Market Traders Review

The Way to Trade

Short term or intraday trading can seem like an exciting game. It is certainly never boring because you’re watching your online charting screen continually, just waiting for the right moves.

Whether you’re buying and selling actual stocks, or trading derivatives such as options, futures or CFDs with a smaller bank account, the adrenalin levels are always high.

But this is how it gets dangerous. You’re under pressure and when you’re feeling it, the decision making process can become a little hazy and mistakes are easily made. Believe me, I’ve been there.

So you need a plan which you can execute mechanically and without any emotion – one which you have tested and at least know in theory will work – and you need to stick to it like your life depends on it. This is particularly the case when the stock price moves against you.

So here are some rules which I have found useful. Most successful traders will tell you, that it’s not about getting the majority of trades correct. It’s about “position sizing” (i.e. how much of your entire capital you risk on any one trade) and the discipline to work your trading plan without deviation.

1. Never let emotion, particularly the feeling of “needing to do something today” influence your decision to take a trade. Over-trading is a killer.
2. Keep a balance between your trading and personal life and don’t let any problems from one interfere with the other.
3. Trade with the trend. This includes lining up the intraday expectations with the overall daily trend. It is wise to sometimes wait until the market has been open for 10 – 15 minutes before entering the trade.
4. Never risk more than 10 percent of your overall capital on any one trade. An even better guide, particularly if you’re trading derivates, is 4 percent.
5. Better not to aim for the exact highs and lows of the market, but accept something short of each. This way, you are less likely to miss the profit you could otherwise have taken. Better to take a smaller profit than turn it into a loss.
6. Work a proven system that aims to make two to three times as much profit on your wins as you accept on your stop losses on  trades that go bad. Combining this with position sizing will ensure you don’t blow your capital and will allow you to make more mistakes and still make an overall profit.
7. When your position is running at a profit, raise your stop losses to at least break even level (include brokerage fees), to lock in what you have achieved.
8. When in doubt, if you have a gut feeling that you’re not 100 percent sure, always stay out – or if you’re already in, get out.

How to Invest in the Stock Market

The Way to Trade

How to Invest in the Stock Market – The Way To Trade by John Piper is simply dynamite.

No matter if you’re:

• Trading indices, stocks, e-minis, commodities, options or forex
• A beginner or fully experienced trader
• Day-trading, swing trading, position trading, trend trading

Whether the market is up or down… How to Invest in the Stock Market – The Way To Trade will revolutionize your trading. As you study every word of this 273 page e-book, you’ll be astonished you survived without it.