"Take control of your financial future! Now is the perfect time to evaluate your investing performance and resolve to take a more businesslike and systematic approach to trading so that you are well prepared to maximize your profits during the next bull market!"
Successful trading is simple but it is not easy. In order to be a profitable trader you need to follow these steps:
1. Find a market that is trending.
2. Determine a suitable entry point.
3. Enter a buy order, along with a stop loss that controls the amount of money you are willing to lose.
4. Hold on to the position until the trend ends, at which time you sell and bank your profits.
If this is all that is required to be a successful trader, then why do the majority of traders lose money?:
1. They do not have a written, systematic, rules- based, trading strategy that has been backtested to confirm that the strategy has a positive expectancy and will make money.
2. Once they have a backtested the trading strategy they become too emotional and do not consistently execute their trading plan day-in and day-out.
The 6 TRADING RULES A PROFITABLE TRADING STRATEGY MUST INCLUDE:
TRADING RULE #1 – Market Portfolio
The first step in developing you trading strategy is to identify a diversified portfolio of markets that you will trade. Your portfolio will include equities, bonds, commodities and currencies.
TRADING RULE #2 – Identify Potential Trade Set-ups
The next step is to identify the specific filter criteria that you will use to identify potential trade set-ups for the strongest trending markets within your market portfolio.
TRADING RULE #3 - Entering the Trade
Once you have a watchlist of potential trade set-ups you will need to identify a clear trigger that you use to enter the trade without second guessing the decision.
TRADING RULE #4 - The Stop Loss Exit
Before you enter any trade you need to define the price in which you will get out if the trade does not go as originally planned. You need to accept the reality that you be wrong more than you will be right.
TRADING RULE #5 - Money Management
Money management is the most important component of your trading strategy. Money management defines, before you enter the trade, how much money you are willing to lose if your trade does not go as planned.
TRADING RULE #6 - The Profit Stop Exit
Once you are in a winning trade you need to resist the urge to sell your profitable positions and let the trade continue so you can capture as much of the trend as possible. This will ensure that you trading strategy is profitable.
We practice what we preach! Our Voodoo Trading Strategy is built around the philosophy that the key to long term trading success is developing a trading strategy that is rules-based and systematically executed. Our strategy is traded with real money. Get started building your own Trading Strategy and see if you can beat our performance!
