Your trading battle plans. Do you have one?

The Consistent Trader

This is my letter that I hand out to every trader that comes to one of my sessions. Many call it their trading bible and work hard to live by it. It gets right to the point of what's really important when you decide to enter into the world of warfare we call the Markets.

I'm not here to shower you with a bunch of hope, glamour or any other bullshit. I certainly can't guarantee any of you will become consistent traders. I won't tell you that all of your hopes and dreams are about to come true. I don't have all the bells and whistles, such as expensive software or elaborate trading platforms that guarantee success. I'm not going to play eye of the tiger, and then try to sell you something. What I will do is give you the opportunity to create the fastest paced business you could ever dream of, and yes if your successful, financial freedom will follow. This I can guarantee!
Do you have any idea what it takes to become a successful trader? No matter how good you may think you are, you're not better than many that play this game. While I may not be the most successful trader, I have accumulated a wealth of knowledge and experience in the 13 years I have been trading. I have made every possible mistake and lost money in every conceivable way one could lose it. I've made thousands and thousands of trades, and just by my experience alone, I will most likely take your money before you take mine. Each time you enter into a trade to buy, sell or short any security, you may be buying or selling it from me. We both think we're right. The problem is, only one of us can be right, and I'll put my money on the trader that has a PLAN. A trader that has mastered the art of reading charts, and most importantly, has developed the mental discipline to follow said PLAN.
If you have an abundance of determination, and a never say die personality, you'll have a much better chance of thriving than someone who lacks the type of drive. If you are a disciplined person, someone who is aware of both their strenghts and weaknesses, you can exponentially increase your odds of becoming a consistent, successful trader. Know, however, these traits alone will not guarantee you are going to win. It simply means that with a lot of determination, and a good old fashioned pig headiness, you will be able to last long enough to become a good trader. A consistent trader. I learned the long, hard, painful way. If I had only been more mentally disciplined, I wouldn't have had to endure so much pain and loss. We call this paying your tuition. Most of the worlds top traders will tell you that you won't become a consistent trader until you have lost money in every conceivable way.
Everyone of you came here for the same reason; to learn to become a consistent trader. Right now, you most likely second guess your entries, exits, location of stop placements, and when to move them to protect your profits. These essential skills are just a small fraction of what you must learn before you can expect to win consistently as a trader.
What is your PLAN? Do you even have a plan? Most importantly, do you follow and execute your plan as intended? I'm willing to wager that my last question is the one you struggle with most consistency, and will continue to do without guidance. Why? Because it requires a near SUPERHUMAN AMOUNT OF SELF DISCIPLINE. Making the plan is easy; executing it is always what's most difficult. The emotions of Fear and Greed in the purest form. On one side, you have a trader thinking something is cheap, and on the other side, a trader is thinking it's expensive. Both traders have rational reasons for their opinions, but again only one can be right. For the trader who was wrong, how much was he willing to risk on the trade? Where was his stop? Did he adhere to his plan, and exit the trade like he originally intended? Did he let emotions sway his decision in any way. Odds are he did, and will continue to do so again, and again, and again. Of all the skills you will need to acquire, mastering your own emotions will be the most difficult, yet most crucial to becoming a consistent trader know matter what time frame your trading. The emotion of FEAR can be paralyzing, and if you have traded for any lenght of time, you know what I'm talking about. For those of you who have not yet felt it, you most certainly will at some point in your trading carrier, trust me! It may also be your greedy (yet very human!) hopes that the stock will go back up where you entered it so you can just get out break even. Sound familiar?
The Trader that was on the winning side of the trade has to deal with his own emotional demons as well. The moment he is up in the trade he starts fretting about his profits. How much is enough? How much of my profits am I willing to risk to potentially make more money? (GREED). Humans are hardwired to react the same way to these two emotions. We will generally respond the same way to Fearful, and Greedy events over and over again. The best example of this is the general public. Despite the common wisdom of buy low sell high, people will repeatedly buy the tops, because they've watched the markets go up, and they don't want to miss out on the easy MONEY! Consequently, those same people will sell at the bottoms, due to fears of greater losses. (Loss of HOPE). Buy Low and Sell High sounds so easy, and in theory, it is. Battling our emotions however, therein lies the rub. In order to combat these emotional pitfalls, you must start with a PLAN. YOU'RE STRATEGY FOR THE TRADING WARFARE THAT LIES AHEAD.

I train traders like their generals going to war. To treat your Money as though it were your Army, your SOLDIERS. Lose them all, and your War is over, and so is your trading carrier. Only send them into battle when you have the advantage, your edge, and if your wrong retreat. (Sell Immediately)
I train them to have a PLAN. To develop their edge that gives them the advantage when they enter the warfare that takes place in all markets daily.
I train them in the art of reading Charts, this is where the battles are fought daily and where your edge is to be executed.

Brad DeOrnellas
The Warfaretrader