New York Traders Expo Interview #2

In this video we can see an interview with Stuart McPhee about why traders fail. Many people get into trading, they think they have a strategy, they focus on that, but a high percent of them don't make it into trading business. This may be due to a lack of a plan. He thinks that people are attracted to trading because they can make a lot of money, they focus on the first decision they make on a trading process and so they ignore other things. You need a complete trading plan which has three things, the mindset, the money management and the method. So many people focus on the method and they forget about money management or the mind set.

Many of them recognize that this is an important thing to do but they probably don't accept it as being such a vital part. Stuart's message is that to be successful in trading it does not matter who you are, you need to have a trading plan and that trading plan must suit you. Every successful trader has a plan. It suits for them, they use it every day, they implement it every day and they are very successful doing that. If you ask someone who fails if he has a trading plan he will say that he does not have one.

Stuart McPhee thinks that successful traders write a plan down before they get into the market and they have a clearly defined plan. You write some steps on a paper and you know that those are the steps you have to follow and if you will do this you will be successful. Your odds will be significantly increased. If you give that plan to someone else, there are chances that they would make money. Most of those who start don't have any plan. You start, you make decisions, you lose money and somewhere in this journey you realise that you really have to go back to the basics and have a plan.

You don't do this at the beginning, you think that you will be ok, you make decisions every day of your life and you think that your intuition is enough, but at some point you have to have a plan. There are people who are successful and they give up their plan. This happens because of the confidence which is so vital. The plan evolves, the market change, you adapt because you are very flexible but when you are successful confidence will make you give up your plan. Also, there are people who moved beyond their plan they ruined everything.

Submitted by YouTube Trader on Fri, 04/09/2010 - 22:09

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