AVOID THESE 6
TRADING SNAFUS
Increase ROI & Decrease Loss
For The Money Minded Traders
TBLTRADERS.COM
- Focus On The Bottom Line

TABLE OF
CONTENTS
i. Snafu #1… Trading with out a plan
ii. Snafu #2… Fear of Losses
iii. Snafu #3… Trading As A Business
iv. Snafu #4… Market Timing
v. Snafu #5… Having Unrealistic Expectations
vi. Snafu #6… Bad
Money
Management/Poor
Diversifica6on

CHAPTER
Snafu #1
No Trading Plan ???

Trading Plans 101
When
the
trading
bug
first
bites
you,
you’ll
learn
very
fast
that
even
the
smallest
misstep
can
be
costly.
The
highs
of
the
risk
along
with
the
chase
of
the
next
big
bubble
creates
desperado
style
traders.
Today
we
will
provide
you
with
the
6
most
common
trading
snuafus
to
avoid
while
treading
the
markets!
Snafu
#1…
Trading
Without
A
Plan
• Any
successful
business
requires
a
thorough
business
plan
to
succeed
and
the
same
goes
with
trading.
Having
a
trading
plan
ensures
that
you
follow
guidelines
which
create
rules
in
order
to
avoid
disasters.
When
you
invest
in
an
instrument,
you
have
just
invested
in
your
business
so
you
must
treat
your
trading
as
a
business
and
I
can’t
stress
enough
the
importance
of
trea6ng
it
as
business.
Let
start
with
the
basics
of
a
trading
plan
and
what
it
consists
of:
• Goals:
How
much
would
you
like
to
gain
per
week,
month,
and
year?
What
is
it
geared
toward?
Day
trading?
Re6rement?
• Risk:
What
is
the
minimum
risk/reward
you
can
accept?
I
am
willing
to
risk
$2
for
a
poten6al
of
$5.
You
should
know
your
tolerance,

• which
goes
hand
in
hand
with
your
overall
trading
capital.
You
need
to
assess
your
capital
and
determine
how
much
risk
you
are
willing
to
put
into
any
given
trade.
• Fundamentals:
Don’t
get
into
any
trade
with
out
know
the
ins
and
outs
of
the
company.
Ask
yourself
when
is
earnings?
Along
with
using
technical
analysis
for
paTerns
on
different
6me
frames
on
charts.
• Trading
Logs:
Have
a
clear
form
of
record
keeping.
Always
create
your
logs
as
if
someone
else
was
going
to
review
them
so
that
they
are
organized
with
winners,
losers
and
the
when
and
whys.
This
will
in
the
long
term
increase
return
of
investment
and
that’s
the
boTom
line.
If
not
you
might
as
well
go
to
a
casino
and
gamble
your
money
away.

“."Know
when
to
fold
'em!"
by Kenny Rogers
”Snafu
#2…
Le@ng
Fear
Reign
Supreme
(a.k.a.
Emo6onal
Trading)
Let’s
face
reality
right
now
if
you
are
trading
in
any
market
you
will
have
loses
and
anyone
who
tells
you
different
is
lying
to
you
and
insul6ng
your
intelligence.
You
shouldn’t
fear
a
lost,
managing
losers
is
key
to
bigger
profits.
You
ask
how?
Simple
as
cu^ng
your
losers
faster
and
less
o_en
increases
your
profit
poten6al.
As
long
as
you
have
a
good
management
on
losers
at
the
end
of
the
month
you
will
see
that
your
return
on
investment
is
greater
then
before.
Here
are
a
few
basic
rules
to
follow
and
pu^ng
your
fears
in
check:
Ø Don’t
chase
the
holy
grail
of
strategies,
which
you
can
set
it
and
forget
it
sorry
this
isn’t
a
microwave
you
have
to
be
involved
with
your
trading
to
minimize
lost.
Ø Don’t
double
up
on
trades
to
recoup
a
recent
lost
Ø Don’t
believe
in
a
magical
indicator
for
all
the
analysis
you
need
to
enter
a
trade.
Ø Learn
from
your
mistakes
Ø Leave
emoMons
at
the
door

Snafu
#3…
Not
Trading
as
a
Business
(TAB)
Many
investors
don't
recognize
the
write-­‐offs
they
can
use
when
inves6ng.
Did
you
take
a
trading
educa6on
class?
Are
you
paying
a
monthly
subscrip6on
for
a
char6ng
program?
These
all
can
be
properly
handled
on
your
taxes.
Also,
your
IRA
contribu6on
needs
to
be
taken
advantage
of
EVERY
year.
The
tax
benefits
of
this
are
amazing,
and
most
IRAs
can
be
traded
out
of
just
like
a
cash
account.
If
you
start
thinking
of
your
trading
as
a
business,
you
will
stop
trea6ng
your
trading
as
a
gamble.
Don’t
Fall
VicMm
To
Snafu
#3
Trading
Is
A
Business
and
Should
Be
Treated
As
So

Epic
Market Timing
So
many
people
have
issues
with
this
one;
market
6ming
is
one
of
those
things
you
pick
up
with
experience
and
correc6ng
all
of
the
items
we
discussed
before.
A Publication of
TBL
Is Now A Good
Time

trends
or
even
worst
you
follow
a
so
called
“Guru”
who
is
beTer
at
marke6ng
than
with
trading.
The
boTom
line
is
if
you
cant
read
a
chart
and
understand
it
to
the
point
where
you
can
teach
someone
it
you
will
not
be
taking
full
advantage
of
trading.
Snafu
#5…
Having
UnrealisMc
ExpectaMons
Inves6ng
is
about
as
complicated
a
subject
as
there
is.
That
is
partly
why
every
investor
has
completely
different
expecta6ons.
If
you
are
involved
in
low-­‐risk
funds
and
slow
moving
stocks,
you
should
have
expecta6ons
in
line
with
what
that
can
provide.
That
is
why
diversifica6on
is
so
important.
This
topic
6es
most
of
the
other
5
Snafus
together
in
that
you
can
only
move
forward
with
your
porgolio
if
you
first
honestly
ask
yourself,
"How
much
do
I
want
to
make,
and
how
much
risk
am
I
willing
to
take?"
Your
expecta6ons
then
must
be
constantly
assessed,
and
re-­‐assessed
in
line
with
the
performance
of
your
porgolio.
If
you
start
losing
money,
you
shouldn't
stay
in
the
same
investment
and
expect
the
same
return
over
the
long
haul
without
making
any
changes.
Don't
fall
in
love
with
every
decision,
keep
your
porgolio
fluid
and
look
at
it
objec6vely.
Only
you
have
the
power
to
make
changes..
Snafu
#4…
Poor
Market
Timing
You
would
be
shocked
how
much
money
you
are
leaving
on
the
table
with
poor
market
6ming.
Poor
market
6ming
is
due
to
not
having
a
watch
list
or
just
inexperience
and
not
focusing
on
what
you
should
be
looking
for
so
you
solely
trade
on

This
is
two-­‐fold,
we
are
talking
about
overall
diversifica6on
as
well
as
on
a
trade
by
trade
basis.
Proper
diversifica6on
in
your
porgolio
as
a
whole
is
of
paramount
importance.
The
fact
that
you
drink
Starbucks
every
day
is
not
enough
reason
for
you
to
buy
the
stock!
Get
familiar
with
all
markets,
sectors,
commodi6es,
and
indexes....not
just
what
you
see
commercials
for.
Ask
yourself
if
your
are
honestly
prepared
for
when
the
market
has
a
40-­‐50%
retracement
again.
A
large
percentage
of
investors
have
yet
to
recover
from
the
2008
disaster,
and
it
is
only
a
maTer
of
6me
before
the
market
goes
back
down.
Make
sure
you
have
enough
non-­‐correlated
assets
in
your
porgolio,
as
well
as
alterna6ves
to
long-­‐only
investments.
You
should
keep
money
in
various
different
areas,
and
mul6ple
different
direc6onal
strategies.
That
is
the
only
way
to
not
be
handcuffed
to
the
market
having
to
go
up
as
the
only
way
you
can
profit.
Don't
"double
down"
on
the
next
trade
a_er
a
loser
either,
that
is
a
sure
fire
way
to
have
a
huge
drawdown.
In
this
day
and
age,
there
are
more
than
enough
op6on
strategies,
short
funds,
and
other
choices
to
diversify
properly.
Cash
is
never
a
bad
place
to
be
either.
Everyone
can
make
money
when
the
market
goes
up,
but
that
isn't
always
the
case.
Have
a
disaster
plan!
Snafu #6
Snafu
#6…
Bad
Money
Management/Poor
DiversificaMon

A)
Emo6onal
trading:
everyone
has
a
different
value
of
a
dollar,
but
nobody
likes
to
lose
one.
Be
self
aware
enough
to
know
and
admit
to
yourself
if
it
is
6me
to
just
walk
away
from
the
trading
plagorm
for
the
day,
week,
or
even
month!
A
couple
of
losers
in
a
row
can
have
dire
psychological
effects
on
a
person,
and
create
a
snowball
effect
of
reckless
trading
decisions...there
will
ALWAYS
be
another
trade...don't
force
the
situa6on!
B)
Don’t
Trade
instruments
you
like,
or
are
familiar
with,
instead
of
others
you
will
make
money
with.
Just
because
you
drink
Starbucks
every
day
does
not
mean
you
should
have
200
shares!
Get
familiar
with
all
markets,
sectors,
commodi6es,
and
indexes...not
just
what
you
see
commercials
for!
C)
Proper
diversifica6on.
It
is
almost
criminal
to
have
a
porgolio
of
long-­‐only
stocks.
You
should
keep
money
in
various
different
areas,
and
mul6ple
different
direc6onal
strategies.
That
is
the
only
way
to
not
be
handcuffed
to
the
market
having
to
go
up
as
the
only
way
you
can
profit.
Think
about
your
porgolio
right
now
as
you
read
this.......and
ask
yourself
this
ques6on,
and
be
honest....."Am
I
prepared
for
a
massive
downturn
in
the
market?
Or
have
I
been
blinded
and
goTen
a
false
sense
of
comfort
by
how
much
it
has
gone
up
in
recent
years?"
A
lot
of
people
s6ll
haven't
recovered
fully
from
2008...don't
be
that
investor
this
6me
around...be
vigilant!
Have
a
disaster
plan!
D)
Investors
think
it
smart
to
hang
on
to
losers
longer
than
they
should
when
that
money
could
beTer
serve
them
elsewhere.
I
love
when
investors
say,
"It's
a
paper
loss!”
Oh
yeah?
And
that
makes
it
beTer
why
again?
Don't
ever
be
scared
to
take
a
loss
and
move
on!
E – Book Overview

The Bottom Line
Analysis
1)
Your
alloca6on......how
much
is
in
what
asset
classes,
and
where
you
can
move
money
to
minimize
drawdown
and
maximize
return.
2)
Introduce
asset
classes
you
may
not
be
familiar
with,
but
belong
in
your
porgolio
3)Lets
go
over
your
fees,
are
you
paying
too
much
to
your
broker?
4)
assess
risk
levels
of
your
investments.....is
your
risk
vs.
reward
plan
working?
5)
Assess
how
correlated
you
are
to
the
market,
for
example,
are
you
"handcuffed"
into
only
making
money
when
the
market
goes
up?
6)
Are
you
protected
for
when
this
market
crumbles?
will
you
make
money
when
it
goes
down?
nobody
has
a
crystal
ball
and
knows
when
this
will
happen.......it
is
beTer
to
be
prepared!
7)
Are
you
maximizing
investments,
costs,
and
market
losses
on
your
taxes?
8)
What
can
you
do
right
now.....today.....to
take
the
first
step
towards
maximizing
your
porgolio
and
protec6ng
what
you
have?
LOOLearn More
Allow
Us
To
Go
Over
Your
Trading
Logs
And
Pin
Point
Profit
Poten6als
and
Much
More…