Everyone wants to be a winner; at least, they think so.
Unfortunately, most are not willing to perform the tasks necessary
to become a consistent winner.

Winners generally achieve success by being focused on a goal. Being
focused allows winners to remain committed to the tasks at hand.
Most winners perform a lot of hard work; including a willingness to
deal with sometimes mundane duties. Most of all, winners perform
with an "I am responsible for both my failures and successes"
attitude.

So, where does the would-be trader start to become a success? By
focusing on the tasks at hand. Most of all, treat trading as a
business. And, as in any business, money management is critical.

Money management, next to trend, is probably the aspect of trading
most overlooked by smaller investors. Man, by nature, is an
optimistic creature and the amateur trader often acts instinctively.
Unfortunately, this instinct or optimism is often the undoing of the
smaller trader.

When a person enters a trade, he does so with the hope it will be a
winner. When the position goes against him, he keeps thinking (or
hoping) "it will come back." He knows he should have a stop in
place, but hope keeps telling him to stay just a little longer since
everybody knows "you always get stopped out the day the market
turns." Eventually, hope turns into frustration, desperation and,
finally, panic, prompting the trader to issue a GMO (get me out)
order.

If the trader hasn't learned his lesson by this point, he develops
the "I have to get it back" syndrome. He generally rushes into
another poorly planned trade, throwing good money after bad.

Winners show several different characteristics. They enter the
market knowing they can be wrong and, in fact, are wrong as often as
they are right. They have learned markets don't run on hope. They
understand markets tell them when they are right or wrong. When a
trade is losing money and getting worse, the market is telling them
to get out. A bad trade is like a dead fish: The longer you keep it,
the worse it smells.

When a trade is making money, the market is telling them they are
right and to let the position ride. Winners don't add to,
or "average", losing positions. They dump the trade and go looking
for a new opportunity. Successful investors may add to the winning
trades. When ahead, they press their advantage while remembering
that at any time the market can turn on them and prove them wrong.