I took a few days off over the 4th and drove up to my summer home in Maine. This trip was both to have a break and to see my children, my first grandchild and my New Zealand son-in-law, who was visiting here with my beautiful daughter. During my stay, I decided to charter a fishing boat and a fishing guide, to take the kids fishing to catch some "stripers" or "rockfish" as they are known in Maryland.
I put some time into finding a really good fishing guide, one with a proven track record. I found a great Captain who had the track record and the right credentials, so we booked a half day fishing trip. Now, we were all ready to have some fun and catch some fish. The next day we set out at 6am with high hopes of having fresh cooked "stripers" for dinner!
Sound like a classic fishing story, but after several hours of fishing and nary a bite, I started thinking that trading is a lot like fishing … there are no guarantees.
Before I lose you all at this point, let me explain what I mean by that statement. Just imagine that you have the best equipment and a top notch fishing guide, you know the fish are out there, but for some reason, that only a fish would know, they are just not biting. It gets to be a little frustrating.
Now, change out the best equipment and fishing guide for the best technical tools and trading system and you can understand why not every trade you make in the market can be a winner.
Just like there are guides for fishing, there are guides to successful trading. First off, you must remember that not every trade you make is going to be a winning trade. There is not one trader I have heard about that can say that every trade they have ever made was a winning trade. The good news is, you don't have to be right on every trade to be considered a successful trader. The bottom-line is if you follow these sound money management principals you can still make money:
1. Have a Game Plan.
2. Trade with the Trend.
3. Always use Stops.
Learn about several other key guidelines, plus see an example of my own Game Plan in this free PDF.
By the way, my son-in-law did catch one "striper", unfortunately it was too big to keep. The fish in the picture with my son-in-law was 3 inches too long according to the Captain's scale and the fishing regulations here in Maine. The bad news was we didn't get any fish that night, but the good news ... we had freshly caught lobster for dinner :-).
Here's to your future success!