The first time I went new car shopping for my first sports car was very exciting but a little intimidating. I knew exactly what I wanted and the first thing out of my mouth when I walked into that dealership was “Get me something over 500 horsepower without a back seat!”
What can I say, I was in my twenties. It was kind of like that feeling you get in your belly before you place a trade. That excited almost nervous angst that shoots down your arm, through your hands and right into your index finger just before you hit submit on a trade. That’s how I felt when I bought my first sportscar. I was almost shaking when I signed the installment contract, I was so excited. However, I knew I deserved it. My investments were paying for my liabilities and I wanted a little splurge. I thought to myself “I will continue on with my returns and in less than a year, I could pay this sucker off no problem.” Half hour later, I peeled off out of that dealership like I stole something.
When things are going well in the market it’s easy to get confident, sometimes cocky. I got there early on in my career. I thought I had it all down pat. I was riding the wave of good fortune for a year or two just like the rest of the investors at the time. Things were great and nearly all my trades were killing it. I was certain that within a few years or less, I’d be able to leave my job and trade full time. Then the recession started creeping in…
It didn’t take long for my fortune to change. My losses were almost equal to my wins and I was holding on tighter than ever. I was taking it personal because I thought I had everything figured out. I was putting in stop losses and following the advice from the investment forums and books I read. Nothing was working. I abandoned my systems altogether and in a moment of desperation I started speculating by trying to predict what was going to happen in the market next. Unfortunately, I was fighting the recession and trying to find little diamonds here and there that kept me going. Eventually, the diamonds were harder to find and I had my first consecutive losing months in my career. After that, I had three more losers in a row. I lost a big chunk of my investments during that time but I learned two big lessons I would never forget.
- Trade with confidence by sticking to a system while leaving emotions at the door.
- Only choose Systems that allow you to adjust your positions.
In other words, stick to the game plan, hedge your bets and trade with confidence.
Professional traders don’t speculate and they certainly don’t get emotional about trades or positions. To us it’s just patterns of numbers. We look for those patterns that have been proven to exist at any given time, no matter what the market is doing. We get in, collect our money and we get out either by expiring out of the money or cashing out and taking our winnings. When things get ugly, we adjust our positions, roll out to a later date until things die down or we hedge and make money on the way down. That is what it’s all about. We don’t bank on systems that are one sided winners. Professional traders have a series of strategies that make money on the way up, the way down and when the market goes nowhere. And all of these strategies utilize the power of adjustments to work our way back to profitability when things move drastically against us.
The bad stint during that rough patch was the main delay but I never looked back. I had my shares of losers after that year as well, but I was on my way to finding my perfect system. Each time I took a lick, I learned a lesson that serves me well today. That’s why the Trading Profit was created, to teach you how to trade like a professional investor with strategies that have the potential to change your life forever.