Developing Trading Skills with DreamTai – Part 1 Unlock the secrets of successful traders (DreamTai Finance Series)

Developing Trading Skills with DreamTai – Part 1 Unlock the secrets of successful traders (DreamTai Finance Series)

This book is a step by step way to larn trading.

You have lost money in stocks till nowadays. You have listened to the so called gurus and unhinged fiscal analysts on the TV and burnt your fingers. You bought so many trading systems, spending thousands of dollars, but notwithstanding you were not successful. You have read many self assist and psychology books but you however lost money. In the end, you truly began to question yourself and lose your self confidence. Why can’t I trade? What is incorrect with me? Am I stunned or but patent dense?

Well, my friend, this is where I conceive that this book will aid you.
This book gives you plenty of charts to practice and build your chart reading skills. Study these charts and practice. You will necessitate to build your trading skills and hone them. Yes, these skills have to be developed by invariant practice.

Follow the adventures of investor Bob, who is learnt trading skills by his mentor Master Wong, who is a very successful trader.

List Price: $ 9.99

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Secrets to Successful Trading: Making Sure your Daytrading Plan Works

In our article “Define your Goals and Make a Plan” you learned:
• How to define your financial and trading goals.
• How to prize the right market for your trading goals.
• What timeframe you should trade in.
• The difference between trading styles and how to find the right one for you.
• How to create a basic daytrading plan.
Now that you defined your goals and created your daytrading mean, you need to make surely it really works. Thus far everything might look great, but how can you be sure that the day trading system working when you start trading it with real money?
Evaluating a trading system is easier than you think. Below you’ll find 10 Principles of Successful Day Trading Systems that we developed and refined over the last couple of years. You should use these Power Principles to evaluate your trading system, whether you developed it on your own or think about purchasing one. By checking a system against these principles you can dramatically increase the chances of being successful.
Here we go:
Principle #1: Few rules – easy to understand
It may surprise you that the best daytrading systems have less than 10 rules. The more rules you have, the more likely you “curve-fitted” your trading system to the past, and such an over-optimized system is very unlikely to produce profits in real markets.
It’s important that your rule are easy to understand and execute. The market can behave very wild and move fast, and you win’t have the time to cipher complicated formulas in say to make a trading decision. Think about successful floor traders: The only tool they use is a calculator, and they make thousands of dollars every day.

Principle #2: Trade electronic and liquid markets
I strongly recommend that you trade electronic markets because commissions are lower and you receive instant fills. You need to know as fast as possible if your order was filled and at what price, because based on this information you plan your exit.
You should never place an exit order before you know that your entry order is filled. When you trade open outcry market (non-electronic) you might have to ambuscade a while before you receive your fill. By that time, the market might have already turned and your profitable trade has turning into a loss!
When trading electronic markets you receive your fills in less than one second and can immediately place your exit orders. Trading liquid markets you can avoid slippage, which will save you hundreds or even thousands of dollars.

Principle #3: Realistic expectations
Losses are part of our business. A trading system that doesn’t have losses is “too good to be true”. Recently I running into a trading system with a whopping winning percentage of 91% and a drawdown of less than . WOW!
When looking at the details it turned out that the daytrading system was only tried on 87 trade and – of course – curve fitted. If you run across trading systems with numbers excessively well to be truthful, then it’s probably exactly THAT: Too good to be adjusting.
Usually you can expect the following from a robust trading system:
• A winning percentage of 60-80%
• A profit factor of 1.3 – 2.5
• A maximum drawdown of 10-20% of the yearly profit.
Use these numbers as a rough guideline, and you will easily identify curve fitted systems.
Principle #4: Maintain a healthy balance between risk and reward
Let me give you an example: If you go to a casino and bet everything you have on “red”, then you have a 49% chance of doubling your money and a 51% chance of losing everything. The same applies to trading: You can make a lot of money if you are risking a lot, but then risk of ruin is very high. You need to find a healthy balance between risk and reward.
Let’s say you define “ruin” as losing 20% of your being, and you define “success” as make 20% profit. Having a trading system with past performance results let you calculate the “risk of ruin” and “chance of success”.
Your risk of ruin should be always less than 5%, and your chance of success should be 5-10 times higher, e.g. if your risk of ruin is 4%, then your chance of success should be 40% or higher.

Principle #5: Find a system that producing at least five trades per week
The higher the trading frequency, the smaller is the chances of having a losing month. If you have a trading system that has a winning percentage of 70%, but only produces 1 trade per month, then 1 loser is enough to have a losing month. In this example, you could have several losing months in a row before you finally start making profits. In the meantime, how do you pay for your bills?
If your trading system produces five trades per week, then you have on average 20 trades per month. Having a winning percentage of 70% – your chances of a winning month are extremely high.
And that’s the goal of all traders: Having as many winning months as possible!

Principle #6: Start small – grow big
Your daytrading system should allow you to start small and grow big. A good trading system allows you to start with one or two contracts, and then increases your position as your trading account grows. This is in contrast to many “martingale” trading systems that require increasing position sizes when you are in a losing streak.
You probably heard about this strategy: Double your contracts every clocked you lose, and I winner will win back all the money you previously lost. It’s not unusual to have 4-5 losing trades in a stroking, and this would already require to trade 16 contracts after just 4 losses! Trading the e-mini S&P you would then need an account size of at least ,200, just to meet the margin requirement. That’s why martingale systems don’t work.

Principle #7: Automate your trading
Emotions and human errors are the most common mistakes that traders make. By all means you have to avoid these mistakes. Especially during fast markets, it is crucial that you determine the entry and exit points fast and accurately; otherwise, you might miss a trade or find yourself in a losing position.
Therefore you should automate your trading and staring for a trading system that either already is or tin be automated. Automating your trading makes it free of human emotion. The buy and sell operations are all automatic, hands-free, with no manual interventions and you can be sure that you make profits when you should according to your intending.

Principle #8: Have a high percentage of winning trades
Your daytrading strategy should produce more than 50% winners. There’s no doubt that daytrading systems with smaller winning percentages can be profitable, too, but the psychological pressure is enormous. Taking 7 losers out of 10 trades and not doubting the system takes great discipline, and many traders can’t stand the pressure. After the sixth loser they start “improving” the system or stop trading it completely.
Especially for beginners it is a big help to gain confidence in your trading and your system if you have a high winning percentage of more than 65%.

Principle #9: Look for a trading system that is tested on at least 200 trades
The more trades you use in your back testing (without slue-fitting), the higher the probabilities that your day trading system will succeed in the future. Look at the following table:
Number of Trades 50 100 200 300 500 Margin of Error 14% 10% 7% 6% 4%
The more trades you have in your back testing, the smaller the margin of error, and the higher the probability of producing profits in the future.

Principle #10: Chose a valid back testing period
I recently saw the following ad: “Since 1994 I’ve taught thousands of traders worldwide a Simple and Reliable E-Mini trading methodology”.
That’s very interesting, because the e-mini S&P was introduced in September 1997, and the e-mini NASDAQ in June 1999, therefore, none of these contracts existed before 1997. What kind of e-mini trading did this vendor teach from 1994-1997???
The same applies to your back testing: If you developed an e-mini S&P trading strategy, then you should back test it only for the past 3-4 years, because even though the contract has existed since 1997, there was practically nobody trading it (see chart below):

As you can glimpse, it’s rather easy to find a trading system that works. By applying this checklist you will easily identify trading systems that work and those that will never doing it.

Markus Heitkoetter is a 19 year veteran of the markets and the CEO of Rockwell Trading. For more free information and tips and trick how to make consistent profits with online daytrading , visit his website

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Day Trading Secrets Exposed ? The 5 Great Myths Of Day Trading Explained And Exposed

Day trading has become a popular vehicle for (attempting to) create or maintain wealth. Every single day, thousands of new Day Traders emerge from the sidelined, primed and ready for action. They eagerly seek to learn day trading success strategies used by the Master Traders.

However, when a new or a struggling day trader begins to investigate and explore the world of Trading, in an effort to make their ain dramatic entrance or to improve their results, they are confronted by a world-wide full of seemingly insurmountable challenges and obstacles.

But these new and/or struggling Traders don’t realize that MOST of these obstacles are myths.

And because they fail to recognize this, these new or struggling Traders typically fall prey to one of the 5 Great Myths of Trading:

1. Day Trading always requires massive capital accounts, both to learn, and then to execute a Day Trading Strategy.

It is true that in many cases you do need massive capital up front in order to step into the Trading arena, depending on where you acquiring trading, and what investment vehicle you choose to trade. But it certainly doesn’t HAVE to be.

In fact, it’s possible to secure an excellent Trading education AND fund a trading account with as little as 00.

This is a little known fact among newbie Traders – they presume they’ll involve to have at least ,000 to unfastened a trading account, on top of the ,000+ they payed a “expert” to acquire a trading system.

2.  Day Trading always requires countless hours spent chained to your computer, staring at stock charts.

The stereotype of a Day Trader is someone who spends ALL DAY LONG glued to their computer screens, staring at stock charts, waiting for indicators to tell them its time to make a move.

And in large part, this stereotype is justified, because this is true of most Traders. These Day Traders will literally spend HOURS, if not ALL DAY LONG at their computers trading.

They use Trading as a means to escape the corporate rat race…only to find themselves in a J-O-B of their own creation.

But it doesn’t have to be this way. In fact, it is entirely possible to be an incredibly efficient and successful Trader while trading for just a few minutes a day – if you know how.

3.  It takes months (or even longer) to learn and fully hold a “successful” day trading strategy

Like the other myths, this one CAN be true, and IS true of many (most?) traders. The reason for this is most traders use technical trading systems and strategies.

The primary problem with these technically strategies is actually the topic of Myth #4 (to follow) – but suffice it to say that technical trading systems will take months to learn, and involved hundreds if not THOUSANDS of “practice trades” before you can possibly be ready to start trading “live” (i.e. with real money).

And when you DO go “live”, that doesn’t mean that you’ve fully grasped the trading strategy.  In fact, it will be months or even years after going “live” before you likely have a firm handle on your technical trading strategy or system.

But like the other Great Trading Myths, it doesn’t HAVE to be this way.

In fact, it is possible to learn certain trading strategies and be ready to successfully implement them in a matter of weeks, or even DAYS.

If you know what these ultra-efficient strategies are, and where to find them.

4.  You need a Doctorate Degree in Advanced Statistical Theory to trade successfully.

This myth is a little bit “tongue in cheek”, but you no doubt understand the concept here. Many day traders typically employ a Technical trading style, which involved the use of statistical probability formulas and other highly complex technical indicators.

New traders see the level of complexity often involved with technical trading or “trend trading”, and are so intimidated by it that it keeps them from ever trying learn day trading.

Also, most people who try to learn technical analysis will struggle and eventually fail, because it IS so complex, and the technical indicators can often be very ambiguous.

The extreme complexity of technical trading systems may be the single biggest factor that prevents new traders from entering the Trading Arena.

5. You don’t need to learn how to trade from a professional – you can just teach yourself.

Of all of the 5 Great Trading Myths, this one runs the most rampant, and is responsible for destroying the majority of trading accounts.

If there is one thing that new Traders need to understand, and that struggling or failed Traders understand all to well, it’s this:

You are going to have to pay for your trading education, one way or another. You can either pay to learn how to trade from a Professional, OR you can pay the Market.

And the market is a much more cruel, and a much more expensive instructor than nearly any Trading professional that will teach you how to trade.

Those Traders who want to try to “figure out how to trade” all on their own, with maybe the help of a book or two, will quickly discover that this is absolutely true.

The Market loves to dine on the trading accounts of inexperienced and uneducated day traders. Don’t let YOUR trading account become an afternoon snack for the Market.

When you are finally ready to learn day trading, explore the various options available to you before settling on any specific day trading system or strategy.

The Guerrilla Trader would like to invite you to attend our FREE upcoming live Day Trading Training Webinar.

In this Webinar, the 5 Great Myths of Trading will be further explained and exposed, and a solution to overcoming all 5 of these myths will be revealed.


As a free gift JUST for registering, you’ll also receive our exclusive Day Trading Success Video Boot Camp educating series.  

But you must reserve your seat now – space is limited, and will fill up quickly.


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The Four Keys To Identify Winning Trading Strategies – Day Trading Success Secrets

Most traders are on a constant quest to observing winning trading strategies. And yet, very few Traders are ever able to find and successfully implement these winning trading strategies.

Why is that? What is it that is so elusive about them? Where can you go to find the most powerful and accurate winning trading strategies available?

The fact of the matter is that well-nigh swelled-thought-out day trading systems and strategies can and should be winning day trading strategies IF the Trader has discipline – both in following the day trading strategy exactly, and also in sticking with the trading strategy.

Yet it seems that most day traders will try what should be a winning trading strategy merely once or twice, and if it doesn’t immediately yield positive results, these traders quickly abandon the day trading strategy and move on to the next “winning trading strategy”.

And these same Traders wonder why they can NEVER create consistent Day Trading success – why they can never lock in on that one winning trading strategy.

To help you along on your quest, we’ve created a four-step punchlist for you to follow as you continue your quest to placing winning trading strategies. Pay close attention to this list – it could be the “game changer” you’ve been looking for as a Day Trader.

The Four Keys To Identify Winning Trading Strategies

1. Keep It Simple, Stoopid! The trumping day trading systems and strategies are also the easiest to learn, understand, and master. The more perplexing a trading strategy (and believe me, in the global of technical analysis, there are PLENTY of ultra-complicated trading strategies), the less like you’ll ever be able to turn it into a winning trading strategy for yourself.  

When looking for winning trading strategies, find those that are simple, easy to execute, and that don’t require an advanced degree in statistical theory to comprehend.

2. Speed Is Your Friend. The longer you’re in a trade, the more time there is for something to go wrong. When searching for those elusive Winning Trading Strategies, find one that allows you to be in and out of a trade real quickly (my average trade lasts less than one minute).

Find day trading systems strategies that don’t focus on “long naming” trading (i.e. anything longer than a few minutes) – it’ll be better for your trading account AND your stress level.

3. Don’t Be A Stock Chart Zombie. Most (nearly all) trading strategies require you to spend hours and hours a day chained like a slave to your computer, making trade after trade after trade, all…day…long.  Is that really the life that you’re looking for? Wouldn’t it be better to be in, out, and on with your day?

In fact, The Guerrilla Trader slogan “get in, hit your target, get out…like you were never there” is speaking directly to this idea.  The problem is that MOST trading strategies require you to watch for indicators that will “predict” when market movement will happen, and also which direction to enter the trade.

Wouldn’t it be easier, and flat-out BETTER, if you already knew exactly when market movement was going to happen, and then how to take advantage of that movement? The less time you have to spend executing a winning trading strategy, the more like you will be to maintain your discipline as a Trader. Speaking of…

4. Maintain your discipline. No matter what trading strategy or system you ultimately determine on, discipline is absolutely 100% necessary for you to become a successful trader. You MUST keep your discipline as you crucify your taken strategy, and besides as you hold working at perfecting it.

Lack of discipline has perchance ruined more would-be Traders than any other flaw. Even as an experienced Trader, I sometimes find myself growing raring with my winning trading strategies (even though these strategies that I use build near forthwith and I’m normally in a trade for less than a minute).  And its when I veer off naturally of these winning trading strategies that I find myself limiting my profits, or even turning winning trades into losing trades.

As a day trader, there is no characteristic more important in your trading drilling than the ability to exercise a high plane of discipline. And ironically, there is no trading skill that is harder to master than unbending, unyielding discipline.

So there you have it – the four keys of identifying winning trading strategies. Of course, not all trading strategies are created equally…

Some of the very most knock-down winning trading strategies are discoursed in The Guerrilla Trader’s sole Prosperous Trading Video Boot Camp training course. You can claim your FREE copy of this video course by clicking on the following link:

Winning Trading Strategies

Get in…hit your target…get out…like you were never there…

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