A lot would say that it is the system or strategy that they employ which ultimately determines if they come out winning from the market.

Every system that exists on the internet will show you how to make money using it. Without a doubt, it will make money for you. The question is usually how much money will the system make for you. All the system that out there will show to you how their system has work base on historical data or activity and then at the bottom of the page there would be a disclaimer clause that states ‘.. Historical data does not determine or guarantee future earnings....’

So why is it that these sites or page include this disclaimer clause?

The disclaimer clause is incorporated in it because they know that there are certain elements which they can not control. Human emotions.

Human emotions are always the key to either success or failure in any business. And it is no difference when trading the markets. Read all the books about trading that you want, buy all the successful system that you want. If you can’t control your emotions, you can’t succeed in the markets.

That’s the reason for the disclaimers clause because the one thing that the author can not control is their subscribers or customers emotions.

In the market there are but only two main emotions that every trader will experience; GREED and FEAR. When this emotion appears it is not how we eliminate it but rather how we act on it. There are natural emotions that can not be eliminated. This emotions forces us to action, thus how we act on it will determine the outcome.

Like anger, when we are angry at someone, it’s either we say something nasty or we can just kick a bucket or even break a glass window. Which ever action that we take, it produces a different outcome or result.  

The usual description of any market assumes that every trader wishes to purchase or sell a known quantity at each possible price. All the traders come together, and in one way or another price is found that clears the market – that is, makes the quantity demanded as close as possible to the quantity supplied.

This may or may not be an adequate description of the markets for consumer goods, but it is clearly inadequate when describing security markets. The value of any capital asset depends on its future prospects, which are almost always uncertain. Any information that bears on such prospects may lead to a, which s we know are always uncertain. Any information that depends on its future prospects may lead to a revised estimate of value. The fact that a knowledgeable trader is willing to buy or sell some quantity of a security or commodity at a particular price is bound to be information just of that sort. Offers to trade May this affect other offers. Prices may, therefore, both clear markets and covey information.

The dual role of prices has a number of implications. For example, it behooves the liquidity motivated trader to publicize his or her motives and thereby avoid an adverse effect on the market. Thus, an institution purchasing securities for a pension fund that intends, simply to hold a representative cross section of securities should make it clear that it does not consider the financial interments under priced. On the other hand, any firm trying to buy or sell all large number of shares that it considers wrongly under priced should try to conceal its motives, its identity or both (and may try). Such attempts may be ineffective, however, as those asked to take the other side of such trades try very hard as you know to find out exactly what is going on and many do well succeed in these days of rapid communications and access to many sources of information succeed.

Sometimes in the case of new issues a payment extension period is also granted for the same reasons as above. It would be extremely insufficient if every securities transaction had to end with a physical delivery of transfer of actual share certificates from seller to buyer. A brokerage firm might well sell 1000 shares of ABC Co. for one client; Mr. Stevens to another client, and later that day buy 1000 shares for Mr. Felon obtained by accepting delivery from her seller. Mr. Stevens’s shares could be delivered to his buyer, and Mr. Felon’s shares could be obtained by accepting delivery from her seller.

However, it would be much easier to transfer Mr. Steven’s shares to Mr. Felon and instruct Felon’s seller to deliver the 1000 shares directly to Mr. Steven’s buyer. This would be especially helpful if the brokerage firm’s clients Mr. Felon and <r. Stevens held their securities in street name. Then, the 1000 shares they traded would not have to be physically moved and then the ownership would not even have to change at ABC Company.

As you can see valuation of your portfolio of stocks and securities are not always indicative of the true and exact value of your securities. Actual logistics, human emotion and even greed play major and ongoing roles.

      

Sometimes the best thing to do is to do nothing. Not trading on those bad days is key to becoming a consistent winner; in some situations it is very tempting to over trade. If you trade to fulfill a need for action, to relieve boredom. If you can't find the proper setup then you must have the patience to wait.  If you fear you are missing out on a great trade or on a great market. If you want to make up for losses (revenge). If you trade to feel like you are working instead of sitting around.