Option stock trading and stock trading can deliver a big profits quickly it can also bear losses to the aggressive impatient and undisciplined trader or investor. Knowing what to look for and be patient with shares and options are two of the most important rules of trading. For the unskilled and undisciplined trader and investor Too often, these errors spell economic losses, and clear economic catastrophe.

7 - Steps to Successful Trading

1. Major perception in trading - treat your trades like a business. To be a thriving trader it will command some time learning the fundamentals and advance analysis as well as a serious mind-set from you. The ideal way to say it is, really treating this as a business. Be smart in your decisions and bear in mind the first rule is - do not lose money - and the other is to keep the money you generate. Companies that lose money over and over in time will shortly be bankrupt.

2. Psychology - the winning characteristics of a successful trader. Many people do not discuss this very regularly. To truly master trading you need to tame your thoughts of fear and greed. Be extra careful with these two, fears and greed they show up in many ways such as, fear of not striking the right trade (chasing the trade), losing a profit. Greed in wanting more out of the trade when up and not take profits trying to squeeze more money from trading, putting too much money in a trade or trades and do not apply money management rules and last over trading.

3. Fundamental Analysis - To select stocks to trade can be a significant stopper, if you do not have a blueprint for how to pick out a stock. Awareness how to choose high quality stocks to trade is a integral skill. Using a tool like IBD investors business daily- earnings per share, relative strength and industry group's relative strength, sales and profits and accumulation and distribution is a excellent tool for important examination.

4. Chart Analysis This is a skill to read and understand graphs of stocks. Indicators can give you a clue about what happens to a stock. Use indicators that will alert you to a trade and indicators which will confirm the trade to enter and exit your positions.

5; Trading system - Having a plan is fundamental to success, how to pick out the position to trade, when to place and exit the trade. How much fund's to invest and having money management rules. What percentage is a losing trade and a winning trade. What are my time requirements of the trade. These are all aspects of a trading plan and should be consider by all traders.

6. Tools of the Trade - All top traders use technology to help them trade the best they can. Depending on how you learn to trade stock and options determines the tools you will use. For equity and options using a platform or a software program to help you with your trades will be one of your central tools.

7 Mentoring - For all the foregoing steps this may be the most important. You can take the footsteps of brutal knocks to learn, or follow in the foot steps of others and learn from their successes and failures. If you decide on the first one you may have a long way and need a lot of capital to keep you because of your learning curve and with any luck survive to trade one more day. Another method is to find a teacher who trades for a living and be taught from them and how they have succeeded. Your odds of accomplishment will be 10-fold. The key is to find a successful trader, and ask them can you teach me to trade.