Continued from page 1
He then reduced his position size to allow for these stop loss orders being further away from
price action, so that his account was never at risk of being totally wiped out by one serious loss.
He did a pre-trade and post trade analysis sheet, so he could analyze his performance and try to consistently improve his results.
(This can be as simple as a sheet of paper where you write down your order,
position of
market and your thoughts and feelings before, during and after a trade.
Or it can be an elaborate system of checks and balances that guide you through each of your trades. Be careful though - keep it simple or you probably won't use it!)
Once he started to do this, he started to make money (with
exact system we have been teaching you on this Website).
(There are, of course, many other strategies and systems you can use in addition to
lessons we teach you to increase your profits, but to start with, these methods are all you really need to become a profitable trader.)
We are always learning and improving - every trader should strive to do this also.
When you are making consistent profits using
methods we have shared with you, investigate some of these additional entry and exit techniques, but not at
start. Keep it simple.
When he started to trade this way, he found it was far better to take a small position with a loose stop loss and be able to sleep at night, than his previous strategy of using maximum leverage and stressing out whenever he was in
market, to
point where he couldn't stand to walk away from his screen in case
position went against him.
This method sets up lots of profits and a few losses. Much better than
alternative he had previously used.
He then started looking for Stocks that trended strongly for long periods of time, and was drawn to
US Stock Market.
He used exactly
same entry and analysis techniques I have shown you on
Website, and - He bought Call options in Gen Probe Inc (GPRO) with
Stock at $27 and held on until
Stock price was $58 three months later. He bought Pacificare Health Systems Call options (PHS) when it was trading at $24 and held them to $51 four months later. And he bought Sandisc Corp Call options (SNDK) with
Stock at $24 and held them to $58 less than four months later. (Please Note - these are not Stock recommendations, they are merely mentioned here for illustration and educational purposes and
trades are hypothetical examples).
Can you imagine
change in
size of his trading account balance?
None of these Stocks had given him any reason to sell earlier, so he simply held on for
ride…Awareness, Belief, Conduct...the success triangle.
The Awareness will come when you study and really 'get'
lessons on
Website and in
Newsletter.
Study
lessons carefully, read books written by
masters. Teach others what you have learned - you will gain a better understanding yourself.
All human interaction is a chance to learn or to teach.
By teaching someone else and sharing your knowledge, you will learn any subject at a deeper level. You ultimately go from an intellectual understanding to an emotional understanding (as Robert Allen calls them, an aha!) of your chosen area of interest, in this case, profitable trading. Try it...
The Belief will come when you back test
Trading Plan I share with you on
Stocks that you want to trade and prove to yourself that it does indeed work.
Visualize yourself making a series of profitable trades. Feel how good it is to see
market moving in
direction you expected it to.
Imagine spending
profits you make trading Stocks with your family and friends, and
time you will have to do
things you want to do instead of
things you have to do. Successful trading gives you
'time freedom' to do whatever it is that you want to do with your life. Do it first in your mind, and then do it in
market.
Your Conduct - well that's up to you. Will you 'decide' to look at your written trading plan as your life raft? Cling to it as your last defense against
emotions of fear and greed that live inside each one of us?
Will you trade with
trend, enter off 1 to 4 day reactions to
main trend, reduce your leverage or position size and put your stop loss orders out of
way, so
market has to change trend to get you?
If you do this, you should be confident that you can achieve trading success. That is our wish for you. Good luck.
Now, lets review today's lesson - The Trading Success Triangle has as it's three sides - Awareness, Belief and Conduct If any of these elements are weak or missing,
triangle has no strength The sides are all important and are dependent on each other, but Conduct is
most difficult for
average trader to master Fear and Greed act to change our conduct from what our rational thoughts tell us is
correct course of action, to actions that aren't always in our best interests By controlling Fear and Greed, we can make rational decisions that help us to become profitable traders
I hope this lesson has helped you in understanding
mindset of a successful trader a little better.
Understanding these three critical elements of trading psychology will put you well on
way to a profitable trading career.
Get this, and your trading success is practically assured. Miss
lesson, and your chances of making big money in
Stock Market are profoundly limited.
Please feel free to share this lesson with your trading friends and associates - they will thank you for it.
To Your Trading Success,
Tony Spann and
Team
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Stock Trading Review is dedicated to helping you succeed as a trader by sharing with you simple and easy to follow tips and techniques.
Discover more insider secrets and
exact proven strategies to trade stocks profitably:
http://www.stocktradingreview.com
Copyright(C)2005 Stock Trading Review

============================================================
Stock Trading Review is dedicated to helping you succeed as a trader by sharing with you simple and easy to follow tips and techniques.
Discover more insider secrets and the exact proven strategies to trade stocks profitably:
http://www.stocktradingreview.com