You are here because
you read or heard about someone who has “made a killing” in the market. Or
you have been lured to the stock market by the promise of easy money or
quick bucks. Maybe you hate your job and want to trade from home for a few
hours in the morning and spend the rest of the day sitting on the beach or
some other fantasy.
If that’s why you are
here, you are at the wrong place. Just drop me line and I will send you a
list of web sites that promise quick fortunes. Quick large profits happen
as often as winning a state lottery. It can happen…it just usually happens
to someone else. And lotteries can’t be relied upon to bring in a monthly
Ask yourself – How good
a trader are you? How’s this for a statistic. Over 70% of people trading
less than 1 year consider themselves good traders. However, 95% of those
same traders were losing money. And over 90% within 1 year of starting to
trade will quit trading out of disgust or loss of money or both.
Too many traders enter
the market without the proper tools. They fail to use the appropriate
systems and methods to trade. The market no longer need be the domain of
the professional trader. Traders who have the time, capital, persistence,
motivation, knowledge and methodology will succeed. We are going to give
you the techniques and systems that the professional use.
Not As Easy As It
The ease of purchasing
stocks has given the impression that trading is an easy way to make a
living. All you need is to open a brokerage account, fund it, and find a
method of trading…and most new traders wonder why cash is not rolling into
their bank accounts. Most of us when purchasing a car or house do
research, check some buying reports and agonize for weeks before the
purchase. Most people buy stocks on a whim or just a recommendation and
then watch their non existent profits dwindle away till all that is left
is a loss. If you do not do the proper work, you losses will be someone
1) Read through the
2) Try trading a real
system. None of this touchy feely stuff – I think my stock will go up or I
heard on CNBC… In spite of the money the Wall Street analysts make; they
have no clue if and when the market or a stock is going to rise. I discuss
this more in the sections in the Beginnings. Making money in
the market is strictly a percentage game. You are going to win a
percentage of trades; you are going to loss a percentage of trades.
Period. If you can minimize the losses in bad trade maximize the profits,
you will make money.
Try using the the 3 Day
Hammer. It works and many traders use it either as a stand alone
system or with other indicators.
need is one pattern to make a Living! Learn first to specialize in doing
one thing well.”
-Linda Bradford Rashke
3) Practice and
stick with one system. I recommend you practice trading on paper
for a short trial period, so you see for yourself how the system works
before you start committing real money. Once you see how you trade in
theory, start trading in real markets. The key is not necessarily what
system you use or how much capital you start with. What matters is that
you start, and that you stick with the system.
4)If you don’t
want to follow a plan, you will eventually be throwing money away. There
are a zillion great systems out there that you can create, borrow or buy.
The 3 Day Hammer has paid my bills. It works, but only if you stick to it.
I’m going to end this
section with a few pros and cons of trading.
Trading an be very
Pro. Trading with the proper techniques and skills
can make money. It is one of the few ways that a small sum of money can
become a fortune.
Con. The majority of people who trade will not
make money. Most will lose money. But most traders do not have a good
You do not need
large sums of money to trade
Pro. Absolutely true. But…the odds of success are
correlated with the amount of starting capital. The more you begin with,
the more likely you odds of success.
Con. If your starting capital is small and you do
not use great money management and risk reduction techniques, you will
be eliminated after a few losses.
creates trading opportunities
Pro. The greater the market and stock volatility,
the greater the opportunity for profits.
Con. If you do not have the proper skills and
techniques, you will become trading road kill.
Pro. If you work hard, put in the effort and
acquire the skills, trading can be very profitable and you can live the
Con. It does require effort and work. You are
competing against some of the smartest capitalists on the planet.