Follow Simple Trading Advice For Larger Profit Potential
Most traders are familiar with simple trading advice such as cut your losers quickly and let your profits ride. At one point or another, most traders heard or read such advice or something that sounds similar to it. Unfortunately, this type of advice is very general and doesn’t really provide too much guidance for traders who are willing to follow the necessary steps to increase their profits and possibly reduce their risk.
Today, I want to give you 5 specific tactics you can grab ahold of, put in your trading tool belt, and use every time you approach the markets. These tactics have not only helped me in my success, but they’ve also helped thousands of other traders out there.
My hope is that after learning these 5 tactics, they will help you make money in the markets.
Most Simple Trading Advice Is Not Very Simple Or Practical
A few weeks ago, I got a call from a trader who sounded very frustrated about his trading performance. He began telling me an interesting story that I can’t wait to share with you today. The trader began to tell me that he signed up for a beginner’s course that promised “simple trading advice” for traders who are just starting out… and at first, I definitely thought he was going to tell me that he definitely got scammed…
But thank goodness, he didn’t! While I don’t want to name this course or the author of the course in this article, it happened to be a very popular course that’s been around for about 20 years. Without getting into specifics that would take all day, the course consisted of a handful of trading patterns, trend-line analysis techniques, and a large notebook with about 400 pages demonstrating these setups as they occurred over a 10 year period. There were also 8 videos demonstrating the same patterns as they occurred in real time.
This Simple Trading Course Was Missing The Most Important Piece Of The Trading Puzzle
After asking the trader some basic questions, I realized rather quickly that this so called “simple trading course” was missing two of the most important parts of any trading course. This course had absolutely no discussion about exits, the only comment that was ever mentioned was make sure you cut your losers quickly and let your winners ride.
The trader who bought this course contacted the author who didn’t really offer anything other than telling his new client that the course involved discretion. The author also said that every set up required different level of stop loss placement and profit targets. There was no discussion of volatility, ratio of winners to losers, or anything useful that could give real guidance to the trader who needed to know where to place stop loss orders and profit target orders.
Exits Are The Most Important Part Of Trading
I have to say that I really felt for the trader who called me. He sounded like a real nice guy, and I decided to offer him some quick guidance to make his life a bit easier, especially after finding out he spent over $1,000 on this so called “Simple Trading Course.” I pointed him to a few free videos on our channel that explained exits and profit targets.
I also explained how to use volatility and ATR (Average True Range) to measure stop loss placement levels and how to use ATR to calculate profit targets as well. The trader was thankful, and ended up signing up for one of my premium subscription services immediately. This way I could show him the way, deliver him exact stocks and options, and also give him exit and entry instructions. He was so excited to find the help he has been searching for, and I was excited to trade alongside him. If you are looking for something similar… a strategy that will actually help you, be specific, and give you clear exit/entry instructions, then sign up with today, I want to trade with you!
Anyways, after I hung up the phone, I started thinking about other traders who are in the exact same position as the trader who I just finished speaking with. I decided to put together a short list of essential elements that you should look for when selecting your first trading course, workshop or tutorial program (whether it’s with me or some other professional trader out there).
My Short List Of Essentials Course Topics
Every Set Up Should Have A…
A. Logical Explanation – Don’t trade black box methods or set ups that have no logical basis. You should always know the reason for the set up and how the set up increases your odds of profitability or increases the size of the winners. Without knowing the underlying why the set up is better than random dice rolling, you won’t believe in it and will abandon it at the worst time. This is something I always make sure to do in any briefing or training I host. If you’re looking for a logical explanation for a strategy, just catch my 45 minute briefing where I identify exactly how to make 176% gains on Blue Chip stocks… in the training, I will tell you the exact code I use to locate these explosive stocks. Explanations are very important! Watch it here for free.
B. Every Set Up Should Have A Predefined Stop Loss Level – Make sure the set up tells you exactly how to calculate your protective stop BEFORE you enter the position. You always have to know your risk level prior to your entry so that you can calculate your position size. Without knowing what your risk could be, you are flying blind. In every alert provided in our 14 Day Breakout Code strategy, we provide detailed instructions on exactly what levels to aim for when entering and exiting a trade we recommend. Jump on board, right here.
C. Every Set Up Should Have A Predefined Profit Target Level – Avoid general terms such as “let your profits run and cut your losses short” and rely on specific price levels. Make sure your ratio of profit is twice as large as your loss level on every trade. Detailed instructions are the key for me when helping other traders and delivering trade recommendations. Perfect example: our instructions we provide every other week in our latest strategy. Catch the overview for free!
D. Every Set Up Should Have Additional Conditions That Will Improve The Odds Or The Profit Potential Of The Trade – Most good set ups or trading patterns have additional conditions that make the trade more or less likely to achieve success.
E. Learn How To Read Underlying Market Conditions – Finally, don’t trade in a vacuum. Know how the rest of the market is behaving when your set ups are triggered. Market analysis is crucial for trading success because most stocks and other markets are not independent of other markets or market conditions. When you trade alongside me, I always provide my market analysis every single morning to you. In it, I provide a detailed evaluation of the previous trading day. Start your day by reading it. It will keep you up-to-date on the market conditions so you can stay one step ahead of all the other average traders in the world. Let me trade alongside you, and I’ll provide all these things and more!
So What’s Next?
So you may be asking yourself “sure those are all great things to look for, but what’s next?” Well I’ll tell you what’s not next... what’s not next is you being scammed like that other trader I mentioned earlier in the article that called me.
Don’t let that be you. You’ll be overwhelmed with too much information, unclear instructions, and you’ll have wasted your money. Yuck!
You want a trading strategy that works and that has a genuine trader behind it all.
All you need to do is…
A. Trust me
B. Watch the free training where I’ll give you my secret code for free
C. Join me
D. Receive clear education and clear trade alert instructions
E. Make money!
It’s simple as these 1… 2… 3… 4… 5, so what are you waiting for?
This article is supplied courtesy of Roger Scott.