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Ruellit

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Ruellit

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Re: None

Tuesday, 03/12/2002 9:55:44 AM

Tuesday, March 12, 2002 9:55:44 AM

Post# of 3263
5 Steps To Creating Your Personal Trading Strategy

by Jack Carter

The one sure way to fail in trading stocks is to start trading without a plan. Here are some steps you can take to create your own trading plan (I like to keep my plan as simple as possible.)

1. Know The Trend - Stay In The Trend.
We don't hang onto losing positions or go long unless the overall market is in an up trend. We go short in a declining market and short agressively in a down trend


2. Stick to your own rules.
One of the most beautiful things about trading is the fact
that we get to set our own rules. Here are some examples:

* What is my advantage.
* Where is my edge.
* Enter the protective stop.
* Never average down on a losing long position or avergae up on
a short.
* Cut losses at predetermined points, let profits run into
profit parameter then use trailing stop.
* Don't trade larger positions because of
recent successes. Stay within your size.
* Set a time frame for each trade.
* Trade only for profit, not for excitement.

3. Have your account at the right firm.
The firm you choose should allow you to do everything you want, like options, use of margin, provide you with good research, great trade executions, etc., and have very cheap execution costs (so that commissions don't eat up your profits). The best online broker is currently offering all Tricks Of The Trade members the largest commission discount available on the internet.

4. Have an "executable" approach.
All great traders have only 2 or 3 great trading stategies
they use to make most of their money. It may sound strange but it's true. Most professionals just do the same thing over and over to make small consistent short term profits.

Most do not use "rocket science level" technical analysis.
The old joke on Wall Street is "I never met a rich technician" and it's even more true today.

There is no "magic" technical approach to winning consistently in the market.

My approach is executable, simple and highly profitable, with just a smidgeon of technical analysis thrown in to help with timing for trades I intend to hold for a couple of days.

Today's stock market is so profitable to trade it's almost
ridiculous. There are several great trading opportunities that happen EVERY DAY, and you don't need complex technical analysis to find them and profit from them.

5. Understand the difference between TRADING and INVESTING.
I care about making money by taking profits when they present themselves, while managing my losses. As hard as it is to take a loss, it's crucial that you do it. Your survival as a trader depends on it.

Keep your long term investments separate from your trading
account. Don't let losing trades become long-term holds!!!
It's a deadly mistake. Cut the losses and move on.

Trade Well,
Jack

PS. The Secrets Of An Online Trading Mercenary are now available online at http://www.onlinetradingsuccess.com/cgi-ocal/sgx/d.cgi?34

Tips on Winning

The most important element of any successful trading plan
is your own mental attitude. This is something you need total control over. Without the proper mind-set and the necessary mental attitude even the soundest of all methods will lead to lost money. A winner is more defined by his winning mental attitude that his winning methodology.

What exactly causes one trader to play a stock and win, while another absorbs the same information and loses? The difference lies in the mind.

Winners consistently win because they are confident and certain. No method, however sound, will work for the trader who mentally pictures himself losing even before each trade is placed.

Got this in my email this morning and was impressed with it truthfulness and correctness! Now if I just start doing it again!

Muell <g>
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