If the stats are true that 90% fail at trading, 5% break even and 5% make money, those are not the best odds.  My viewpoint is that if 5% can make money why can’t I be that 5%. 

The stock market has an amazing ability to attract new blood which pays the upper 5%’s paycheck.  I knew when I first started trading that there had to be something different that set me apart from the 95%. 

I pose the question to you today as a trader, “What sets you apart from the other 95% who trade?”  To me personally it has been the following three factors I adhere to which keep me in the 5%. 

  1. Have a method of trading that has strict setups that you follow day in and day out.  You must have a defined trading methodology, which is simply a clear and concise way of looking at markets. Guessing or going by gut instinct won’t work over the long run.
  2. Have a hardcore mindset to never trade outside the method with setups which equals discipline.  When you have clearly outlined and identified your trading methodology, then you must have the discipline to follow your system. The best advice I can give you to overcome a lack of discipline is to define a trading methodology that works best for you and follow it religiously.
  3. Have a money or risk management strategy to controlling losses and let your winners run. 

I call these the threefold 5% rule.  If you are missing one of the three you are the 95% or will soon be.   

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