Success is the achievement of something desired, planned, or
attempted.
What does that mean for your trading or investing?
Desire is something we want, wish or long for. As better we can
formulate or visualize the desired future situation/result, the easier we can
strive for the well formulated picture:
“If you don’t know where to go, you might not get there”.
We help you to formulate attainable and specific goals in
twelve task-steps to better your trading or investing, with some hyperlinks to
real life examples.
Our studies were conducted over many years and we want to
share the essence with you:
Task-1: Use a
trading system, which allows you to find trade setups with a probability for
success above 63%..click to
read on for the detailed reasons. Back test 100 trades and forward test 10.
Then strike a balance: If your current system does not deliver on this
performance rate, you need to invest into a new one or take trading as a hobby,
means not expecting to make money from it!
Task-2: Work with
trading concepts and assets, allowing you to make money to the up- and downside
in any account: If you trade from an IRA, learn options trading or add Futures
to your portfolio of assets you trade.
Task-3: Trade for
minimum expected returns on cash invested or margin held: 0.5% on stock trades,
30% on stock options, 5% on futures and FOREX. If your trade setup does not
give you such returns: Find a different one or don’t trade. We teach the
reasons why in our mentorships…click
to read details.
Task-4: Find a
trade frequency that suits your personal circumstances and trade: If you are a
long-term investor, plan for a minimum of three trades a month and work with
weekly charts. A swing trader shall work with daily charts and minimum three
trades per week. Day trading is best accomplished with three trades per day on
reference time-frames. Here is an example for stock traders, who knows at the
opening what to trade and do this daily…click to
read on.
Task-5: Never
allow a single trade to produce a higher than 5% loss of your account value. To
do so, define for every trade a price threshold where the original assumption
of the trades is no more valid. If the necessary price threshold requires a
higher risk, do not accept the trade. When the maximum risk price is reached,
either exit your trade or apply methods of protection and capital preservation.
Task-6: Formulate
positive trade exits, take profits, and reinvest: Constant trading and
compounding interest has a much higher probability to build your desired
returns than betting everything on single trade wonders. To accomplish this
goal, you need a data source, which provides you with instruments ready to trade
on a consistent basis: Either, you develop this on your own or you purchase a
market proven trade alert service.
Task-7: Strive
for constant improvement: Journal your trades; check and balance which
situations worked and which not, take feedback from a coach, adjust and improve
your trading.
Task-8: Have a
plan and trade your plan (click
for an example) by formulating which instruments you trade, what time
frames you trade them on, how you trade them to the up- and downside.
Task-9: Treat
trading as a business: Set your trading or investing up, so you are treated and
taxed as a business. Work for yourself and make your money work for you without
getting distracted by other life circumstances. Have the technical capabilities
(computer, broker, charting, data lines) in place, which are required for
participating in the markets you want to be present in. Check our Kindle book..click.
Task-10: Prepare
for trading or investing: - Those who fail to prepare, prepare to fail – It is
essential to know the key events for the instruments you are trading: Earnings
announcements, news announcements, economic news on a worldwide basis (click for an overview):
Limit the risk of holding an investment without protecting yourself at such
critical times or being in a trade where news can trigger excessive volatility,
which potentially is taking out your stops, even so the market goes in your
desired direction.
Task-11: Mental
preparation: - Let the market guide you - Put your desire to trade or invest
away and allow yourself flexibility by not trading when there is no market
movement and increased trading when the markets allow. Build yourself the mind
and inner constitution by controlling your emotions and desires so you can make
conscious decisions, which allow you to apply your trading principles.
Task-12: Educate
yourself: - An investment in knowledge always pays the highest interest – Be
trained at what you trade and add new skills, new understanding, new visions
and strategies that allow you to stay and move with the markets, giving you the
flexibility to trade or invest in various instruments and asset categories.
Happy Trading for 2015
NeverLossTrading
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