Active traders and investors typically focus almost all of their energy on finding or tweaking a trading system. They therefore easily fall prey to the hundreds of "experts" out there who profess to have a secret way of looking at the markets that consistently makes money in all markets. Or, they fall prey to the internal impulse that says "if I just add this one more piece of information, I will have it!"

But ironically, what most don't realize is #1) A few basics and #2) The make or break role of having a system not to deal with the markets but to deal with their own psyche.

So let's start with the basics -

#1) Like an athlete - Sleep, eat and exercise in a way that gives you good energy.This is a very physical game - even if you sit in a chair all day!
#2) Like an Olympian, it takes a LOT of training and hard work to succeed. The competition is very serious about taking your money!
#3) Simple, clear trading systems are best. Contrary to what seems intuitive, you don't want something that has too many factors or that no one else can see.

The basic elements in such a system are an intra-market comparison and an understanding that volatility (speed and rhythm) goes in cycles - both over the course of a year and over the course of a day.

Now this is where you can get a true edge - an edge that no one can take away from you. But what is it?

#1) Basic knowledge (see 3 above)
#2) Knowing how to use your judgment within your system.
#3) Knowing yourself and your swings in mood, attitude and emotions BETTER than you know your charts.

#3 is the ironic holy grail of trading. Put together with a simple system it sets you on a path to trade or invest in any market over any time frame for the rest of your life.

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