Today I want to show you how to be more successful than 99% of all the traders and talking heads out there.
I’m talking about a simple plan that will make most of the traders you look up to ask “how did you do that?”
It’s not some fancy software. It’s not a new trading technique. It’s not some currency pair or explosive stock you’ve never heard of.
It’s my basic philosophy of trading. Are you ready for it?
Take a deep breath…here it comes:
The plan is: make a dollar. Keep a dollar.
Ageless Trading Wisdom
I know it sounds silly. I know it sounds way too simple.
But I’m telling you the God’s honest truth: if you end the year one dollar richer than you started it, you will be one of the most successful traders in the world.
That’s because a good chunk of traders lose money because they are too focused on the smaller picture.They look at a trade as a winner or a loser, and if they lose three trades in a row, they think they’re ice cold.
It’s an easy trap to fall into: you had a big loser, and you ignore the fact that your last six trades were winners that more than balance it out (or vice versa).
But you need to look at the big picture. Think of your trading as a business. Look at how you did over a month… a quarter… a year.
If you’re winning more than you’re losing, not by winning each trade but by winning the BIGGER trades, then you’re ahead of most traders and on the path to profitable trading.
The easiest way to do that is to limit your risk using smaller position sizes, diversification and cutting your losses early. Don’t let emotions get in the way and let a small loser turn into a massive one.
You also can’t be greedy. It’s okay to take profits a little early… you don’t have to wait for that “final move” on a trade. No one ever went broke taking a profit, as they say.
It may sound cliché, but this is a marathon, not a sprint. Don’t worry about a perfect record or being a brilliant stock pick.
Make a dollar. Keep a dollar. It’s that simple.
You Need A Plan To Keep A Dollar
My friend Roger Scott understands this concept well. Not only does he use rules-based systems to take profit and cut losses, but he builds hedges into his system.
Whenever he enters into a position, he understands there’s the possibility that bad news might hit the stock, a presidential tweet might rock the market or something else he can’t foresee will happen.
But since he knows that, Roger do something about it.
His Momentum Factor system, for example, use long-dated bonds as part of his strategy. When the market pulled backed back recently, he was able to collect a massive 588% payday.
So instead of losing money when the market collapsed, he made a nice profit.
If you trade stocks, I recommend you check out his system. It’s perfect for today’s market.
This article is supplied courtesy of BookerWealth.