Posts filed under ‘market new’

12 Action Steps for Better Trading or Investing in 2015

Success is the achievement of something desired, planned, or attempted.

What does that mean for your trading or investing?

Desire is something we want, wish or long for. As better we can formulate or visualize the desired future situation/result, the easier we can strive for the well formulated picture:

“If you don’t know where to go, you might not get there”.

2015 Trading

We help you to formulate attainable and specific goals in twelve task-steps to better your trading or investing, with some hyperlinks to real life examples.

Our studies were conducted over many years and we want to share the essence with you:

Task-1: Use a trading system, which allows you to find trade setups with a probability for success above to read on for the detailed reasons. Back test 100 trades and forward test 10. Then strike a balance: If your current system does not deliver on this performance rate, you need to invest into a new one or take trading as a hobby, means not expecting to make money from it!

Task-2: Work with trading concepts and assets, allowing you to make money to the up- and downside in any account: If you trade from an IRA, learn options trading or add Futures to your portfolio of assets you trade.

Task-3: Trade for minimum expected returns on cash invested or margin held: 0.5% on stock trades, 30% on stock options, 5% on futures and FOREX. If your trade setup does not give you such returns: Find a different one or don’t trade. We teach the reasons why in our mentorships…click to read details.

Task-4: Find a trade frequency that suits your personal circumstances and trade: If you are a long-term investor, plan for a minimum of three trades a month and work with weekly charts. A swing trader shall work with daily charts and minimum three trades per week. Day trading is best accomplished with three trades per day on reference time-frames. Here is an example for stock traders, who knows at the opening what to trade and do this daily…click to read on.

Task-5: Never allow a single trade to produce a higher than 5% loss of your account value. To do so, define for every trade a price threshold where the original assumption of the trades is no more valid. If the necessary price threshold requires a higher risk, do not accept the trade. When the maximum risk price is reached, either exit your trade or apply methods of protection and capital preservation.

Task-6: Formulate positive trade exits, take profits, and reinvest: Constant trading and compounding interest has a much higher probability to build your desired returns than betting everything on single trade wonders. To accomplish this goal, you need a data source, which provides you with instruments ready to trade on a consistent basis: Either, you develop this on your own or you purchase a market proven trade alert service.

Task-7: Strive for constant improvement: Journal your trades; check and balance which situations worked and which not, take feedback from a coach, adjust and improve your trading.

Task-8: Have a plan and trade your plan (click for an example) by formulating which instruments you trade, what time frames you trade them on, how you trade them to the up- and downside.

Task-9: Treat trading as a business: Set your trading or investing up, so you are treated and taxed as a business. Work for yourself and make your money work for you without getting distracted by other life circumstances. Have the technical capabilities (computer, broker, charting, data lines) in place, which are required for participating in the markets you want to be present in. Check our Kindle

Task-10: Prepare for trading or investing: – Those who fail to prepare, prepare to fail – It is essential to know the key events for the instruments you are trading: Earnings announcements, news announcements, economic news on a worldwide basis (click for an overview): Limit the risk of holding an investment without protecting yourself at such critical times or being in a trade where news can trigger excessive volatility, which potentially is taking out your stops, even so the market goes in your desired direction.

Task-11: Mental preparation: – Let the market guide you – Put your desire to trade or invest away and allow yourself flexibility by not trading when there is no market movement and increased trading when the markets allow. Build yourself the mind and inner constitution by controlling your emotions and desires so you can make conscious decisions, which allow you to apply your trading principles.

Task-12: Educate yourself: – An investment in knowledge always pays the highest interest – Be trained at what you trade and add new skills, new understanding, new visions and strategies that allow you to stay and move with the markets, giving you the flexibility to trade or invest in various instruments and asset categories.

Happy Trading for 2015


January 5, 2015 at 3:49 pm Leave a comment