Why do you think there are successful traders and others who never succeed at trading for a living?

Successful traders are creatures of habit who have found a winning formula; they don't care about forecasts because they take it one day at a time.

It has never mattered to me what direction the market takes on any given day. All I need to know is this: Is it going up or down NOW? I already know that, no matter what the longer trend appears to be, the market will never go indefinitely in one direction or the other without some bumps and shakes.

The most successful traders are not the "black box" variety. They are the guys who live on the edge, prepared to act on current information and behavior at any given time.

My point is this: If you want to make money trading and then put it into your bank where no one but you can touch it, you need to take money from the market in small bites. Small bites are good, and, together, they combine to produce a healthy meal.

Lack of understanding, combined with greed and fear, is the greatest hindrance to the novice trader.

Much of the time, the markets trade in a mechanical manner. Yet, on occasion, all hell breaks loose due to unexpected reports being released or some event that captures the imagination of the "smart money" people, so they plunge into the market in one direction or the other.

Novices who take no notice of the reports and general news events most of the time end up the bunnies when the market reacts to important news.

Trading is a job that is not simple for the novice who thinks that the futures markets are just a guessing game or that he or she just has to back test data and apply systems to trade it successfully.

Even the best mechanical systems are bound to "BLOW UP" a trading account within four years of beginning to trade it. And, these days, that happens a lot faster.

The safe way to trade is to understand the major players and their habits for taking trades in one direction or the other. To understand whether the market is offering you an opportunity to take easy profits from its behavior you must learn the habits of the successful traders who are there everyday.

The only people who can teach you these methods are people who have been in the business for a long time.

Unfortunately, the novice runs through a gauntlet of people who claim they know what they are talking about. Some of these people have even been around the industry for a long time, but many of them are not traders.

Personally, I would not listen to anyone unless I saw this person demonstrate his or her method in REAL TIME. If the method is good, the presenter should be able to nominate trading opportunities in advance. This person must also be able to demonstrate the mentality you have to have to become a successful trader.

When I look around at the traps these days, I see and hear of so many "not worth a pinch" trading systems being promoted on the Internet. So, my advice to any newcomer is to research all these promoters before you part with a penny. I have been in this business as a trader and educator for more than 25 years, so I know what I am talking about.

Have the company demonstrate some of its trading methods in real time for you to see if they work. You will quickly determine whether the method has merit and save yourself a lot of heart break in the future.

*Reprinted (and modified) with permission from Bryce Gilmore of http://www.wavetrader2004.com