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Warrior Trading : Clifford Bennett

warriror tradingThese eight steps are intended as a guide to the new trader and a reminder to the experienced.

1. Find Your Strength.  It is important that the trader determine what type of market, trending or consolidating, best suits their own personality and strength.  The best traders stay focused on one or the other and master it.
 
2. Know Your Market.  You should know your market when trading.  In other words, know the levels of support/resistance;  know how the instrument you trade moves with the general market; know who is likely to be on the other side and what they are thinking; and “the terrain of any market includes the “long-term charts” (140).
 
3.  Prepare Your Order.  Know when to get into a trade and why and know when to get out of a trade and why.  Just like a secret agent who will “never enter a room without knowing how to get out of it in a hurry” (142).
 
4.  Placing Your Order.  Once you have adequately prepared for a trade, it is then necessary to be ready to place the trade when the time is right.  Here “patience is the key…you must be able to wait for the market to tell you when the moment is right.  Wait for the market to generate the action; don’t force it” (143).
 
5.  Sticking With Your Plan.  This is probably the hardest part about trading.  Once you enter the battlefield (enter a trade), the emotions of fear, ecstasy, greed, and sheer excitement can then take over and cause you to forget your well prepared plans for entry and exit.  You must enter a “Zen-like mental state” where you remain in control of your emotions.  Not doing so could spell disaster. (more…)