Ask Colin

What are the three most important factors in being a successful trader?

1. Having a sound, written trading plan that suits the psychology of the trader.

If you do not know what you are trying to do, you have no chance of making sound decisions, because you have no frame of reference for them.

2. Having sufficient capital. Without it, you have to take too much risk.

In gambling terms, the risk of ruin is almost a certainty.

3. Having both education and experience in the markets.

Nobody would be allowed to practice in any other profession without the minimum formal education and some years of experience, because they would not be competent without these two foundations. It is no different in trading, except that nobody stops traders losing their money.