Trading-The Basics

Trading can be a highly lucrative profession, but what assets do successful traders have in common? Exactly what skills are necessary to perform the job well? It turns out the skills required to be a proficient trader are the same as those required to stand out in any field.
One needs to possess a thorough understanding and keen knowledge of the subject matter. A strong work ethic and self discipline are also necessary as you devote time to learning a new skill set. But ultimately, your desire to succeed will be your most valued asset.
The Green Cube Trading System describes the following three key fundamentals, all of which must be mastered by the successful trader:
• Knowledge of the material (trade tactics);
• Sound psychological base;
• Solid risk management strategy;
These fundamentals could be compared to the building blocks of a bicycle. The back wheel (knowledge) consists of trade tactics, technical analysis, reading charts, understanding of the index you are trading, prices, etc. The front wheel (risk management) consists of stop loss management, target design, runner management, risk & capital management, etc. Finally, the operator (trader) puts the wheels in motion. They must possess a sound psychological base, a strong sense of direction, good balance, discipline, patience and a strong work ethic. All three components are interdependent. Each must be mastered to ensure your success.

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