By the Investing Commando
Over the past 25 years I have worked with and mentored thousands of stock market investors. About a third of them aren’t successful at first because of one reason… they can’t handle the truth!
First, let me tell you some of the lies that they believe that cause them to become losing traders:
#1. Becoming a Winning Trader is All About Winning Trades – There are a plethora of so called investors and online academies that profess they can teach you how to win trades. They lure people in and charge them thousands of dollars promising to teach them how to win trades. These people are predators that feed on your money.
The truth is… it’s not about how many trades you win or lose… it’s about how much you money you make and how little you lose. Successful investors know it’s all in the money management and you can’t learn money management without a mentor and a support group.
#2 The Trade Signal is the Key – Beware of anyone who wants to sell you their charts and trade signals. Anyone can tell you when to get in on a trade, the secret of successful traders is knowing when to get out of the trade.
#3 Trail Your Stops – When you enter into a trade your order has two important points, the target profit where your trade will end and give you a gain and the stop loss which is the point where you will exit the trade with a loss. Be cautious of people who instruct you to trail your stop to ensure that you will win the trade. The number one reason for losing a trade is trailing your stop too close.
Everyone has seen the “standard” stock market pattern that looks like the edge of a saw blade. Like the motion of the ocean, the stock market has ebb and flow. Standard market action has retracements! If you move your stop too close, when the natural retracement of the market happens it will knock you out of the trade and then usually turns around and goes back to the previous direction. If you had stayed in your trade you probably would have made more money.
#4 You can Make a lot of Money Trading the Opening Bell – This is a half-truth. The other half of the truth is… You can lose a lot of money trading the opening bell. In fact, more traders lose money trading the opening bell than make money. In order to trade the opening bell you need to be a master trader and have a successful track record that you have established while trading the opening bell on a trading simulator. Don’t ever do anything with real money that you haven’t first developed a track record doing on a simulator.
If you want to learn more about the Truth in Trading, contact the S&P 500 Trading Group. Our group has the four necessary elements for success: We have a Training Academy with over 60 video lessons. We trade together daily Monday – Friday 10:00 am EST – 12:00 pm EST in a live trading session moderated by a World-Class Trader. There is member support via chat, coaching and meetups in major cities across the country, and most importantly, you will have a mentor who will give you a roadmap to success. Call our military millionaire hotline 855-955-9598.