YOUR FREE TRADING SYSTEM: http://www.netpicks.com/tjgiveaway1 In the words of George Michael, "You gotta have faith". Even though George was probably not a trader, he seems to understand the power of faith when you are seeking anything in life. When I say anything in life, trading success is not excluded. Of course having faith does not dismiss the fact that trading is about probabilities and your ability to have a true statistical edge in the market. But success is also a mental game (this applies to many things in life as well) where those with determination and "faith" will have a better chance of obtaining their goals then those who don't. Read more: http://www.netpicks.com/teach-trading-success/

1. What George Can Teach About Trading
http://www.netpicks.com/teach-trading-success/

2. In the words of George Michael,
"You gotta have faith".
Even though George was probably not
a trader, he seems to understand the
power of faith when you are seeking
anything in life.

3. When I say anything in life, trading
success is not excluded.

4. Of course having faith does not dismiss
the fact that trading is about
probabilities and your ability to have a
true statistical edge in the market.

5. But success is also a mental game (this
applies to many things in life as well)
where those with determination and
"faith" will have a better chance of
obtaining their goals then those who
don't.

6. I think there are three items that you
must have faith in if success in trading
is something you desire.

7. 1. You must have faith in your trading
system/method
It does not make a difference if you trade a
naked chart using patterns or a complete
trading system that includes indicators and
calculators. You must be able to execute
when a setup occurs in accordance with
the trading plan that you have established.

8. Second guessing every signal that falls
into the category of a legitimate trade
takes away your ability to execute.
If you start choosing which trades to
take and which to skip, you are no
longer trading the plan that was set.

9. Assuming the way you trade does have
a statistical edge, by not having faith
and then exercising discretion, you
take away the edge.

10. How do you cultivate faith
in your system?
The first step is to really understand
everything about the system you are
trading. You have to know at a glance:

11. if there is a setup
where to enter
where to exit
where do you get out if proven wrong

12. You have to know all of this and be
able to push the button when the
opportunity to trade presents itself.
Your trading plan must be ingrained in
you so that whatever occurs, you have
a tested way to deal with it.

13. While back testing does not guarantee
future results nor trading success, you
will be able to verify that yes, this
system has historically been a winning
system.

14. Forward testing teaches you to
implement the trading plan in the
markets of today and can help verify
that the method the system employs,
is still viable.

15. Once you have proven the system to
yourself, your job is to implement the
plan.

16. 2. You must have faith that how you
manage your account is paramount.
I use a fixed % of my account on every
single trade. The amount risk is low
enough that barring any outlier event,
I can withstand many losses before the
account draw down becomes critical.

17. Over the years, I have understood that
placing larger bets on a "sure move"
generally means I will be topping up
my account in the near future.
You should have the faith that proper
risk parameters, while using a system
that has a statistical edge, will keep
you in the game.

18. On the other side of the coin, have
faith that if you are reckless with
position sizing, you will have a short
lived career.

19. It would also be fair to include faith in
how you manage your trades in this
section. Where you exit and how you
manage your stop has a direct relation
to your success or failure.

20. Know that every time you move your
stop or take partial/full profits, that it
is the proper action to take because
over a large basket of trades, it keeps
you profitable.

21. 3. Have faith that you will succeed
There is no sense in starting anything if
you don't have the belief that you will
succeed. Your success is dependent
on your ability to follow the plan that
shows a statistical edge in the market.

22. You've done the needed work to
understand all the parts of your
trading system.
You have proven to yourself that it is a
viable trading system and now you
must have faith that you can execute
and find success in trading.

23. Over the years I have found that while
many have number 3, they have not
put in the work required to truly have
1 and 2. These are the people who
buy a trading system on a Monday and
then start using a live account on
Tuesday.

24. These people expect that a week is
long enough to truly master the
method of trading and they now
posses the execution skills needed to
take full advantage of the edge (not to
mention a complete handle on the
mental aspects)

25. All of those who have found huge
success in trading have put the time in,
failed, retooled, and tried again. Read
the Market Wizards books and you will
see that none of them became an
overnight success.

26. It took years of trading and years of
dealing with the mental aspects of
trading before they found the success
they now have.

27. Do your homework and learn your method
so well that you could teach it.
Do your testing so you are confident that
you can execute when your edge signals a
trade.
Ensure you keep one eye on your trading
account so you can withstand the learning
curve.

28. Most of all, let time and being exposed
to the market give you the experience
and competence you will need to fulfill
your dream of being a profitable
trader.