Traders from all around the world have been feeding me a steady diet of questions over the years, and they seem to be getting more and more concerned about what the future centralex holds. Many people just like you are just trying to survive in today’s markets, and they don’t know what to do.
If more people traded in line with these plans, not only do I think more traders would be surviving today’s markets, I think they’d be prospering. What you are about to read is more valuable to you than what you will find in many trading courses that you’d have to pay for.
Profit Plan #1: Become an Independent Trader
Over the years, I’ve observed that there are two types of “traders”. Now, I realize these are generalizations, but they illustrate two very common mindsets. Which one are you?
The Dependent Trader: This type of person is usually looking for the easy way out, looking to make a quick buck, or wants to strike it rich. They think it’s possible to “follow the crowd”, blindly place trades pumped out by a system that “can’t lose”, and quit their job. The bottom line is that this type of trader is dependent on someone else for their financial success – forever, for life. Yes, The Dependent Trader can be successful with this attitude, but I believe the odds of success are low (probably around 5%).
The Independent Trader: This type of person wants to have as much control of their financial destiny as possible. They understand that when they know how the markets work, they’re empowered to place informed trades without having to rely on someone else. Someone who is an Independent Trader knows they are maximizing their odds of success in the markets, which can make their financial and lifelong dreams come true that much more quickly. The bottom line is that this type of trader holds the keys to the kingdom, and has control of their financial future for their entire life, no matter what happens.
That’s why one of my goals with this report is to help make you an Independent Trader. Will this report alone do it? No, of course not. However, it should give you a “fast track” toward discovering the right way to trade the stock market for you.
Here is a typical scenario that plays out in the markets over and over again that is particularly harmful to the Dependent Trader.
The prevailing view of the Financial Media Stars, back in April, 2008 might have been that the financial related stocks (including the bank stocks) have bottomed out and are on their way up and that the worst is over for these companies. And so blasting over the airwaves are almost emotional appeals to “Buy, Buy, Buy!” the bank stocks including Citicorp.
Now on this recommendation, Citicorp initially moved up a few dollars but then abruptly stopped in its tracks and began a long slide down, dropping another 50% from the April, 2008 highs to the July, 2008 lows. At that point, it was obvious to one and all that buying in April was not a good thing to do. And right about at that time, in the midst of the July lows, what did the Financial Media Star do? He through in the towel on the financial stocks including Citicorp and said, “Sell, Sell, Sell!” But it was too late – the damage had been done. So the cry by the media to “Buy, Buy, Buy” Citicorp was too early, and the cry to “Sell, Sell, Sell” came only after a drop of 50% from the April 2008 highs; of course, much too late.
Enter the Independent Trader, who is not influenced at all by what the Financial Media Star is saying, for one thing, because the Independent Trader doesn’t even listen to or know or even want to know what the Financial Media Star is saying. Instead the Independent Trader is guided by good trading methods that he has mastered, that screen for good high-probability, low-risk trading opportunities, with precise setup conditions, entry rules, stop loss protection to limit risk, position size rules, and an exit strategy to exit trades profitably.