Follow the rules below and you may make some extra cash?
1. Determine a reasonable and attainable amount of money to make each and every day!
2. Determine a fixed and acceptable amount of money to lose each and every day!
3. When either #1 or #2 is reached STOP TRADING for the day ( Yes, stop on the upside too, so you can preserve your energy for the next trading day )
4. You may exceed the upside on a given day without trying by letting the market dictate the profit. If your trade runs let it, but remember to take profit without being greedy
5. Self Control and Discipline mean you may not lose more than YOUR PREDTERMINED LOSS for a trade or a day. Your fixed and acceptable amount is the end of the day; not one penny over the amount ( this means IN ALL CASES you will have to stop prior to the amount so that you don’t override it ).
6. When you have three losing trade in a row call it a day, since it is not particularly your day to trade. For some unknown reason the market is not consistent with your thinking or your thinking is not consistent with the market. Who cares which category the inconsistency fits.
7. You must prepare in your mind for losing trades and losing days. Preparing to handle the inevitable loss of a trade does not mean you are setting yourself up to lose, but simply having a plan on how to act, what to do, where to go, and how to accept the loss as part of the trading EXPERIENCE. LEARNING WHEN AND HOW TO TAKE A LOSS IS THE WHOLE ENCHILADA.
8. Rest and energy are vital to a traders’ arsenal for success. If you lack energy and you are not rested you are not prepared to trade. Playing hard on the weekend or during the trading week will inevitably be your demise. Trade only when you are ready and never, never trade when you lack energy for whatever reason. Recognizing when you should not trade is vital to your success.
9. Having a successful week is the answer to your trading success. If you lose too much in one day you are behind the “8 ball”. Thus, one day must not set the tone for putting yourself in a “GET IT BACK MODE”. Too much energy will have been spent on the excessive losing day to recover in the ensuing days. Moderation in the losing column will enable you to win.
10. Friday is a day you want to play DEFENSE so that you may go into the weekend feeling good about yourself. Insure that on Fridays you are a winner even if you have to stop earlier in the trading day than anticipated.
About Me
- Mickey Hoffman
- Chicago, Illinois, United States
- Dr. Mickey Hoffman, a registered trader and broker with the National Futures Association, is a 30 year member of the Chicago Mercantile Exchange. In 1992, he founded the University of Trading for the sole purpose of introducing students to the career of futures trading. His extensive background in education and trading enables him to provide his students with an experience that is truly unique. Dr. Hoffman was a successful high school and college athlete, high school teacher, head coach, vice principal and summer school principal . His experience as a trader, broker, teacher, futures and options firm owner and author enable him to teach, counsel, and guide inexperienced students and experienced traders. Mickey enjoys working with new students as well as those who who are having a difficult time trading. Many have called Dr. Hoffman a "LIFE COACH"!
