Master the art of trading

1. Master the art of trading Simon Brown JustOneLap.com SimonBrown.co.za @SimonPB 18th September 2012

2. Trading is easy

3. Stages of a trader • Unconscious Incompetence • Conscious Incompetence • Conscious Competence • Unconscious Competence

6. Losing money

7. Being wrong

8. Desire • To be right • To confirm ones view • To get positive feedback from the market

9. External fear Caused by something outside of you which you are strongly motivated to avoid. Example: being wrong, losing money

10. Internal fear Something inside of you that you link to a negative emotion. Example: being wrong, losing money

11. BUT • Life rules and trading rules are different • We are wired for life rules • Have to wire ourselves for trading rules

12. What to measure • Measure success by what we can control • Discipline • Consistency • Monitoring trade • Exit (stop loss) • We can not control winning or losing trades

13. How to measure • Generate trade • Determine exit strategy • Determine trade size • Enter on confirmation • Monitor trade & stop loss • Exit as planned • Keep a journal

14. What to loose • Losing trades are a fact of trading, a cost of doing business • Start up capital • Be comfortable with the potential loss before you enter

15. What to loose • Stop loss determines Rand risk per trade • Be comfortable with this • Worse case of 20 losers in a row?

16. How to trust • Discipline requires trust • Eyeball the system on a chart (at least 20 trades) • 20 paper trades • 20 real trades with small amounts • Than the real deal

17. Greed

18. Further reading • Trading in the Zone • Mark Douglas • Mind Power • John Kehoe

19. Re-cap • You can’t trade with fear • Know how to measure • Accept potential losses • Trust your system

20. ?

21. Master the art of trading Simon Brown JustOneLap.com SimonBrown.co.za @SimonPB 18th September 2012