Basic Rules for Successful Trading

May 31, 2007 by admin · 1 Comment
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Rules for Successful Trading

Rule #1 - Know What You’re Doing

In any endeavour, in order to be successful you must know
what you’re doing. Sounds obvious, but so many people get
into trading and get busy risking (and losing) their money
before they get a decent handle on what making money in
trading is all about. Most get busy before they are properly
prepared, and it is NOT as easy as it’s made out to be.

Right along with learning what the right things are, you
absolutely must know what the mistakes are that can hurt
you.

If you make money on one trade only to give it all back on
the next, then why bother at all? You have to know both
sides of the trading game to end the month ahead.

Most importantly, you have to protect the money you started
with, as well as any money you make along the way. Knowing
the pitfalls, traps and mistakes is the best safeguard you
can have and one of the most important steps for you to
take as a trader.

Rule #2 - Get a Handle on Your Emotions

Even after you build some competency with your trading and
after you get to know what you’re doing, you absolutely
must have a good handle on your emotions. Almost all of
the big losses and missed profits in trading come from the
trader allowing their emotions to interfere with good
trading and sound decisions.

Poorly managed emotions can and usually are the single most
costly aspect of the trading activity. Ask any veteran
that has achieved a consistent level of success and they’ll
tell you that you have to keep a cool head to make it as a
trader.

And that means properly managing your emotions.

Rule #3 - Know Your System

As part of your emotional control and in knowing what
you’re doing is to have your trading systemized, and then
to know that system well. You have to know what your
system is capable of in order to have any confidence in it
and in yourself.

There are several metrics that are critical to the trader’s
bottom line, several aspects of your trading the make the
bottom line what it is.

Critical numbers such as:

- Your true winning percentage
- Your true profit-to-loss ratio
- Your average win size
- Your average loss size
- Your average return on the trades your place
- Your return on your trading efforts (both in time and $)

Without keeping a close eye on these numbers, you are going
by chance and missing out on the opportunity to make your
trading better than it is and to see the profits that you
and your system are capable of.

Rule #4 - Treat Your Trading Like the Business That It Is

Any activity that you expect to be involved in and make
money from should be treated as a business.

This requires more than just throwing money at an
opportunity to make money. If you truly want to have your
trading produce an income stream for you, then treat it as
a business.

This means that you need acquire the right resources to
ensure that you give yourself the best chances of success.
Resources like:

- the right broker
- software
- data and information sources
- education

Now you shouldn’t just go crazy with your spending,
thinking that you can buy your success with a magic pill,
but you should also realize that going it alone and not
investing in your business is the truly costly and
difficult way to reach success as a trader. Budget for
and make the investments necessary to grow a solid
business.

Rule #5 - Make the Determination That You Are Going to
Become a Good (or Great) Trader

Your trading profits and losses over the short and long
term will be determined by what you do as a trader.

You have to take responsibility for your trading, and by
doing this you also take control over your fortunes.

The skills necessary for successful trading are learnable, and
you’ll find that every long term trader has been a student
of trading and most likely they still are, even after achieving
the level of success that most traders aspire toreach.

Acquire the tools you need to trade and focus on developing
your skills as a trader, along with yourself as the person
doing the trading.

Follow the rules above and give yourself the best likelihood
of achieving the goals you have as a trader.

For free reports and to find resources to help you incorporate
the above rules into your trading, go to the following links:

Rules 1, 4 and 5 - Know the pitfalls & traps, Treat your trading
like the business that it is, Become a great trader

Rule 2 - Getting a handle on your emotions

Rule 3 - Analyze your system and your trading

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First Price Increase for the Trading Performance Analyzer

May 14, 2007 by admin · Leave a Comment
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Today the last of the “pre-launch” copies of the
Trading Performance Analyzer got snatched up at
the introductory price by my personal loyal
subscribers.

That also means that the price went up to $47 - for
the time being. The TPA has been very well received
and I’ve had many traders tell me that the price really
could be much much higher and still a great bargain
because of the power it gives you to see where the
strengths and weaknesses are in ANY trading system.

http://www.insideouttrading.com/tpa/

Analyze your current trading with real data or backtest
a new system BEFORE you risk money on someone
else’s claims.

That’s a powerful tool! Yet it has been kept simple and
very user and printer friendly.

Only takes about 10 minutes once you have your trade
information in hand and you can see all the critical
aspects of a system that tell you if that system can
actually perform and make you money.

You can also track your trading performance over a year
and see on the Equity Graph (a recommended item by
the pros) if your really doing better or worse as the year
goes on.

Plus, you’ve got the scorecard for your system to see if
your trading is really meeting your goals, and what your
hourly rate as a trader is!

Even at the modest price of $47, the TPA will continue
to empower traders around the world. Here’s what one
trader had to say:

“
“Wow!, Talk about having everything at your fingertips.

Before I got my hands on the Trading Performance
Analyzer, it took me hours every month going through
my trade results, seeing if I was reaching my targets
and goals.

The Trading Performance Analyzer has allowed me to
simply enter my trade results for the month and give
me all the information I need in one easy package:
from my profit-to-loss ratio, return per dollar invested,
a great equity graph for visual reference, then the best
part…I can now see what I’m worth an hour. It actually
gives me my hourly rate! I’ve never had anything tell
me that before.

It has literally saved me many hours a month, and now
I can see how much that is worth to me.

Brian, once again you’ve given my trading profits a
great boost.”

- Dean WhittinghamMelbourne, Australia
The Financial Market Fisherman

Get your copy today and stop wishing or hoping that
your trading will be all that you want it to be!

http://www.insideouttrading.com/tpa/

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Do You REALLY know your trading numbers?

May 9, 2007 by admin · Leave a Comment
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Of course you’re watching your account balance and whichever indicators and signals you use, but I’m talking about your trading *business* numbers.

Every business owner knows that there are specific operating variables that make the bottom line what it is, and by focusing on those numbers and what makes them, the profits will show on the bottom line.

In a ‘regular’ business, you’ve got to watch things like:
- labor hours
- advertising costs
- efficiency
- profit margin
- shipping
- etc, etc.

By measuring and closely monitoring the business variables, the goals of the business can be more predictably met. These are also crucial when it comes time for forecasting.

Well, trading is no different.

If all you’re watching is your bottom line, well at least you’re watching that much. But you are missing out on the real opportunities to improve and bring predictability to your end-of-the-month numbers.

Additionally, you really do want to have the abilityto PLAN for your trading business. Lacking certain information makes it really difficult to envision where you are likely to be 3, 6 or 12 months from now.

We’re talking about variables like:
- average return per trade: what can you reasonably anticipate making over the next 20-50 trades?

- your true winning percentage: is your current trading really performing like you ‘think’ it is?

- your true profit-to-loss ratio: is your trading really as profitable as you’d like it to be?

- your hourly rate as a trader: is all the time and blood and sweat that you’re putting in really paying you what you’re worth?

These and more are all easily figured for you and all you need is your current trading information and about15 minutes. Check out the Trading Performance Analyzer.

http://www.insideouttrading.com/tpa/

Get a real business snapshot of where you’re at right now and see where your opportunities are to boost your bottom line and bring some predictability to your trading.

http://www.insideouttrading.com/tpa/

You’ll be very glad you did!

Cheers

Brian
Trading Self-Defense Instructor

P.S. If you’ve already gotten the Trading Performance Analyzer, then please make sure that you put it to use. I included you here because there are a lot of things that you can get out of the numbers in trading and I wanted to make sure that you had this additional food-for-thought.

http://www.insideouttrading.com/tpa/

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