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THE FIVE IMMUTABLE LAWS OF INVESTING

  
  Education
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Be Patient And Wait For your Trade.  Many investors suffer from “action bias” or a desire to do something.  However, when there is nothing to do the best thing to do is nothing.

 Be Contrarian.  The herd is usually wrong.  The punch bowl of speculation is usually spiked with denial.  Be careful getting in when the getting is at the end.  Risk Is Permanent Loss of Capital, Never A Number.  Pay attention to valuation, fundamental, and financial risks and thus avoid permanent impairment of your capital.

Be Leery of Leverage.  Leverage is a dangerous beast.  It can’t turn a bad investment good, but it can turn a good investment bad.  Whenever you see a financial product with leverage as its foundation you should be skeptical, not delighted.

 Never Invest In Something You Don’t Understand.  If something sounds too good to be true it probably is.  If you do not understand where your money is going then don’t press the pedal ’cause the vehicle may be in reverse. 

Invest when the law is on your side; otherwise you may find yourself on the other side of the barbed wire fence at BROKE prison. 

10 Points For Successful Trading

  
  Education
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Trading Methodology:

  1. Winning system-Only trade tested systems with a positive expectancy in the long term.
  2. Faith– Your system has to allow you to trade your beliefs about the market.
  3. Risk/Reward-Never trade unless your profit expectations are greater than your capital at risk.

Trader Psychology:

  1. Discipline-You have to keep trading your method even when it doesn’t work for a given time period.
  2. Ego-Admit when you are wrong.
  3. Emotions-Trade the math not your emotions.

Risk Management:

  1.  Risk of Ruin-Never risk more than 1% of your total account capital on any one trade.
  2. Position Sizing-Use your capital at risk to understand the right amount to trade based on the securities volatility.
  3. Capital at risk: Never put more than 6% of your total capital at risk at any given time on all positions.
  4. Trailing stops- Always have an exit strategy to lock in your winners.

Better to be Profitable Than Right

  
  Education
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The ultimate goal of a futures trader should be to have overall trading success by being profitable. There is no single-best path one can take on the destination to trading success and profitability. However, there are a few general trading tenets to which all successful traders have subscribed. One such trading tenet is “losing your ego” when trading futures.

Mark Cook, a well-respected trader and trading educator from rural Ohio, for many years has stressed that traders need to lose their egos before getting into trading futures markets. He is also an advocate of survival in futures trading. One must survive in this challenging arena before one can succeed. I enjoyed listening to Mark at a trading seminar a few years ago. He even used to wear bib-overalls (with no shirt) at some of his trading seminars – just to drive home the point that trading futures is not easy and that ultimate success takes a lot of hard work.

My good friend and respected trader and educator Glen Ring also espouses the notion, and may have even coined the phrase, “it’s better to be profitable than right in futures trading.” Those who know or have talked to Glen know he, too, is a no-nonsense, no-hype trader who takes a yeoman’s approach to the business. When asked what direction a specific market “will” go in the future, Glen is never afraid to say, “I don’t know,” before he adds that, “successful trading is not a business of predictions but one of probabilities based on past price history.” (more…)

Jackpot of Life : 1 "Lucky" Options Trader Made A 60,000% Return Over The Weekend

  
Analysis, Education
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With Keurig Green Mountain trading around $51 late on Friday, one “hopeful” options trader decided it was an opportune time to buy 99 $60 call options (controlling 9,900 shares or around $594,000 worth at the strike) which unless something miraculous happened would expire entirely worthless within a week. Well… a miracle happened over the weekend, CMGR was bought at a 78% premium and that “lucky” options trader cashed in his lottery ticket with a 60,000% return.

With a strike requiring a 20% gain in less than 7 days… seems like a very lucky last-minute winning buyer of this lottery ticket.

What is the ONE Thing That is Required to Become a Successful Trader?

  
Analysis, Education, Video
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Kathy Lien and Boris Schlossberg wrote a great book called Millionaire Traders.  It is an interview with several successful at-home traders from around the world and how they are able to make a living trading their respective markets.

I was watching this YouTube video and one thing really stuck out during the course of the video.  It is the one thing that Boris found was the key ingredient that all of these traders had in common that made them successful.

Is is a certain trading strategy?  Maybe they all trade a certain market?  Nope, click below to find out what that one thing is.

101%……….Don’t miss to Watch !!!

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