May 1: Discover My Hidden Blueprint For Trading Success – No Matter What Market You Trade

by Dave on May 1, 2006

Once you have decided to begin trading, there is a bewildering variety of information and advice out there that will guarantee to put you on the way to success. A lot of this advice is good, and some of it isn`t, but it`s hard to tell where to start. Here is a broad outline of what I consider some of the ground rules you need to cover to begin trading successfully. As you progress in your trading, it makes sense to learn more about specific parts of trading, but everyone needs to start somewhere.

I`d start with defining your portfolio objectives. These objectives will have a great impact on your style of trading. Ask yourself a few questions, such as these, to find your objectives.

Do you want to trade part-time or full-time?

How much money do you have to work with?

What annual rate of return do you want?

Are you creating a trading system for cash flow or capital growth?

Once you`ve set your objectives, you should select a market to trade. It`s a good idea to avoid the tendency to trade everything. Many traders fall into the trap of thinking that the more they trade, the more money they will make. Unfortunately, this is not true. You need to master your chosen market, and then you make real money.

With your objectives and your market in mind, the time has come to design your trading plan. A well-thought-out trading plan defines your approach to trading. Also, a properly constructed trading system leaves no room for human judgment. It should be able to respond to any set of circumstances that arise with clear actions.

The importance of this kind of trading plan can not be overstated. Without a consistent set of guiding principles to govern their trading decisions most traders hop from one trade to the next, driven by emotion or hysteria. When you don`t have a plan, you plan to fail.

Try and keep your system simple. Many traders complicate their trading systems with out even trying. They accomplished this by over-optimizing. So many indicators are added to their system that it becomes nearly impossible to trade. Instead, keep your system as simple as possible. This way, it is robust enough to trade across many market conditions.

Once you`ve designed your system follow it perfectly. This requires a great deal of self disciple, but bear in mind that your will be rewarded with success. Undisciplined behavior will be punished by the market in the end, either by direct losses or by the loss of profits you could have made. However, the market is complex, and does not always act as you might expect. There is a principle of random reinforcement that you might encounter. It is the market`s tendency to reward bad behavior from time to time. This tendency is one of the reasons why it often takes so long to learn how to trade. Keep this principle in mind so that you will not be surprised, but remember there is no point in having a system if you are not going to follow it.

When you are ready to trade start small. Give your confidence time to grow, and give yourself time learn the intricacies of your system, and your market. There is always a learning curve when you begin trading. It makes sense to take the time to learn before you start adding more positions.

Now that you`ve started trading I have one last, crucial piece of advice for you. Follow the rules when you`re trading. Despite the fact everyone knows the old adage of `cut losses short and let profits run`, many traders fail to do this. Have strategies built into your system to ensure that these rules are followed. Adages only become old when they have proven to be effective.

I could go into much more detail on many of these points, but this is only a broad overview of the steps you need to take when you begin trading. With commitment, discipline, and careful consideration, soon you will be well on your way to being a successful trader.

This article has been extracted from David Jenyns` Trading Secrets Revealed Course. Unfortunately this course is currently sold out. To be notified if and when extra copies are released, please send us an email and we`ll let you know when you can purchase a copy of this highly recommended course. Click Here and send us an email. and be sure to mention you want to be on the `Trading Secrets Revealed Waiting List`.


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