To all who seek freedom from dependence on a steady job or sell their time for pay, are excited about being able to get rid of all that and start building your financial freedom. Therefore, we must start with the basics that are to spend less than we entered, save all you can to lean to hold our tickets and studying a lot about the subject at hand. Some want to build a new business, others to seek the best returns for their money. If this is your case, I bring you what the analysts of the Elliott Wave International firm, believe are the 5 fatal mistakes that affect our way of investing.

1. Lack of methodology. If you aim to be a successful investor, then you should have a methodology that is clear and concise and allows you to look objectively at the nature of the business where you want to invest.

The guesswork and instincts do not work long term. If you do not have an investment methodology, the lurching walks. This is more relevant when making investments in the stock market if you do not follow a methodology you have no way of knowing that is a sign to buy or sell.

On the other hand cannot even identify the trend consistent. To overcome this fatal mistake, enter your methodology. Define in writing analytical tools and more importantly, how to use them.

What really matters is that you make the effort to define it. If your methodology is too complicated to be written on the back of a business card, it is probably too complicated.

Indeed, the methodology is not something that should remain static and should be perfected over time.

2. The lack of discipline. When you have clearly defined investment methodology, you must have the discipline to follow your system. The lack of discipline in this regard is the second fatal mistake.

Religious discipline should be taken to follow the methodology of trading or investment that you have developed.

3. Unrealistic expectations. How many times you have not met with warnings like: “I spent $ 150 and to date have won 10 thousand” ads like this just make people lose money in droves.

They also help create another fatal error: unrealistic expectations. What many people ignore is that higher risk higher return. Such is the case of higher yields paid by countries with more risk of default.

Put yourself, it is better to win but win little risk for higher yields and left with nothing.

4. The lack of patience. This error is one of the more money we lose. A business where you want to invest East requires patience for the results.

The best advice to combat lack of patience do not have to worry about the lack of opportunities, because there will be tomorrow, next week, next month, that without fail.

5. The lack of money to invest. Managing money according to the risk correctly is the key to not losing money. Limit the risk as much as possible each time we make an investment.

Words, we must invest in our capital. Success is not easy. It’s hard work. If someone leads you to believe otherwise, run in the opposite direction, and fast.

The hard work can give a reward, because you can make a profit above the average.

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Those who have had the infinite patience to read me some time know that the issue of training in trading is, for me, a recurring theme. I’m interested, I’m surprised and I’m passionate.

I feel enough freedom to think and write about training in trading because neither is, nor have I been and I have no intention to do so. Yes, I have had the opportunity to attend many types of training and impart in some cases, but always on issues concerning my own specialty, Information Technology.

I’m also interested because the transmission of knowledge is part of a process of transferring information and I would say that in no other field like this for the training of traders have met such fierce criticism to the trainers. Moreover, indeed, the same trainers who praised by some students are brutally reviled by others. Why? What is wrong in the training of traders?

From a technical standpoint, distant and dispassionate, training may be addressed, as it should be a coaching. Try to explain with an example, is sure to be as fast and clear.

Imagine the first day of training a football team (although it could be any other team sport). We present a new coach and check out staff. It has high power and physically powerful, fast and powerful side, working ends, centrocapistas accurate in the control and the pass front precise in the auction and a pair of agile and brave goalkeeping.

And puts them all, day after day, to train the header from corner, and nothing else.

Sure, the front will be delighted. The plants will not do so badly. But the rest will suffer a lot, especially the porters who will wonder if the coach is kidding or directly is crazy.

I come to think of trading education is presently based on a pattern similar communication. A completely heterogeneous group of traders or aspiring trader, came to learn a technique or specialty without having the foggiest idea if they can fit into your personality and psychological characteristics.

A scalp seminar will look like a joke to a largoplacista, however well it is focused and an excellent set of swing trading techniques will seem unbearable boredom intraday most rabid lover.

The coaching based on providing the necessary tools so that each according to his own abilities, their needs and their knowledge, acquire the ability to make sound decisions. Not so much to teach something that was not known, but to train one’s skills in solving specific problems in making decisions.

Clearly, for this you need a firm foundation of prior knowledge but on this basis, a good training I think trading should be more like a coach than a traditional seminar explaining one trading technique that perhaps only in the background fits well with the personality of the trainer.

Note that this type of training now is completely honest, because he teaches it is convinced of its validity and students honestly think they need is a good method, whatever it is. And it is clear that a good method is better than nothing, but surely all agree that the method that best suits their personal and psychological characteristics will be the one with which we get the best results.

Has anyone been to a course of trading from a previous test? That would begin to be coaching, not training.

It’s an idea though, as always, I can be wrong…

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Warren Bennis is founding president of the Institute of Leadership Marshall School of Business at the University of Southern California and Distinguished Professor of Business Administration at the university. Moreover, finally yet importantly, he has advised four U.S. presidents (Kennedy, Johnson, Carter and Reagan).

Bennis is a man of big ideas and no less profound phrases. Speaking of unstoppable technological change (and not without a good dose of humor), years ago predicted that:

“Factory of the future will have only two employees: a man and a dog. The task of man is to feed the dog. The dog will see that the man did not touch the team. “

My occurred to me wonder if in future trading rooms as employees do not end up having only a man and a dog. What do you think?

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When I venture is to highlight patterns or show some interesting detail on the use of my indicators. However, I have found are not always well understood or appreciated.

I always try to raise all the possibilities of movement for the same asset and time. Some understand that doing so is a tricky exercise.

“So anyone,” read at some point someone, although not directly named me. “He has no idea where to shoot, and tell them all, and certainly succeeds.” Of course, I do not know us, or what they thought, I guess I am NOT!

Six or seven years I’ve been running through the halls of the individual trying to rationalize trading from a technical standpoint. Moreover, from the sound tougher, is there a possibility and ONLY look radically discard the rest? That is faith, and says that faith can move mountains, but from what I’ve found so far, I doubt that moving a single point contributions.

I try to have a plan for each of the possible movements of the assets of my interest. A different price levels have provided I can get in, bend, cut, liquidate or spin my position, and each of these actions on individual cases. Write it down on paper, I get signals on specific points on the graph and act when reaching. In addition, as my head does not go far, keep a few open positions at the same time.

I certify that, in general, most prefer the ORACLE analysis. People prefer a single idea categorically that a reasonable doubt. We seem to manage with two options cost the same time in the head.

The problem is when the asset does not do exactly what the oracle has predicted shift. The surprise halt. We were confused, stunned and disoriented. Moreover, while we think, curse the oracle. We give the blame to the market, handling, politicians and not all (except ourselves) think in the alternative and our losses increasing.

Streamline the trading is what professionals do. The emotional trading leave it to us, and we will…

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It’s funny. When I read the forums (sometimes in detail, but generally diagonal, for lack of time) I check as many traders are solely to escape from a job they hate, and some bosses they despise.

I wonder if they really that kind of negative motivation can give better results than making trading in positive and because they like it.

I understand that anyone who aspires to be a trader, you should see it as a positive and exciting goal, rather than as an escape route. Trader hoping to escape a painful situation does not seem a good idea, because the trading can be, and in it, quite distressing and frustrating if they are not well targeted. It takes a lot of balance to withstand the vicissitudes, and motivated someone wrong (or reasoned negative) probably cost you more effort.

Perhaps it is not what you need, but what you want. Perhaps it is not what you hate, but what you want.

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