 |
|
Before you begin we would like for you to have a free copy of our 34 page Chart Pattern Secrets 2007 trade results. Chart Pattern Secrets is our 63 page report produced in Adobe.pdf format. You can "RIGHT CLICK" the following link and select "SAVE" or "SAVE AS" to download the report to your computer. CLICK HERE to download your free copy!
VTU Five Day Email Course Online Day 2: Develop A Trading Plan
Thank you very much for signing up for my Five day email course. It's designed to give the complete beginner an overview of how trading works and how to take advantage of part of the millions of dollars made each day! I also want to emphasize that there is much more to learn than what is in this introductory course. You should consider getting my full How To Succeed Trading Commodities course where I show you exactly how to trade based on my own successful trading career. How To Succeed Trading Commodities is also much more than just words on paper. I give each student unlimited email support with me to help them get started trading with minimal mistakes. This part of my dedication to my students is invaluable because I will help you avoid many of the common mistakes that beginners and not yet successful traders make. These mistakes cost you money. In fact, just one mistake can cost you way more than the cost of my course! So don't ignore this part of my service to you. Day 2: Develop A Trading Plan Hello Trader Friend, I hope today's email finds you in good
spirits. I'm going to get right into today's lesson because I'm very excited
about giving you these insights. Today's lesson is most certainly the most important lesson
in the entire course. In fact, it is so important that I wrote an entire 100
page E-Manual called “Developing A Winning Trading System” that details
every step to follow that almost guarantees your success in this business! Did you know that 90% of the traders who trade commodities
and fail did not have a trading plan! Did you also know that EVERY successful
professional trader has a trading plan! What about McDonald's Hamburgers and WalMart? Do you think
they have a business plan? Of course they do, or they wouldn't have ever been
successful! Sorry Friend, for being so blunt, but I wanted to drive
home the fact that you MUST realize that whether you have a trading plan or not,
is not an option; you must have one! It's beyond the scope of this email course to teach you
everything you need to know about developing a trading plan (remember I wrote an
entire book on the subject), but I'm going to lay out the ground work for you by
stressing the important steps. Both my How To Succeed Trading Commodities course
and Developing a Winning Trading System E-Manual will walk you through each step
with ease. The very first thing to realize is the fact that commodity
and stock traders are speculators. By that I mean we have no idea where the
price of a stock or commodity will be from one-day to the next. Many would have
you think that they can, but believe me they cannot! No one can foretell the
future. However, we do have methods of analysis to give us a good
idea of where prices may be headed based on historical price patterns. But
again, we are only speculators. Therefore, trading is a psychological battle. Traders who
enter the markets without a mechanical trading plan in place are going into
psychological warfare every day with themselves, the markets, and other traders.
They begin to worry about a position as soon as they put it
on. They start asking for advice from their broker, trading forums, etc. They
end up baring more losses than they should praying that prices will turn back in
their favor (Hope.) They end up holding profitable trades too long until they
turn into losses (Greed.) They do not enter high probability of profit trades in
fear of being wrong (Fear.) Talk about a psychological roller coaster ride! If you
trade like the above and let Fear, Greed and Hope control your trading, then I
can guarantee you that you will fail. And you know Friend, it's really easy to avoid those
mistakes if you have someone to show you how. I'm going to list below the most
important elements of a successful trading plan, and remember that our goal is
to have a mechanical trading plan that keeps as much of our thoughts out of the
picture. 1. You must decide
how you want to trade. I teach several ways to trade giving my students a
choice to find a method that makes then feel comfortable. This is an important
part of the plan. I use bar charts to make my trading decisions then I trade
both futures contracts and options. 2. Your plan must
have a mechanical signal for getting you into a trade. 3. Your plan must
have a mechanical signal for taking profits and adding contracts or options to a
position. 4. Your plan must
have a money management stop out point for each trade if prices go opposite from
your analysis. Remember the corn trade from yesterday's lesson when we
thought the market was going higher but prices went lower from $3.00 instead. We
must provide a “stoploss” order at the time we enter a trade to stop us out
for a small loss based on our account size. There will be losses, but we must manage them quickly to
insure that we are around to enter another trade. Just four steps will insure that you succeed. Of course,
settling on a specific trading plan does require work but it's not difficult. I can't imagine anyone trading without a
trading plan, but they do. And since they insist on doing it, I'll show you ways
in the next two lessons how we can take advantage of that fact and make
thousands of dollars in the process.
Happy Trading,
| ||
|
Disclaimer and Disclosure of Risk Statement All traders should understand that trading in the futures and or options markets is not for everyone. All traders should understand that there is substantial risk of loss when trading futures and or options. All traders should carefully evaluate whether trading in the futures and or options markets is appropriate for them, as such trading is speculative in nature. When trading futures, traders may sustain losses which may exceed their margin deposits. Option purchases may result in the entire loss of premiums paid for such options. Past performance is no guarantee of future success. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. |
 |
