The importance of discipline in actively managing your market trend trading system is not taken seriously enough when investors get together to discuss the best ways to profit on the stock market. What many don’t always see right away is that investors who make consistent money on the stock market do so because they have discipline. Money is touchy topic for many people and as such it is easy to get carried away with anything that involves it. Successful investors in general do not let that happen, but these are a few reasons why discipline is so important to market trend investors.
- Emotions Cannot Make the Decisions
Finances are an important thing, and outside of business emotions are a perfectly healthy thing as well. With the way people can tie themselves to their money it is not so hard to see why investors sometimes get caught up emotionally with the investments they make. Fear, greed, stubbornness, and panic all sometimes have more influence than an investor should allow. Investors who intend to use market trend investing cannot allow their feelings to sway their choices. The system needs a full commitment that is held to until the end. To put exit a transaction that is doing well can be just as hard as leaving when a transaction doesn’t go as planned.
- Investors Cannot Do Whatever They Want
The investor who strays from a strategy is in the wrong, but the investor who never had a strategy is in a far worse place. There are newcomers who arrive onto the scene planning to use their “sixth sense” to make unheard of fortunes. What they fail to comprehend at the start, is that there is nothing random about the stock market. It is not a casino and as such there is no need to gamble. Discipline keeps an investor from entering with this mentality and helps an investor continue to abide by their guidelines once a strategy has been thought out.
- Helps Investors Stay With What Works
When strategies don’t appear to be working the way one wants, it takes discipline to not dwell on other ways to make more. In the search for faster money investors can skip from strategy to strategy. An investor has no choice but to stick with the plan when it comes to market trend investing. The reason people have made good money from it in the past is that it is based off of the market itself. Discipline is key to making sure that an investor does not fall into the trap of changing approaches every few days. It makes sure investors stay on a proven strategy.
Discipline is crucial to sparing investor’s grief and heartache when it comes to investing on the market. Investors who believe that freelancing is how profits come in will be in for a world of hurt. Discipline is gives investors the ability to make moves that are within their finances and abilities while making profits at the same time. You never hear of investors who use discipline in every transaction becoming stock market casualties. The importance of discipline in actively managing your market trend trading system is something that cannot be said enough.
We have written a number of articles such as <a href=http://markettrendinvestor.com/5-reasons-why-trend-trading-is-better-than-buy-and-hold-investing/>5 Reasons Why Trend Trading Is Better Than Buy-and-Hold Investing</a> and other best and relibale resources are all posted at <a href=http://ezinearticles.com/?Discipline-Plays-Important-Role-in-Actively-Managing-Market-Trend-Trading-System&id=6646547/>Market Trend Investors</a> where you can also find our featured investor solutions.
When talking about the stock market the word “playing” is not the appropriate term to use. You should make the right choice of words, to understand the concept of the business you’re getting yourself into, and to get a satisfying result at the end. So instead of playing why don’t you use the word invest? This is definitely the right term when talking about this particular market.
To be successful and make considerable profits you should invest your money in the stock market; the playing is reserved for games and this is a business project with risks and potentials that you shouldn’t underestimate using the word “play”.
To be successful and realize profits in this field, you should above all learn the fundamental guidelines of the stock market. A strong knowledge in terms and basis is required to be able to identify the wrong from right, a good advice from a bad one. Whether you are dealing with a broker or a financial planner, they both have a deep knowledge in this business and would easily play a trick on you. The best strategy is studying more about the stock market. You should take a moment to study this market well and all its ABCs to guarantee success, or at least, be capable to make a small profit.
Investing money is a serious matter, the reason why a small familiarity with the required guidelines is crucial to be able to set your own investing strategy or at least participate vigorously in the making. Ask questions, borrow few books, read, learn, and take the proper actions needed to become a strong investor capable of working your money and making great profits.
Before choosing your broker or financial planner, it is important to know the qualities and qualifications that should be available in an advisor to insure a successful investment. This will take us back to the previous advice consisting of acquiring proper knowledge about the stock market before putting your money to work. A good guide or book about this particular subject could make an excellent choice to help you learn more about the business. The deeper you learn the more qualified you will be to choose a broker who is competent enough to help you make a fortune out of this business.
Again, it is highly discouraged to use the word play while talking about the stock market; this business is not a game even if it involves winning and losing. In as far as trading in the stock markets is concerned it is all about investing in your hard earned money, and nothing else. Therefore if you are looking to try and play, you are in the wrong place. You earn your money the hard way, and for the same reason you have to make sure that you invest it the same way too. You should always be very careful about how you go about transactions in the stock market, because the manner in which you go about them will go a long way in determining the kind of success you can achieve.
A Video on Market Trend Investing Has been posted to our youtube channel, and it can be seen here: <a href=http://www.youtube.com/watch?v=gvRbe-4eG54&feature=youtu.be/>How To Learn Stock Market Trading</a>. We also have a posted a fantastic article here: <a href=http://timingsignal.com/the-buy-and-hold-strategy-cannot-compete-with-stock-market-timing/>The Buy And Hold Strategy Cannot Compete With Stock Market Timing</a>. Visit either of these locations to Learn More about Market Timing or Trend Investing.
There are many financial markets in the world, but really only one system. They are so interconnected that you really can’t separate them too much or have no correlations at all. Knowing how to invest in the stock market requires you to understand, at least a little bit, how they all work together.
US Stock Markets
You have the stock markets in the US. That would be the NYSE and the NASDAQ. If you are a retail investor, it is most likely that you will be in at least one of the two. If your investment strategy is to find the best stocks to buy, you’ll most likely do it on the NYSE or NASDAQ.
The New York Stock Exchange (NYSE) is the oldest and highest volume stock market. When people speak of “Wall Street”, they are specifically referring to the institutions around the NYSE, which is on that street. But now it has a broader meaning as in the “stock market”, which includes the NASDAQ.
The NASDAQ is purely an electronic trading platform. The NYSE still has a physical trading floor. Although it’s not as important as the center of activity as it has been in the past, traders still operate on the floor.
International Stock Markets
Most of the major developed and emerging countries have their own stock market. Again, these markets are very interconnected so there are exchanges that are more influential on the global stage than others.
The more influential ones are the London Stock Exchange, the Hong Kong Stock Exchange and the Tokyo Stock Exchange. Singapore and Shanghai are also fast becoming very important financial centers.
Then you have the commodities market which resides in Chicago. That’s called the Chicago Merchantile Exchange, which not too long ago merged with the Chicago Board of Trade, also known as CBOT. There is also the New YorkMercantileExchange.
Then you have the currency markets which there is really no centralized place for that. It’s mostly done electronically and is actually the largest financial market in the world. There are trillions of dollars in transactions each day.
This is the only 24 hour market. They open on Sunday at 5pm ET and close on Friday at 5pm ET. They stay open throughout the week.
The trading starts in the Australian session, which is 5pm ET. The Tokyo session is next at 7pm. Then you have London that opens at 3am.
Again, even with all of these different exchanges, what happens in one market has profound affects on all of the other markets. It’s just one big global financial system.