Your broker will offer freebies as part of

your business relationship with them

MethodologyRisk Management Trade Psychology

Method used to find trading setups is the

least important variable of all

Risk management and psychology are their biggest assets

TAKE ACTION

STAGE 1: FIGURE OUT YOUR REASONS FOR WANTING TO

DAY TRADE

By not losing the forest among the trees

ONE TRADEIs meaninglessUnless you used horrible risk parameters

Learn to take internal ownership of the

trading methodology

You will not trust your edge and will

intervene in a trade (based on emotions)

STAGE 2 - ACCEPT HOW YOU MAKE MONEY TRADING

Why?

You must have faith that you've seen an edge in your system

Manually back test!

Most Consecutive Losses Largest Draw Down Period

You should be thinking, "Wow! This really does work."

You are beginning to accept.

You are beginning to believe.

You are beginning to take internal

ownership of the system

Rome wasn't built in a day

SUCCESSSHORTCUTS

STAGE 3 - PRACTICE MAKES PERFECT FOR

BEGINNERS

Perfect your craft

You are reinforcing & perfecting your knowledge of your

trading rules

Sim trade for a few weeks

This is the time you will feel you are ready to

start trading with your live account.

Not Yet

“Secret” tip coming….

Commit to taking 25 consecutive

mistake-freetrades in your sim account

A mistake can be anything including:

Execution errors2 nd guessing

Moving your stops and targets outside of your plan

Missing an entry

Not adjusting around a key level, etc.

We call this the "Power of Quitting“

www.slideshare.net/NetpicksTrading/trades-should-quit

Don't shortcut this process

STAGE 5 - IT'S TIME TO START DAY TRADING LIVE

We make money based on the edge of

our system

Losing trades and money is part of

getting back on the winning side

You've seen that emotions play a huge

part in trading

Lean on your system and take your trades,

because that IS the only way to continually make

money trading

25 mistake-free trades is a stepping stone to

consistency!

This is real money now

STAGE 6 - MONITOR TRADE STATISTICS AND TWEAK YOUR

TRADING PLAN

Establish prior day's ending balance and

use that to determine what a 2% risk is

COMPOUNDINGWORKS!

Back test other markets and time

frames

We need to keep a higher perspective by not focusing on just one or two trades

We MUST sacrifice 1/3 of all of our trades to get to the 2/3rds that satisfy our reason for trading.

Losing?

Take a step back. Re-evaluate.

Go back to Stage 1.