I have mentioned the tortoise and the hare previously. The tortoise plods along year after year making solid, if unspectacular, gains overall and quietly and effectively heads for the finish line.
Nothing is more certain than that the tortoise will succeed.
The hare, meanwhile, has raced ahead - a blur in the distance. There is a very good chance that he will be seen by the tortoise again though. Perhaps lying at the side of the road, the victim of an unfortunate accident or “haring” off down a side road.
To be a tortoise may be effective, but it also seems boring. But creating and maintaining a retirement fund is a serious business. Who said it was meant to be fun.
In our investment strategies we have our money placed on the tortoise. Through planning and discipline, it is our intention that our clients will meet their financial goals.
Traders are people who make a living for themselves and others by trading the markets - currencies, shares, options, futures. It is an occupation where far more fail than succeed. And at the pinnacle are a few who have been able to beat the market consistently over time.
It is interesting to consider what some of the top traders see as necessary steps for success.
• Trying to win in the markets without a trading plan is like trying to build a house with out plans. Costly (and avoidable) mistakes are virtually inevitable.
• Money management is even more important that the trading method – risk must be controlled. Never risk more than 1 to 2 % of your capital on any trade.
• Discipline is vital. Know your plan and stick with your strategy. Don’t try to second guess your strategy – this will often lead to loss. Make decisions based on clearly defined objectives and try to avoid gut reactions and flavour of the month.
• Losing is part of the game. Because exceptional traders are confident, they will win in the long-term individual losing trades no longer seem a problem; they simply seem inevitable, which is what they are.
• Forget trying to judge trading success by how close you can come to picking the top or bottom of the market. Go for consistency in having a good percentage of winners.
Successful traders have a plan, they are structured in applying it and they give a lot of importance to risk management - protecting the downside.
They can be described as tortoises rather than hares. We look forward to being equally as effective on your behalf.
