There are two type of traders in the market: the SHEEP & the TIGER.

Sheep traders are about 90% of the total traders in the market. The trade based on news, instinct, tips and research report. They do not have a trading system and always trade without a plan. They are always on the losing end.

Tiger traders are professional traders. They are also known as the “smart money” because the market is actually created for them to make money. They know how’s the sheep will react to the market and always have the edge to see the whole market condition (who are buying, who are selling and how much). Tiger traders have a trading plan and system. They’ll have an edge over the others who don’t. That why Tigers will always have the Sheep as meal!

So..do you want to be Tiger or Sheep????? I’m sure the answer is Tiger. But you CAN’T. Because these are professional traders with very big financial support behind, usually the market makers or syndicate traders. However, you can think like them and trade like them.

You must have PLAN.

TRADING PLAN must have the following:

1. Knowledge of the market

Reading charts, books, attend workshop / seminars & understand the cycle of the market (supply & demand).

2. Capital Management

Risk management (how much I can lose in each trade), position sizing (how much to trade), assessing probability.

3. Tools

Charting software, Internet and online trading fascilities (reduce trading cost)

4. System

Entry strategy, exit strategy, profit objective, duration of trades (short term, medium term and long term)

5. Psychology

Emotion control & confidence (by doing back testing)

Last of all, which is the hardest to have and most important to have: DISCIPLINE. No point having all the system and plan in the world, but you can’t adhere to it. Stick to the plan and discipline yourself to act on the plan. The only way to make you believe in yourself is to practise. back Test will be a very good start.

Let me know if you want to know more about this. Wish you all the best in your trades. Start your TRADING PLAN today and you’ll be the 10% and have an edge over the others.

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