The 4Ms of Trading Continued: Markets, Method, Money and Myself

Paul Wallace, a forex trader and mentor speaks. The 4Ms of Trading: Markets, Method, Money and Myself. These are the 4 areas you need to cover to really succeed in this trading business because its when these 4 areas come together that we start moving into the level of consistent profitability.

Markets: There are thousands of markets you can trade; shares, indices, commodities, foreign exchange markets and you've got the bond markets. It is important to know that you are trading the right markets based on your risk profile, lifestyle, character, size of your trading account, your goals and outcome. The other important thing to know is to understand whether your market is trending or range bound in a consolidating range.

Method: Everyone likes a nice strategy but its probably the least important. Your exits are even more important than your entry levels. Is your method one that follows trends or does it work better in range-bound environment. If you use a trend following method but you are trading in range trading markets, you are unlikely to make money.

Money: I'm talking about money management and risk management. You always need to focus on money management; you always need to manage risk. Are you sufficiently capitalised to trade the markets you intend to trade?

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