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20 Survival Skills For The Trader - The road
to Trading Success is never a straight line.
(1) Know the difference between trading and
investing. We are traders, NOT investors.
Discipline is doing the right thing at the right time...every
time! Survival in this business is dependant on the right
decisions.
(2) Don't let losers run! Always use stops (i.e. Initial Stop
Losses [ISL's]). Have an absolute limit - like a maximum of 8%
of the stock value (taught in the 'PSTS' course). Risk
management is very, very important in your trading. Don't be
stubborn in holding a position/opinion. Remember, while you may
not be wrong often, The Market Is Always Right. The best traders
are the first to admit (to themselves and the market) that they
made a mistake.
(3) Trade only price pattern set-ups (taught in the Trading
Concepts 'PSTS' Course).
(4) Trade for skill, NOT the money. If you're focused on the
money aspect of trading...you're not focused on the 'trade'. And
SCARED MONEY NEVER WINS!
(5) Concentrate on 2 to 4 stocks at a time (if that's you
comfort level). Remember that stocks have personalities, habits
and friends...get to know them all.
(6) Focus on your executions. Remember, every execution is a
trade. Money is valuable...don't leave it on the table.
(7) Model Yourself After Successful and Experiences Traders. You
will be all you can be...but you need to start somewhere. That's
where the Trading Concepts 'PSTS' becomes invaluable to you as a
trader.
(8) Be Teachable. Learn something new everyday (or at least
every week). The 'Losing' and 'Winning' trades can teach you a
whole lot.
(9) Remember that even the best of the best traders lose money.
Learn to accept your losses and move on to the next trade.
That's just part of the business - you will NEVER win 100% of
the time.
(10) Use relatively small share size...at least at the beginning.
Large wins at the beginning generally means large exposure.
(11) When in Doubt, Get Out (or Stay Out)!! Deal with reality,
if it (the stock) doesn't behave like you expected, Get Out Of
The Market Immediately!
(12) Learn the difference between gambling and trading: (1)
Don't trade a stock just because it's irrationally high or low,
(2) no new positions before the market opens, (3) no positions
before major market announcements, (4) always use a protective
stops (ISL), and (5) always have a high probability trade set-up
before putting on a trade (a 'PSTS' for example).
(13) Never, ever add to losing trades.
(14) Don't' overtrade. Trade more only as you get more
experience and only if you're Winning. Not the Opposite.
(15) Be Logical, NOT Emotional. Emotions can help destroy you as
a trader - be very logical and follow your trading rules.
(16) Exercise Patience. Do not force trades when there are none.
(17) Exercise Diligence. Do your homework and preparation before
each and every trade. Be willing to let time do its work. Hard
work is required in this business.
(18) Anticipate, identify and take full advantage of momentum in
the market. (for example, the 'Extreme Upside & Downside Running
Patterns' as taught in this Course).
(19) Always select realistic entry and exit points and write
them down. This goes hand in hand with doing your homework and
preparation before each and every trade.
(20) Maintain a list of your current open stock trades, monitor
them closely, and try to limit them to 2-4 LONG trades and 2-4
SHORT trades.
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Click here to listen to students
The Industry's BEST Coaching and Mentoring & Training
Program!
(in our opinion)
Kiran V. ~ Macomb, MI
Thank You Todd!
Just a note to thank you for the One-On-One Training in your
methodology of trading the markets. As I have told you on the phone, I believe
your methodology of analyzing price structure of the markets is absolutely
fundamental. This analysis is so fundamental that I find it tradable in Any
Market, not just the S&P 500 market.
As you know, I am now trading full time in the S&P's due to the confidence I
have in your trading techniques. My confidence comes from the fact that you have
taught me how to trade as opposed to programming me without a truly
comprehensive understanding of what the market is trying to tell me.
Since I can
anticipate what the market should do in a given situation, I don't freak out
anymore if the market goes against me. All the books say, "listen to what the
market is telling you," now I finally understand a little something.
I am writing this letter to emphasize that I really appreciate the One-On-One
Training; it was an Absolute Bargain! At the very least, it totally focused my
analysis of the market; at best, it has helped Change My Life!
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