User:Menchacajulio/sandbox

Julio Menchaca (born September 1, 1962) is a U.S. Stock Trader.

Trading philosophy

Stock trading is a hard profession to learn most traders fail due to the lack of knowledge. We can also put into this area a poor education as many do seek to get an education only to look in the wrong places and therefore gain a poor education. I have never found a consistently profitable full time trader that has told me that they got there through luck. All followed these simple rules or steps.

1. They acquired the knowledge 2. Once they had the acquired knowledge they developed their experience 3. The above two steps are of no use unless the trader is willing to put in the hard work

I can honestly say that there is no substitute for hard work and that there are no short cuts to becoming a professional and competent trader. In reality, self-education requires both commitment and work. An educated trader, however, understands the importance of a trading plan, how to analyze a share in order to know why they are buying and selling, and how they will manage the trade. Most importantly, they also implement strong money management rules such as stop loss and position sizing to ensure they minimize risk and maximize profits.

To be a full time trader, you need to combine a high level of knowledge with experience; without this, your probability of success over the longer term is very low. Fear is your biggest enemy as a trader is a much stronger emotion than greed, and a trader’s fear stems not only from a lack of knowledge or confidence in their trading plan, but also in the trader’s confidence or belief in their ability to enact the plan successfully.

I have seen traders and investors begin to place more emphasis on charting techniques in an attempt to make better informed decisions about their investments, although in my experience this has the tendency to compound the problem if they do not understand how to correctly interpret a chart. After having worked with aspiring traders for over 10 years, the emotions of fear and greed drive traders and investors alike and without the correct education these emotions are often amplified which again leads to costly mistakes.