherwise you get stopped out or else considerably miss a turn.
5. Exit Points. Always consider profit. Identifying the end of the run is the key in order to keep what you made.

The Template:

Now this is the Trend Template he used to qualify stocks to fall into the trend he is looking for. These are the criteria that you can pick on a chart for a Super performance stock:

1. Price is above 150SMA and 200SMA(Simple moving average)
2. 150SMA is above 200SMA
3. 200SMA is trending up for at least 1 month (preferably 4-5months)
4. Price is above 50SMA
5. Price is 30% or more above 52Week Low
6. Price is 25% or less its 52Week High
7. RSI(14) > 70 (80 or 90 is preferable)

The Chess Master and a Businessman:

If you are able to pin-point these in a stock then you basically have selected Bishops, Queens, Horses, Towers to move your money in working hard for you. You become the Chess Master. Alas, not all would become good, there are those also that might become pawns, thus, you need to establish discipline of disposing losing stock and never hold on to it believing it will come back. The fundamentals and technical will speak them for you. This is also where you need to establish up to what percentage are you comfortable of losing money based from your entry? 10%, 20%, 30%, 50%? Warren Buffet mentioned once, if you are not prepared to lose 50% of your investment, then you are not an investor. You do not need to be like Warren, that is why you need to choose which percentage are you comfortable with. If you are comfortable with 7%. Then go establish that discipline of really selling that losing position. Be comfortable with it. But if you really choose well in the beginning the right companies, then you are way to go in succeeding. It is like hiring the best employees for your own company. That is why trading is not gambling. It is a business. You are therefore a businessman. Treat it that way and you will succeed. Then even while you sleep and work your normal job, your money will continue to work for you. 

The Golden Rule...Richest Man in Babylon 

The golden rule of the "Richest man in Babylon", always keep 10% of your earnings. Spend whatever you want with the 90% but pay the 10% for yourself. Now this 10% you keep is what you will use to feed to those companies you have chosen to make more money for you. Practice this consistently while you are young then in your old age, you will have heck of a hefty rewards for your retirement. If you are turning towards the golden age. It is never too late if you set your mind to achieve something. Start peeking, practicing and playing with virtual money first in a chess-like trading game like accelotrade. When you feel you are ready, get those 10% you save and trade. But start something, visit accelotrade.com

Keeping that 10% takes discipline as well. So in the end, we go back to the same question. 

What makes a better trader? 

It's the mind set of one that makes him a better trader, a wise investor, a savvy business man, a chess master and a disciplined Wizard.