There are two points of self assessment that still stand up: tolerance to risk and the amount of time, because both of them will dictate what type of trading system you end up trading and also the market you will end up trading. At this point you should have started to answer this question in your mind: how will you take profit from the market, how much time can you devote to do it and how much risk are you comfortable with.
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.
In this video Stuart McPhee talks about your primary goal as a trader. He is suggesting that making money is not the most important aim. There is actually something more important. And the more important thing than making money is preserving the money that you already have. Protecting the money that you have has to be yours most important aim. Of course, making money is important. He was sometime asked what is his best advice for a trader. He said that is easy: "Do not get out!"
In this video, Stuart McPhee makes a description for his website, trading-plan.com. As you can see looking at the name, the main message is having a trading plan. Stuart can assure you that all successfully traders have a trading plan, they follow it and they do this with a lot of confidence. When you start, it is not quite easy to have a trading plan and implement it that is why his website is here - to help you. The website has over 250 pages of content.
In this video Stuart McPhee talks about Trading in a Nutshell, 3rd Edition, which has been released following the solid success of the previous two editions (released in 2001 and 2005). Trading in a Nutshell just come out in 2008. There are seven years from the first edition and Stuart is the first to admit how much he learned himself about the market during this period and so he put information he achieved in this book. He hopes readers will enjoy it.
Key message: Have a Trading Plan!
In this video, Stuart McPhee talks about choosing the best trading method. He says that things are moving so fast nowadays that we cannot see a changing sometime. For this reason, he thinks that there are several people that should be excluded from trading certain styles. Lets say we start trading to make some money. There are different styles of investing, short-term or long-term investors, but many people prefer short-term because that means getting money quicker. So that's why people trading - to make money.