Dumb Mistake - Secrets to Success

Today I simply made a very dumb mistake that lead to my demise on my trade for today.  Instead of placing a buy order, I placed a sell order and got in to the trade in the wrong direction.  Oh well.  I think I have learned my lesson.  At least I had my stop loss in place, which kept me from losing much more.

I meet with people over and over again regarding Market Mover Trading.  In each meeting we discuss the likelihood of success using the MMT program (information and eduation they provide).  Without fail, every time the question arises about the propensity to lose a lot of money if the trades go wrong.  Without hesitation I recommend these particular anticdotes:

1.  Prepare.  You will never be successful if you do not practice and prepare for your trades.  Simulation accounts are so very important.  They allow you to play along with the market in real time, and place and win or lose trades without putting your hard earned money at risk.  You should also prepare by watching the Trade Recaps, Instructional Videos, and Live Trade Videos.  You should also be attending Live or Archived Class every week.  Without this preparation, you will undoubtedly find yourself making blunders and mistakes that will lead to your demise.

2.  Set Goals.  Determine what it is that you want to do with your new love for trading.  Is it recreational?  Is it the opportunity to earn much-needed cash?  Is it simply a way to expand your knowledge?  What are the primary and secondary goals that would would like to attain?  What are you shooting for?  Remember, setting goals includes WRITING THEM DOWN!  A goal is not set until pen meets paper and the objective is spelled out in writing.  Otherwise it is simply a wish.  And, as the saying goes, "If wishes were fishes, we'd all cast nets."

3.  Rules.  Making, notating, and keeping rules is a very essential part of trading.  If you are rules oriented, which means you have made rules and imported them into the way that you trade, then you will be more likely to be successful in your trading adventures.  Rules help us avoid danger.  Consider driving without rules.  The results would be catastrophic.  However, even with "rules" people still get in accidents.  Bad things can happen.  However, if we do follow the rules, we are more likely to be kept safe.  Here is a quick example of some of my rules:

1. Never trade outside the scope of MMT
2. Trade only MCM trades
3. Cancel orders if they are not filled within one minute
4. Never trade after 8-10 minutes
5. Never trade more than 25-33% of my trading account balance
6. Never cancel my stop loss
7. Don't get greedy and extend my profit target
8. Never chase after a trade

The list goes on and on.  These rules help me be a MUCH more effective trader.

4.  Be Conservative.  I have several "favorite" sayings that go along with being conservative.  Many of you have probalby heard me say these before:

• Hogs get slaughtered. 
• Don't ever make the market work harder than it's going to work. 
• The market doesn't care about you.  What you want doesn't matter.
• If you want more money out, put more money in.

5.  Discipline.  Exercising discipline in all things - not just trading - can be a complex, yet extremely valuable tool in the toolbelt of life.  Discipline creates men out of boys and success out of mediocrity. 

Discipline is the "capstone" of all the items above.  It is the one thing that takes preparation, goals, rules, and being conservative, and puts it to the task.  As you grow and develop as a trader, understanding and exercising discipline will be the hallmark to your success.

I hope this post today wasn't too preachy.  I hope it helps someone.  I has already helped me! 

All the best to you today!

Kevin