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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 20 October 2006 Table of Contents (1) Quote on the Truth (2) Article - The Truth about Trading - Part 1 (3) Trading Plan Workshop (4) ATAA Presentation - Melbourne - 26 October 2006 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Stay up to date with all that is happening at Trading Plan, by subscribing to our 'Trading Blog' (no email address necessary). I am continually adding content and every update of this site is announced here, including minor content updates, page additions, and product releases. So stay plugged in by subscribing to this site's RSS feed. Copy and paste the address below into your RSS reader to receive the Trading Plan RSS feed... http://www.trading-plan.com/Trading-Plan.xml Not sure what RSS is? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Previous Issues Only just joined the mailing list? That's OK - you can read all of the previous issues of the Trading-Plan ezine. Visit http://www.trading-plan.com/ezines_previous.html to access the archive. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Online Trading Forum Do you want to learn from the experiences of others in a friendly online trading forum? I now frequent and contribute to the online trading forum called Stock Meeting Place. Membership is easy and free. You can come along and ask any trading question in one of the numerous sections of the forum and receive a helpful response from one of the many members (approximately 2000). This forum is the only place online where you will also find Daryl Guppy, the well known trader and author. Remember, there is no such thing as a silly question so visit, sign up and ask a question. Visit http://www.trading-plan.com/trading_forum.html for more information. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ -- 1 -- Quote on the Truth "All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident." Arthur Schopenhauer (1788 - 1860) -- 2 -- The Truth about Trading - Part 1 If you expect to read this article and find the truth about how to make money as a trader then think again. Why would an article like this give you such information? Why would somebody share with you everything they have learned through years of blood sweat and tears as a trader, all for free? The simple truth is that they would not and neither would you. In all my years of doing this work I have never yet come across any really useful information for free so get used to it. The trouble is that there is so much out there that looks like something for nothing. There is a massive market of so called education but if you think for one moment that you can learn how to actively trade by becoming a freebie junkie then you really deserve all you get. This is one of the truths of trading and like most truths it probably hurts. Tough love. If you want to take serious money away from the strong holders then you must understand that you are going to have to commit incredible resources of intellect, time, dedication and money to your venture. If you are not prepared to do this and just want an easy ride then you will just end up like the thousands of people who regularly spread bet their way to financial oblivion. You will become yet another weak holder, always playing at the market with your silly little 1p bets spurred on by the might of the get rich quick marketing machine. You will be convinced that you can at least double your money year on year with no more than a few minutes online each evening as you relax after a hard day at the office, playing the equivalent of your global financial computer game. The truth is that real trading, consistent year on year profitable trading, is nothing like this. You can’t play at it, you have to learn and master it. You have to have a very clear idea of your expectations and develop these into a concrete plan of action which you then execute. There is nothing haphazard about profitable trading. Now there is no doubt that good traders do make serious money and you can be one of them. Trading is a universal opportunity; it is open to anyone and everyone, regardless of background, educational achievement, gender or race and regardless of your reasons for wanting to do it. Traders also enjoy a level of independence that would be hard to find in any other business. They are totally self reliant and above all they know that if their financial goals are to be achieved they cannot rely on anyone else to achieve them. They are on their own and they go about achieving their financial independence with ruthless efficiency. The business of trading is one of the most enjoyable and lucrative ways to earn a money, it has huge advantages over the alternatives and it certainly beats working for someone else! But without a complete understanding of all the steps involved in setting up and running a trading business you are going to fail. You will forever remain a weak holder always handing your money over to the strong holders. You are going to lose money you cannot afford to lose. You will attempt trading, fail and then decide it was not for you in the first place. You would be wrong. Why are you going to fail? Because you will end up doing like everyone else does and jump in with both feet while believing the nonsense that is written about easy money. The main reason that new and inexperienced traders fail is because they focus on the trading element and ignore the business element, failing to realise that the two are mutually dependant. Think about it, all you probably want to do right now is get started and find a method that works so you can start placing trades. The whole market is geared this way, yes this stuff about planning is boring and hard to see the reason for but ignore it and it will sooner or later cost you money. Time after time I meet traders who have launched themselves in to the markets in this way, usually after attending a few free seminars and using methods begged borrowed or stolen from someone else. They have no plan, no idea what they are trying to achieve and absolutely no idea of the rules of their new profession. They are badly financed, ill-advised and perfect game for a market that specialises in taking money from the weak and giving it to the strong. Sooner or later the people in this position will give up having lost large sums of money in the process and unless you take notice of this article you will be one of them. The sad thing is that it does not have to be this way. With the right attitude and a willingness to learn the rewards are there for the taking. You can have all the rewards you desire but only if you understand and accept that you must ignore most of the marketing hype and concentrate on the facts. No matter how many hours a week you intend to trade, whether you see it as a serious hobby, a part time occupation or a fully fledged business you need to approach it in a businesslike manner. Once you set foot in any market you will be dealing with a ruthless and efficient entity that cannot wait for the next sucker to come along. If you are already in the market you will no doubt be hurting from some of the losses you have sustained already. Don’t be that sucker, make a commitment now to change the way you think about trading and accept that there are several realities that must be taken on board if you are to stand the slightest chance of making it. If you can’t accept these facts then save yourself a lot of stress and money, do something else. Steve Anderton, co-founder of Tactical Trader, is recognised as a highly profitable private trader who came from the ‘outside’ and made trading work for him. Trading for a living was a major career change for Steve. He spent several years researching the whole spectrum of activity before developing, testing and perfecting his own unique methodology. His website is www.tacticaltrader.com
-- 3 -- Trading Plan Workshop With anything in life, preparation is a key to success. Trading is no exception and time spent on developing your trading plan is time and effort well invested. "Give me six hours to chop down a tree and I will spend the first four sharpening the axe." The Trading Plan Workshop - an online course which leads you through the mindset, money and method to develop a trading plan - a must if you want trade profitably over the long term. "The questions so far tackled seem to be of paramount importance to a successful trading future. I am very happy with the material so far covered." In 'The New Market Wizards' by Jack Schwager, Howard Seidler said it best when he stated, "In regards to being successful in the markets, I think the single most important element is having a plan." This course goes for almost 3 months with over 40 messages sent every two days. You are able to send me your answers along the way for a personal review and comments. At $197 USD, this is most likely less than your next losing trade. I have been humbled by and appreciative of the comments I have received from people working through it, which include: "There is an absence of hype. In working through it there is a sense of integrity; one of its biggest appeals for me is that there are no outlandish claims. It takes a practical commonsense approach, carefully explaining every step along the way; providing sufficient links to provide greater detail and explanation on the major concepts and topics." "Indecision, fear, lack of confidence & so on; you have named them all & in your workshop plan have set forth means of rectifying them." "This workshop is not about any GRQ scheme - as far from it as you can get actually. What it does is teaches you the most important aspects that will allow you to survive and then thrive in the markets." Please visit http://www.trading-plan.com/trading_plan_workshop.html for more information. -- 4 -- ATAA Presentation - Melbourne - 26 October 2006 I will be presenting at the monthly Australian Technical Analysts Association meeting in Melbourne on 26 October 2006. The topic of my presentation will be 'Developing a Trading Plan', and further details are available at www.ataa.com.au This is available to members only, however non-members are invited to attend a monthly meeting before joining - with no obligation to join. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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