Alan Hull's Trading Advice

Alan Hull shares his advice for successful trading in this short video clip. He very succinctly identifies the key attributes and habits that a trader must develop. Here is the video:

Keys for success according to Alan Hull:

• Risk Management
• Organization
• Write it down!
• Trading is just another form of business activity (Benjamin Graham would agree)
• Learn by making small mistakes
• Start small and build it up (use a sandbox account)
• Develop confidence

To my mind these elements are applicable to any endeavor, not just trading. I also think the fourth bullet -- trading is a business -- encapsulates the mindset that a trader must have. Trading can be fun, sure, but it should be taken seriously. Overall it is easy to see why so many traders fail: each of these bullets addresses a basic human weakness. Success comes by identifying and overcoming ones own flawed tendencies.

Alan Hull's advice is in line with the advice from Larry Williams on developing a game-plan,  Van Tharp on finding low-risk trades, and Dan Zanger on having the confidence to bet big when the time is right.

Some background on Alan Hull: He is an author, newsletter writer, and breakout trader. His breakout trading approach uses the concept of "Points of Agreement" and capturing part of the rally that ensues after a breakout from this POA. An advantage of this style is that it works in non-trending market environments and can be implemented on a weekly timeframe. I might go into more detail on this trading style in another post.

There's a big difference between understanding how experts think and being able to think like an expert - Jonah Lehrer

Related Posts

• The Short List
• Full All-Time High List
• Focus on the Best Stocks
• Larry Williams Trading Advice
• Dan Zanger's Trading Advice
• Van Tharp on Stalking Your Next Trade