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Learn how to trade for maximum roi tbl traders

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Learn how to trade for maximum roi tbl traders

  1. 1. AVOID THESE 6 TRADING SNAFUS Increase ROI & Decrease Loss For The Money Minded Traders TBLTRADERS.COM - Focus On The Bottom Line
  2. 2. TABLE OF CONTENTS i.  Snafu #1… Trading with out a plan ii.  Snafu #2… Fear of Losses iii.  Snafu #3… Trading As A Business iv.  Snafu #4… Market Timing v.  Snafu #5… Having Unrealistic Expectations vi.  Snafu #6… Bad  Money  Management/Poor   Diversifica6on
  3. 3. CHAPTER Snafu #1 No Trading Plan ???
  4. 4. Trading Plans 101   When  the  trading  bug  first  bites  you,  you’ll  learn  very  fast  that  even  the   smallest  misstep  can  be  costly.  The  highs  of  the  risk  along  with  the  chase   of  the  next  big  bubble  creates  desperado  style  traders.  Today  we  will   provide   you   with   the   6   most   common   trading   snuafus   to   avoid   while   treading  the  markets! Snafu  #1…  Trading  Without  A  Plan   • Any  successful  business  requires  a  thorough  business  plan  to  succeed   and  the  same  goes  with  trading.  Having  a  trading  plan  ensures  that  you   follow  guidelines  which  create  rules  in  order  to  avoid  disasters.  When   you  invest  in  an  instrument,  you  have  just  invested  in  your  business  so   you  must  treat  your  trading  as  a  business  and  I  can’t  stress  enough  the   importance  of  trea6ng  it  as  business.  Let  start  with  the  basics  of  a   trading  plan  and  what  it  consists  of:   • Goals:  How  much  would  you  like  to  gain  per  week,  month,  and  year?   What  is  it  geared  toward?  Day  trading?  Re6rement?   • Risk:  What  is  the  minimum  risk/reward  you  can  accept?  I  am  willing  to   risk  $2  for  a  poten6al  of  $5.  You  should  know  your  tolerance,  
  5. 5. •  which  goes  hand  in  hand  with  your  overall  trading  capital.  You   need  to  assess  your  capital  and  determine  how  much  risk  you   are  willing  to  put  into  any  given  trade.   •  Fundamentals:  Don’t  get  into  any  trade  with  out  know  the  ins   and  outs  of  the  company.  Ask  yourself  when  is  earnings?   Along  with  using  technical  analysis  for  paTerns  on  different   6me  frames  on  charts.   •  Trading  Logs:  Have  a  clear  form  of  record  keeping.  Always   create  your  logs  as  if  someone  else  was  going  to  review  them   so  that  they  are  organized  with  winners,  losers  and  the  when   and  whys.  This  will  in  the  long  term  increase  return  of   investment  and  that’s  the  boTom  line.  If  not  you  might  as  well   go  to  a  casino  and  gamble  your  money  away.  
  6. 6. “."Know  when  to  fold  'em!"     by Kenny Rogers ”Snafu  #2…  Le@ng  Fear  Reign  Supreme  (a.k.a.  Emo6onal  Trading)       Let’s  face  reality  right  now  if  you  are  trading  in  any  market  you  will   have  loses  and  anyone  who  tells  you  different  is  lying  to  you  and   insul6ng   your   intelligence.   You   shouldn’t   fear   a   lost,   managing   losers  is  key  to  bigger  profits.  You  ask  how?  Simple  as  cu^ng  your   losers  faster  and  less  o_en  increases  your  profit  poten6al.  As  long   as  you  have  a  good  management  on  losers  at  the  end  of  the  month   you  will  see  that  your  return  on  investment  is  greater  then  before.   Here  are  a  few  basic  rules  to  follow  and  pu^ng  your  fears  in  check:     Ø  Don’t  chase  the  holy  grail  of  strategies,  which  you  can  set  it   and  forget  it  sorry  this  isn’t  a  microwave  you  have  to  be   involved  with  your  trading  to  minimize  lost.   Ø  Don’t  double  up  on  trades  to  recoup  a  recent  lost   Ø  Don’t  believe  in  a  magical  indicator  for  all  the  analysis  you   need  to  enter  a  trade.   Ø  Learn  from  your  mistakes   Ø  Leave  emoMons  at  the  door  
  7. 7. Snafu  #3…  Not  Trading  as  a  Business  (TAB)       Many  investors  don't  recognize  the  write-­‐offs  they  can  use  when   inves6ng.    Did  you  take  a  trading  educa6on  class?    Are  you  paying   a  monthly  subscrip6on  for  a  char6ng  program?    These  all  can  be   properly  handled  on  your  taxes.       Also,  your  IRA  contribu6on  needs  to  be  taken  advantage  of  EVERY   year.    The  tax  benefits  of  this  are  amazing,  and  most  IRAs  can  be   traded  out  of  just  like  a  cash  account.    If  you  start  thinking  of  your   trading   as   a   business,   you   will   stop   trea6ng   your   trading   as   a   gamble.   Don’t  Fall  VicMm  To  Snafu  #3     Trading  Is  A  Business  and  Should  Be  Treated  As  So  
  8. 8. Epic Market Timing So   many   people   have   issues   with   this   one;   market  6ming  is  one  of  those  things  you  pick  up   with   experience   and   correc6ng   all   of   the   items   we  discussed  before. A Publication of TBL Is Now A Good Time
  9. 9. trends  or    even  worst  you  follow  a  so  called  “Guru”  who  is  beTer   at  marke6ng  than  with  trading.  The  boTom  line  is  if  you  cant  read   a   chart   and   understand   it   to   the   point   where   you   can   teach   someone  it  you  will  not  be  taking  full  advantage  of  trading.     Snafu  #5…  Having  UnrealisMc  ExpectaMons     Inves6ng  is  about  as  complicated  a  subject  as  there  is.    That  is   partly  why  every  investor  has  completely  different  expecta6ons.    If   you  are  involved  in  low-­‐risk  funds  and  slow  moving  stocks,  you   should  have  expecta6ons  in  line  with  what  that  can  provide.    That   is  why  diversifica6on  is  so  important.    This  topic  6es  most  of  the   other  5  Snafus  together  in  that  you  can  only  move  forward  with   your  porgolio  if  you  first  honestly  ask  yourself,  "How  much  do  I   want  to  make,  and  how  much  risk  am  I  willing  to  take?"    Your   expecta6ons  then  must  be  constantly  assessed,  and  re-­‐assessed  in   line  with  the  performance  of  your  porgolio.    If  you  start  losing   money,  you  shouldn't  stay  in  the  same  investment  and  expect  the   same  return  over  the  long  haul  without  making  any  changes.     Don't  fall  in  love  with  every  decision,  keep  your  porgolio  fluid  and   look  at  it  objec6vely.    Only  you  have  the  power  to  make  changes..     Snafu  #4…  Poor  Market  Timing   You   would   be   shocked   how   much   money   you   are   leaving   on   the   table   with   poor   market   6ming.   Poor   market  6ming  is  due  to  not  having  a   watch   list   or   just   inexperience   and   not  focusing  on  what  you  should  be   looking  for  so  you  solely  trade  on  
  10. 10. This  is  two-­‐fold,  we  are  talking  about  overall  diversifica6on  as  well   as   on   a   trade   by   trade   basis.     Proper   diversifica6on   in   your   porgolio  as  a  whole  is  of  paramount  importance.    The  fact  that   you  drink  Starbucks  every  day  is  not  enough  reason  for  you  to  buy   the  stock!  Get  familiar  with  all  markets,  sectors,  commodi6es,  and   indexes....not  just  what  you  see  commercials  for.      Ask  yourself  if   your   are   honestly   prepared   for   when   the   market   has   a   40-­‐50%   retracement  again.    A  large  percentage  of  investors  have  yet  to   recover   from   the   2008   disaster,   and   it   is   only   a   maTer   of   6me   before  the  market  goes  back  down.    Make  sure  you  have  enough   non-­‐correlated  assets  in  your  porgolio,  as  well  as  alterna6ves  to   long-­‐only  investments.  You  should  keep  money  in  various  different   areas,   and   mul6ple   different   direc6onal   strategies.     That   is   the   only  way  to  not  be  handcuffed  to  the  market  having  to  go  up  as   the  only  way  you  can  profit.    Don't  "double  down"  on  the  next   trade  a_er  a  loser  either,  that  is  a  sure  fire  way  to  have  a  huge   drawdown.     In   this   day   and   age,   there   are   more   than   enough   op6on   strategies,   short   funds,   and   other   choices   to   diversify   properly.    Cash  is  never  a  bad  place  to  be  either.    Everyone  can   make  money  when  the  market  goes  up,  but  that  isn't  always  the   case.    Have  a  disaster  plan!   Snafu #6   Snafu  #6…  Bad  Money  Management/Poor  DiversificaMon  
  11. 11. A)  Emo6onal  trading:  everyone  has  a  different  value  of  a  dollar,   but  nobody  likes  to  lose  one.  Be  self  aware  enough  to  know  and   admit  to  yourself  if  it  is  6me  to  just  walk  away  from  the  trading   plagorm  for  the  day,  week,  or  even  month!    A  couple  of  losers  in  a   row  can  have  dire  psychological  effects  on  a  person,  and  create  a   snowball   effect   of   reckless   trading   decisions...there   will   ALWAYS   be  another  trade...don't  force  the  situa6on!   B)  Don’t  Trade  instruments  you  like,  or  are  familiar  with,  instead  of   others   you   will   make   money   with.   Just   because   you   drink   Starbucks  every  day  does  not  mean  you  should  have  200  shares!     Get   familiar   with   all   markets,   sectors,   commodi6es,   and   indexes...not  just  what  you  see  commercials  for!   C)  Proper  diversifica6on.    It  is  almost  criminal  to  have  a  porgolio  of   long-­‐only   stocks.     You   should   keep   money   in   various   different   areas,   and   mul6ple   different   direc6onal   strategies.     That   is   the   only  way  to  not  be  handcuffed  to  the  market  having  to  go  up  as   the  only  way  you  can  profit.    Think  about  your  porgolio  right  now   as   you   read   this.......and   ask   yourself   this   ques6on,   and   be   honest....."Am  I  prepared  for  a  massive  downturn  in  the  market?   Or  have  I  been  blinded  and  goTen  a  false  sense  of  comfort  by  how   much  it  has  gone  up  in  recent  years?"    A  lot  of  people  s6ll  haven't   recovered   fully   from   2008...don't   be   that   investor   this   6me   around...be  vigilant!    Have  a  disaster  plan!   D)  Investors  think  it  smart  to  hang  on  to  losers  longer  than  they   should   when   that   money   could   beTer   serve   them   elsewhere.     I   love   when   investors   say,   "It's   a   paper   loss!”   Oh   yeah?   And   that   makes  it  beTer  why  again?    Don't  ever  be  scared  to  take  a  loss  and   move  on!   E – Book Overview  
  12. 12. The Bottom Line Analysis 1)  Your  alloca6on......how  much  is  in  what  asset  classes,  and  where  you  can   move  money  to  minimize  drawdown  and  maximize  return.   2)  Introduce  asset  classes  you  may  not  be  familiar  with,  but  belong  in  your   porgolio   3)Lets  go  over  your  fees,  are  you  paying  too  much  to  your  broker?   4)  assess  risk  levels  of  your  investments.....is  your  risk  vs.  reward  plan   working?   5)  Assess  how  correlated  you  are  to  the  market,  for  example,  are  you   "handcuffed"  into  only  making  money  when  the  market  goes  up?   6)  Are  you  protected  for  when  this  market  crumbles?    will  you  make  money   when  it  goes  down?    nobody  has  a  crystal  ball  and  knows  when  this  will   happen.......it  is  beTer  to  be  prepared!   7)  Are  you  maximizing  investments,  costs,  and  market  losses  on  your  taxes?   8)  What  can  you  do  right  now.....today.....to  take  the  first  step  towards   maximizing  your  porgolio  and  protec6ng  what  you  have? LOOLearn More Allow  Us  To  Go  Over  Your  Trading  Logs  And  Pin  Point  Profit   Poten6als  and  Much  More…  

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