Avoid Common Trading Mistakes And Make More Profit
This is Kevin Butler with Logical Trades, Inc. I'm very excited to once again bring you some information that
can GREATLY enhance your stock trading performance (don't forget to read article 1
Power Trading with an edge)
A couple of days ago I sent you an email on how to get an incredible advantage over the market by using the
amazing Power Formula revealed on my Website:
http://hop.clickbank.net/?edollars/ltrades
The Power Formula is a simple, three-step plan that creates a ~ total trade program ~ and sets the context
for all trade decisions.
But this important formula does even more…
… it allows you to avoid numerous mistakes that many stock traders make on a regular basis.
Mistakes that often mean the difference between Profit & Loss
Today I'd like to reveal two common mistakes that cost
traders substantial capital.
These traders don't realize their making a mistake; they're totally blind to their errors. And thus they
continue to repeat decisions that siphon money from their account.
See if you are making one or both of these mistakes.
Mistake #1: Always In the Game
Some traders are just addicted to the action. There's something exciting about making a trade, placing a bet.
It's called "the gambler's rush". It's the same emotional trap that snares the gambling addict.
It's the thrill of winning and the risk of losing. Extreme excitement on one hand and extreme disappointment
on the other describes the emotional feelings that control this type of trader.
But that's not the only type of trader that makes this mistake…
Some traders know that billions of stock transactions occur everyday. They know that each trading day
trillions of dollars change hands.
And they want a piece of that daily money flow. In the view of these stock traders, there is simply too much
money changing hands each day for them to sit on the sidelines.
These traders are driven by one single emotion…
GREED.
Greed drives these traders to make plays every day possible. So they can be found in the action at almost
every moment.
Finally, some traders believe that they must constantly make trades in order to make money. Emotion doesn't
dictate their approach, but rather a misunderstanding of how consistent profits are earned.
These traders believe that their money must always be working for them in order to achieve a reasonable
return. In their view, money that sits in their account, rather than being used in the market, is just "dead"
money.
In each of these cases, the mistake is "always being in the game." These traders are always taking new
positions.
Consistent, long-term success isn't achieved by constantly taking on new trade positions.
There are only certain times when the trader has an advantage over the market. There are many times when the
market has the edge.
The odds favor successful trading ONLY under specific conditions. There are only a few "optimal entry points"
when new positions should be taken.
One shouldn't invest precious capital unless one has an edge.
Exposing money in new trades when the odds favor the market is simply asking for a loss. It is a common
mistake that will quickly drain funds from your account.
There is a time to trade…
… a time to ride existing positions…
… and a time to stand aside.
Consistent profits are earned by playing the game when YOU have the advantage.
Getting your money in ** at the right time ** is critical to success.
And how do you know when the "right time" is?
How do you know when YOU have the edge over the market?
By applying the first step of the Power Formula!
And the Power Formula is revealed on my Website…
… ABSOLUTELY FREE!
Don't wait another minute to discover this important formula. It can easily change your whole approach to
stock trading.
Make the click NOW…
http://hop.clickbank.net/?edollars/ltrades
Mistake #2: All In When In
Many stock traders are not creative. They have little imagination.
Their approach to trading is characterized as one narrowly defined set of rules. They seem unable to modify
and adjust their strategy to ever changing market conditions.
Rather than being flexible, they are rigid in their approach.
As a result, most average traders have extreme difficulty in moving up to a more advanced level. And they are
doomed to a very limited profit potential.
The second common mistake illustrates this character trait.
Many average traders are either trading everything they have or nothing at all. When they're in the game,
they're all in. And when they're out, they're all out.
They will often invest the same amount of money in every trade. And they consistently expose a majority of
their trading capital no matter the condition of the market.
The problem originates from the fact that most traders don't view their trading capital as a tool.
It is.
Your trading funds are a tool, just like many other trade tools that are used to grow your account. Your
funds can be used in many ways to leverage the advantage you have over the market.
When one decides to enter stock positions, one doesn't have to expose all available capital. And in most
cases, one shouldn't.
There are only certain situations where you should be heavily exposed in trades. In most cases, you should
actually be trading less than a majority of your account.
Some market conditions may only warrant the exposure of 20% of your capital. Other situations may warrant 40%
or 60%. And others may warrant 80% exposure.
The practice of exposing the same level of capital under all market conditions is a drastic mistake.
A good poker player knows which hands to fold. And he also knows which hands to play.
But being a good poker player, he goes even further...
He knows which hands he is willing to play for only a small investment and which hands he wants to get as
money in the pot as possible.
Some hands are not worth a raise while others are worth a re-raise. Different hands have different values.
The same applies in stock trading.
In the same way that it would be foolish for a poker player to play every hand the same way (and for the same
amount), it is equally foolish for a stock trader to expose the same level of capital under all market
conditions.
Exposing the correct level of capital under a given condition is critical to proper risk management,
consistent performance and maximum long-term profits.
So how does one deduce the level of capital to invest?
By performing the first step of the Power Formula!
And the Power Formula is revealed on my Website…
… *** ABSOLUTELY FREE! ***
The power of this simple formula is incredible. And it forms a total trade program that will produce
consistent success.
Take a few moments and examine the benefits of the awesome Power Formula. Click the link below NOW…
http://hop.clickbank.net/?edollars/ltrades
The Power Formula is the key to consistent stock trading
success because it forms the foundation to all trade decisions. It is the foundation upon which explosive
profits are built.
And we have the tools, the resources that will allow you to apply the Power Formula in your trading business.
If you desire consistent, long-term success, then the information presented on my Website is a "MUST READ".
Take charge of your financial destiny…
Take control of your stock trading performance…
Take the steps that will produce phenomenal results…
Take the time and read this information…
http://hop.clickbank.net/?edollars/ltrades
Thank you for the opportunity to share this important
information.
Sincerely,
Kevin Butler |
