Why do this? Trading is a challenging business and takes much time to study and learn individual markets and patterns that form within those markets. It also requires that we learn about ourselves to be successful in the business. It is a business where good may not be good enough. Therefore it is imperative that each trader planning on success be organized and willing to put in the extra mile to achieve that.
Doing some planning at the end of each year for the coming year is one of the best tools for the trader putting themselves onto a path of success. First you have a plan and map of what you should be doing. It will outline as many market events/situations as possible and what you do at those times. Trading is a business that requires effort and planning. Complacency is not a quality that will produce an excellent trader.
Take a Professional approach to trading, as a business, because it is a business. All really good traders take this approach. Very difficult to find weak and strong areas of trading if no records are kept. Would you feel comfortable paying a professional that operates on that level? Or a doctor that has not studied what they are doing or a surgeon?
You want to continue improving what you do well and either eliminate or systematically improve the weak areas.
You are where you are and to get to where you want to go, you must have a plan.
For more information on how to create a trade plan visit the Coaching section of our website at www.tradingliveonline.com
Saturday, February 28, 2009
Thursday, February 19, 2009
Why Trade The S&P 500 Emini
I receive questions from traders who have never traded the SP 500 Emini contract before and want to know why trade that market? Most of them have been told by someone that it is extremely dangerous and they should stay away from it.
In my opinion nothing could be further from the truth. We trade the SP 500 Emini everyday in my live trading room at www.tradingliveonline.com. We use specific pattern recognition and usually trade on average 1 - 3 setups per day. Based on the patterns we trade, primarily the AB=CD pattern, we can control our risk and know where we are going to take our profit targets.
We day trade this market so everyone sleeps at night. Since the SP 500 Emini contains as an index 500 large cap stocks it removes the time consuming scanning of inidividual stocks. We don't have to worry about adverse overnight gaps, in fact we use gaps as part of our trading strategy.
For those wanting to learn a solid day trading method using a reliable vehicle i would strongly encourage them to study this market. We give a free trial so any traders interested can come into our trading room and observe our trades and then they can join our community of traders through our monthly subscription service and trade the SP 500 Emini daily.
For more information or questions please contact me at leslie@tradingliveonline.com or visit our website at www.tradingliveonline.com
In my opinion nothing could be further from the truth. We trade the SP 500 Emini everyday in my live trading room at www.tradingliveonline.com. We use specific pattern recognition and usually trade on average 1 - 3 setups per day. Based on the patterns we trade, primarily the AB=CD pattern, we can control our risk and know where we are going to take our profit targets.
We day trade this market so everyone sleeps at night. Since the SP 500 Emini contains as an index 500 large cap stocks it removes the time consuming scanning of inidividual stocks. We don't have to worry about adverse overnight gaps, in fact we use gaps as part of our trading strategy.
For those wanting to learn a solid day trading method using a reliable vehicle i would strongly encourage them to study this market. We give a free trial so any traders interested can come into our trading room and observe our trades and then they can join our community of traders through our monthly subscription service and trade the SP 500 Emini daily.
For more information or questions please contact me at leslie@tradingliveonline.com or visit our website at www.tradingliveonline.com
Sunday, February 8, 2009
Learn from your Losses - Excerpted from 'Essentials of Trading - It's Not HOW You Think, It's What You Think' by Larry Pesavento and Leslie Jouflas, Traders Press.
When you lose - don’t lose the lesson! Great words from the Dalai Lama are just as appropriate on trading. Trading is a journey – not a destination. This journey requires that mistakes will be made. The really great traders are the ones that handle these mistakes efficiently and immediately. Roy L. Longstreet, the legendary soybean trader of the 1950’s and 60’s had a saying, “The first mistake teaches – the second mistake kills”. Learning from that first mistake is so very necessary but learning to not make the second mistake is absolutely crucial.
Here are some examples of the second mistake:
1. Placing a trade that doesn’t work is the first mistake – failing to use a stop is the second mistake.
2. You are under capitalized in trading, that is your first mistake – answering the margin call is your second mistake. Margin calls tell you many things. You are wrong in market direction and you are losing almost everyday.
3. You begin trading with no knowledge or trading plan that is your first mistake – the second mistake is that you continue t trade knowing fully that you do not know what you are doing.
Trading is a business with an easy entry. All you need is money to open your account. No one would buy a business with out first checking it out. Trading is an exception because the magnet is greed, the idea of “easy” money. How much can I make is what most people are thinking of when they enter the markets. If they thought “How much can I lose” the entrants into the markets would be far less!
When you lose - don’t lose the lesson! Great words from the Dalai Lama are just as appropriate on trading. Trading is a journey – not a destination. This journey requires that mistakes will be made. The really great traders are the ones that handle these mistakes efficiently and immediately. Roy L. Longstreet, the legendary soybean trader of the 1950’s and 60’s had a saying, “The first mistake teaches – the second mistake kills”. Learning from that first mistake is so very necessary but learning to not make the second mistake is absolutely crucial.
Here are some examples of the second mistake:
1. Placing a trade that doesn’t work is the first mistake – failing to use a stop is the second mistake.
2. You are under capitalized in trading, that is your first mistake – answering the margin call is your second mistake. Margin calls tell you many things. You are wrong in market direction and you are losing almost everyday.
3. You begin trading with no knowledge or trading plan that is your first mistake – the second mistake is that you continue t trade knowing fully that you do not know what you are doing.
Trading is a business with an easy entry. All you need is money to open your account. No one would buy a business with out first checking it out. Trading is an exception because the magnet is greed, the idea of “easy” money. How much can I make is what most people are thinking of when they enter the markets. If they thought “How much can I lose” the entrants into the markets would be far less!
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