3 Ways To Improve Your Trading This Summer

As traders, we are always looking for a trading edge, but sometimes we can overlook the big picture and miss how we can change some fundamental ways in which we approach and make trades.

For myself, one of the key elements is to be disciplined in one's trading. I must say that it’s easy to say, but, it did take me quite some time to master this skill.

Often you want to justify your position, and you listen to someone else who thinks the same way you're thinking, even though you both could be wrong on the trade. When you follow that line of thinking you are doomed, as you tend to keep pointing to the other person and use them as a crutch for a trade that has gone bad. This can create bigger and bigger losses for your account so, much so that it freezes your brain to the point you can’t see other market opportunities. It also gets to the point where you say to yourself, "I’ve lost so much money I can't get out now." This is not the attitude to have if you want to be successful. The good news is there is an easy cure for that, and you must follow it if you are going to be successful.

The one easy cure for this is using stops in the market.

I used to listen to Ron Popeil pitching the Ronco 4000 Showtime Standard Rotisserie on TV and the keywords he always used to say after you put the chicken is was “Set It And Forget It."

I'm not sure if Ron Popeil ever traded in the markets, but his concept of “Set It And Forget It” can be applied to stops. Simply enter your stops and leave them there until either you are stopped out, or you have taken a profit on the position.

You can still take a profit on a position even if you get stopped out… You simply keep moving your stops up as the market moves higher. Doing so helps you lock in a profit when the market reverses. So use Ron Popeil’s “Set It And Forget It” philosophy for your stops. It could be the difference between eating chicken and having nothing to eat.

The other key thing to trading is to trade Continue reading "3 Ways To Improve Your Trading This Summer"

My 10 Golden Rules of Trading

Even though 2014 has just begun, so far it has been difficult and frustrating for most investors and traders. One only has to look Apple's (NASDAQ:AAPL) recent performance as a prime example of how 2014 is going to be a very different year from 2013.

Today, I want to share with my "10 Golden Rules of Trading" that never go out of style. Why? These rules are the universal truths of the marketplace. To ignore them you could be condemning your portfolio to failure.

While I did not invent all of these rules myself, I did discover them the hard way. My discovery was painful, expensive, and brutal as I made practically every mistake in the book, before finding success in the markets.

Incorporating these "10 Golden Rules of Trading" into your own strategy can help you down the path to success in the markets.

1) Have a Game Plan - Figure out why you’re getting into the market and, more importantly, how to get out if you’re wrong. Continue reading "My 10 Golden Rules of Trading"

Gone Fishing

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. Continue reading "Gone Fishing"

The Biggest Mistake You Can Make In Trading

One of the biggest mistakes we see with traders and investors is this:

They have no game-plan.

This is one of the most important elements in trading and you should not be trading without one. When you have a game plan, it allows you to get in and out of the market in a non-emotional way. So often we see traders jump into markets based on emotion, investment show ideas, or rumors. This is the worst possible way to trade and the quickest way to lose money.

There’s nothing more important to have than a game plan to enter and exit positions in the markets. By creating a game plan, you are setting yourself up emotionally to handle anything that happens in the market. Having a successful game plan, complete with an exit and money management strategy is enormously important. With the kind of volatility that we are seeing in the markets today, not having a game plan is like financial suicide and that is something that you don’t want to do.

Here’s How To Get Started Creating a game plan is very easy and you can do in a matter of minutes. Continue reading "The Biggest Mistake You Can Make In Trading"

Happy New Year from MarketClub

Happy New Year from the MarketClub Team

A New Year is upon us and for many, that also means changes in their trading habits, a new strategy, or implementing a new game plan. Whatever your New Year's trading resolutions are, we hope you will find the Trader's Blog to be a helpful resource in 2013.

Every Success in 2013.

Adam and the MarketClub Team