Over 90 per cent of all traders lose, declares Brent Penfold in ‘The Universal Principles of Successful Trading: Essential knowledge for all traders in all markets’ (www.wiley.com). He says that the reason why the traders lose is ignorance, arising from gullibility and laziness.
“It’s human laziness that causes traders to look for the line of least resistance. Why work harder when you can work smarter, right? Unfortunately, this can make traders gullible, and they start to believe what they read, what they hear, and what they install on their computers. This is because traders desperately want to believe there is a simple path to trading riches.”
Three pillars
To succeed in trading, you need to cover three important areas, viz. methodology, money management, and psychology, advises Penfold. The first is the analysis and trading plan behind why you buy and sell; the second, the amount of money you commit to trades; and the third is about having the discipline to follow your trading plan.
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