Every winner needs to master three essential components of trading; a sound individual psychology, a logical trading system and good money management. These essentials are like three legs of a stool – remove one and the stool will fall, together with the person who sits on it.

Traders lose because the game is hard, or out of ignorance, or lack of discipline or because of both.

Successful trading depends on the 3M`s - Mind, Method and Money. Beginners focus on analysis, but professionals operate in a three dimensional space. They are aware of trading psychology their own feelings and the mass psychology of the markets. Each trader needs to have a method for choosing specific stocks, options or futures as well as firm rules for pulling the trigger - deciding when to buy and sell. Money refers to how you manage your trading capital.

Many traders ride an emotional roller coaster and miss the essential element of winning: the management of their emotions.

When a beginner wins he feels brilliant and invincible Then he takes wild risk and loses everything.

The goal of a successful trader is to make the best trades. Money is secondary.

The markets are unforgiving, and emotional trading always results in losses.