Trader Education Recap | Week of 10-24-16

trader education 10-29-16

Trading Lesson #1: How to Handle the Ups and Downs of Trading Like a Pro

Day traders tend to take the credit and give blame for success or failure.

I should know. I mastered this skill early in my trading career. When I earn money it was because of my hard work and my brilliance. When I lost money it was because of a bad fill, a slow computer, an unexpected news story, bad quotes or a slow market.

If you want trading to be your career, your business, you need the truth.

Your success or failure is 100% your responsibility. You landlord or bank doesn’t care when it comes time to pay the rent or the mortgage. “It was a slow month won’t get sympathy.”

Trading will always have ups and downs, slow days, busy days and computer issues and Brexit and Greece and elections. If we want the financial freedom, we are paid to deal with it. Paid to plan for it.

We didn’t become traders to punch a clock 9-5. But that’s a good thing because we’re different.

Understand right here, right now ALL TRADERS go through a learning curve, all traders have ups and downs. It’s not just you.

I’m here to tell you- you can do this, but you need to be honest and you need to deal with adversity. Be honest about your resources and skills. Then create a trading plan that gives you a chance to win.

Deal with adversity like a professional. Read Think and Grow Rich. Trust me it will help.

trading lesson-trading podcast

Trading Lesson #2: Developing Your Trading Process into a Plan That Works for You

[PODCAST] Professional Trading-the Proven Steps

The steps to professional trading are easy to find. The challenge, is finding someone who can show you how to apply them.

Today’s podcast is for professional traders who paid their dues and are ready to create wealth…

Today I’d like to join you in that journey.

Many people, many smart, hard working folks like yourself, have chased the dream of the trader lifestyle.

You believe deep down you can get there on your own. But reality sets in after months or years of hard work and you’re still producing break-even results.

Overwhelmed is how you feel. You turn to books, friends, forums and chat rooms and yet you still can’t understand why you haven’t turned the corner. At this point big dreams are a distant goal and you have downgraded the dream to a reliable monthly income.

You’ve created a never-ending loop you can’t escape from.


Trading Lesson #3: Can You Spot a Great Trade?

Most traders don’t have criteria.

Actually I take that back. Most traders have criteria for entry signals and profit targets. But few have specific rules for quality.

“The real risk in a trade is the quality of the idea…”

A trader friend told me that in 2007. The quote became my mantra. It should become yours too.

We get so focused on the perfect entry. But what if the idea stinks? You found the perfect five minute bull flag in the middle of nowhere. How valuable is that entry?

The two charts below illustrate my point. $LMT shows one day of volatility. Prior to the gap higher, the stock price exhibited solid selling order flow. Yet many traders see this as a “great long.”

It’s not. It’s a one day momentum follow through trade. If you become a coaching student you would know this would be much further down your progression of stocks to trade.

There is great, and then you move down your list.

The second chart of $MA, shows two instances of solid buying order flow. February through April, and July through today.

Buyers show clear commitment. Until you can learn to read the tape, you will be P&L challenged.

Our next enrollment for trader coaching opens next month — >> Learn more here.

$LMT Momentum



$MA Order Flow



Trading Lesson #4: A Prop Trading Secret

The first time I traded in an office was like going to Disney Land. Watching professional traders gives you wisdom you can never get from books, seminars or chat rooms.

Watching a pro handle positions, emotions, research, game planning, winning and losing amazes you. A trading pro is like an athlete. Professionals go about their business in a repeatable fashion.

Most traders never get the opportunity to experience a professional trading floor, and that’s a shame…

Trading in a chat room with hundreds of other traders isn’t the same. The idea for today’s trading education came from a recent coaching call. The trader “knows everything,” but doesn’t understand how to trade.

He remains stuck in neutral.

Professional traders trade. And make adjustments. We expect to make adjustments. We expect to see unprofitable trades. We expect to make money over time.

We trade and adjust. We simply go about our business. We don’t obsess over the perfect entry price, or ask questions about the exact signal to exit at the exact moment.

Trading is like driving. Get behind the wheel, set your destination and make adjustments. You can’t learn by reading yourself to death. I know, I tried.

Develop your edge and trade. Don’t overthink it, but trade. Trade your ass off when ideas match your strategy.

Don’t hesitate, don’t second guess and don’t think you need to know more.

Professional traders trade. You want to earn money like a pro?

Trade like one.

Trading Lesson #5: The Cost of Learning to Trade

Trader education gets a bad rap.

We pay to learn. We all do. It’s just whether we pay with time or pay for experience.

If we pay with time, the learning cure takes longer. We need to learn from mistakes and make pivots. It’s expensive and exhausting.

If we pay for experience, if we find a mentor, we pay to shrink the cost and speed up the learning process. My good friend Rick described it this way…

“Most traders believe if they break even while learning, they aren’t paying for trading education, but they are completely wrong.

Let’s say you break even for a year. You feel close to trading success but never earn a consistent paycheck.

You feel good. You didn’t lose money. What if you had a job for $50,000 that same period of time?

A pretty conservative number wouldn’t you say? Well if you earned zero, but could have earned $50,000, you spent $50,000 to learn trading.”

What if you invested in training and mentoring? Many would say it’s expensive.

But expensive compared to what? Well…I just gave you the answer.

Enjoy this free training course.

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