I want to share with you five characteristics of successful traders. All the successful money managers I know had these traits.
1. Successful traders don’t “make things happen”. If you try to force the market and enter too early because “you know it’s going to go up” you will get hurt. The key is to be a follower, not a leader. Follow your system (if it’s a proven system like mine) and don’t make things happen outside of it. If you have a trigger finger and can’t help clicking your mouse, then do it on a demo account. Just don’t think when you get lucky a few times that it’s ok to “make things happen’. That is the whole reason for using a system and milking the slight edge it gives you.
2. Successful trades are prepared. It’s very important that you have a trading plan and that you stick to it. I will show you how to plan each trade quickly and easily each night in only 5-10 minutes after you learn my system.
3. Successful traders remain emotionally detached. Once you enter a trade, are you willing to forget about it until your pre-determined exit strategy is met? I admit that it’s fun to watch your trading account soar in a matter of days, but watching it too closely can be dangerous. My aftermarket trading plan eliminates 99% of emotion.
4. Successful traders expect to become rich. Can you picture yourself wealthy? Successful traders can. Don’t limit yourself. Prosperity must be on the inside of you before it is on the outside. If not you will self sabotage your trading account when it starts to get too high because of a subconscious hang up that you don’t deserve to be rich. I will teach you how to think and overcome any hidden physiological obstacles that are hindering you from success. That is part of my mentoring program.
5. Successful traders all had a mentor. Warren Buffett looked up to and learned from Ben Graham. Jim Rogers learned from George Soros. My personal mentor is still in the business (and no he doesn’t teach his system). Sure Warren Buffet modified his system from Ben Graham and later modified it to make it his own. That is why my system has three sets of trading rules.
• One for those who are very conservative.
• One for those who want moderate risk.
• One for the aggressive students.
This lets you take ownership of your trading. Taking ownership could be listed as number six. Why would you be any different in the respect to needing a mentor? It’s a fact and if I have to “sell” you on this part I’m not sure you understand how life works. For example, on your current job did anyone teach you anything so you could do your job effectively?
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Jason Goode
Access competent hints to car finance calculator – your personal guide.
Can you seriously pass this opportunity up?
I will give you a great technical trading system that works in ALL markets, not just ETFs, but more importantly I will teach you how to stay disciplined to follow the signals, how to be fearful when others are greedy and how to be greedy when others are fearful, how to milk the trend for almost all it is worth, and how to have minimal trades and risk when the market is not trending.
For example: There will be lots of days where we won’t be in the market. That is ok, if it’s not a system trade it’s not a trade. The day you start trading outside of the system because you are bored or “need the action” is the day you start losing. Not trading is a trading decision.
On the other hand there is under trading, not taking the trade when the signal tells you to. If that is the case why even learn my system? If you are that scared do a demo account a few more months.
You can paper trade for as long as you want. In fact that is what I recommend to all my new students. Don’t risk a dime until you see that my system works. Once you see that, trading discipline becomes easy.
There is a big difference between working and playing. In work you sacrifice your time. Don’t come to trading with “work attitude”. Come with the right attitude. The big pay days are easy and it will feel like play.
At some point you will get a string of winners, do not become overconfident.
At some point you will get a string of losers, do not get depressed.
At some point you will get no new trades, do not get bored.
Overconfidence, boredom and depression are all killers of good traders. If you know upfront this will happen at some point in time you will be better prepared for when it does happen.
These tips are just the tip of the iceberg compared to what is in my course, weekly webinars and member’s area. I am a trading veteran. If you will learn from me I will rub off on you.
Some testimonials (also found on the ETF Trend Trading Home Page).
• “I think the fact that I will be able to make trades in the evening for the next day and go on with my every day life with my wife and kids and still make money instead of sitting in front of a computer is worth its weight in gold.”
Richard L. – Commercial Airline Pilot
• “The system works hands down. This is the best system out there because it has definite entry points, exit points and profit levels. It greatly helps remove the emotion from trading.”
Mark K. – Programmer
• “As an Financial advisor, I would say that this system is far superior to “buy-and-hold,” and “asset allocation,” because it takes all of the guesswork out of the process.”
Michael V. – Financial Advisor
• “You can finally learn to trade with rationality, confidence and safety and tell your over-priced stock broker that you can trade better than him and say good-bye to him.”
John C. – Family Doctor
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Jason Goode
Find important hints in the topic of forex trading online – welcome to your individual guide.
Every trader/investor must guard himself against draw downs, which refer to the percentage drop in his account size after one losing trade or consecutive losing trades.
For example, imagine that after losing a few trades in a row, your $20,000 account is reduced to $12,000; that would be a drawdown of 8,000/20,000 = 40%.
If I were to ask some new traders, “In order to be back up to $20,000, what percentage return do you need to generate?”
Many would answer, “Since I lost 40%, I have to make back 40%!”
This couldn’t be more wrong! Note that after losing 40%, the trader now starts with a lower base, i.e. to undo the $8,000 loss, the return he needs to generate is 8,000/12,000 = 66.6%!
The more severe the drawdown, the harder it becomes to undo the damage, as shown in the numbers below.
Drawdown%……%Required to get back to break even
10%……………….11.1%
20%……………….25%
30%……………….42.8%
40%……………….66.6%
50%……………….100%
60%……………….150%
70%……………….233.3%
80%……………….400%
90%……………….900%
That is why all professional money managers only risk 1-2% per trade. It’s because no matter how good your trading system is at some point it is a statistical fact you will have 10 losers in a row.
Based on risking only 1-2% per trade this is only a 10-20% drawdown and easily recovered. 99% of the hype trading and investing courses in existence don’t say or do this. They say risk 5-10% per trade. It is wrong and will cause you serious financial pain if you follow their advice.
Many of them also use arbitrary stop loss advice. For example they say, “Place your stop at $100.10 because that is on the other side of a major support or resistance, trend line, MA, etc.”
This makes your risk based on the size of the stop. That is also wrong because the risk can be too large and it’s not the same risk on each trade.
Others reverse this and say risk only 2% total period and let that determine your stop. This is also wrong and will hurt you because it is important to have the correct technical stop.
The answer is to do both. Use a % and technical stop together. It works like this. Let’s say the technical stop is $100.10, but based on your entry price that is a 3% risk. Since your plan calls for a 2% risk you simply lower the number of shares you are trading.
This lets you stay within your 2% risk and have the correct technical stop. This is exactly what most professional money managers do. I know because I used to trade 50 million at a time and risk controls with correct technical stops is the number one priority.
Some say that this will lower their profits because of trading fewer shares. So what? Study the numbers above again. You know the old quote, “More risk equals more reward.” Well it’s not always true. Sometimes more risk equals more risk! If you lose your money you have no chance to make a profit. Even losing 50% is disastrous because you would then need to make 100% to get back to even.
Like Warren Buffet says, there are only two rules in investing.
Rule #1: Don’t lose money.
Rule #2: Don’t forget rule #1.
I’d like to add a third rule. Correct money management and position sizing must be mastered to insure your long term success.
The good news is that it is easy to have correct money management and position sizing. I just explained how to use a combo of a % stop and a technical stop.
Your system of entries, stops and profit taking is only half of your key to success. The other half is money management. If you get this part wrong you will lose your account every time regardless of how good your system is.
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Jason Goode
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