Way back in 1999 I was invited to mentor a group of 5 traders in Florida and since then worked with more than 14,000 traders through my training programs.

The huge benefit of this is that I see over and over again what
things make some traders successful and others struggle.

Everything I share with you below comes from both my personal experiences as a trader and from all I learned working with everyone.

For this reason, I know without a doubt that as simple and cliché as some of the rules seem, they can make or break you.

Let’s jump in…

1. Don’t be afraid to invest in yourself. You are by far the most important asset you own. Anything that can strengthen your focus and belief in yourself will pay big dividends.

Go ahead and take a meditation or self-improvement class. Buy books that inspire you. Read biographies of famous people who changed the world for the better or were a huge success in business.

Also spend money on nutritious foods and a gym membership or personal trainer. Trading is intense and requires a razor sharp mind and being physically fit is a must to achieve this.

2. If you want to make money trading, you need to welcome losses as they are a part of trading. There is just no way around it. Think of losses as the cost of doing business and that each loss gets you closer to your next series of winners.

3. Surround yourself with successful people. Stay away from all the naysayers and complainers as they will only drag you down and lose your focus and belief in what you’re doing.

4. Don’t over complicate things. The more rules and moving parts you try to incorporate into your strategy the less likely it is to work. The reason is that it will cause too much confusion and second-guessing when the market is unfolding in real-time.

5. Man up! Despite internet claims of systems and software that will make you 100% a week… The reality is that trading isn’t a get-rich vehicle and it’s takes a whole lot of dedication and perseverance to make it work.

As they say, “If it was easy everyone would be doing it!”

6. You need to accept the fact that you will miss countless trades each month. In other words trades will setup while your sleeping or at work and you’ll just miss them. The good news is that there are always new trades setting up in a time that you are free and the only thing that matters is how well you make the trade. Over time you’ll have more that enough opportunities to keep your account growing.

7. Ditch demo trading as soon as possible as it leads to a false sense of security. This in turn leads to many unexpected losses when real money is on the line.

Think of it this way… Say your playing one of the war games on Xbox and shooting all the bad guys and saving the day. Now imagine if all of a sudden you were in a real war zone and everyone was shooting at you…

All your Xbox playing would have done little to prepare you for the real world and odds are you would end up injured or worse. This is why you need to take the demo training wheels off quickly and start trading with small lots.

It’s the only way to get really good.

8. One bad trade doesn’t define who you are. It’s very easy to get depressed after a couple losses and feel like your just not cut out for this. You have to start thinking in terms of how you’re doing over 100 trades as this will not let a few inevitable bad trades derail your confidence.

9. Any fool can hit a button and enter a trade but… True mastery is in how you manage the trade.

This makes the difference between living in the “Poor House of The Penthouse”!

10. Preserve your capital at all costs. You must risk no more than 2% on a trade so that you don’t risk the possibility of blowing out your account.

11. There are no unrealistic goals just unrealistic time frames. For example, say you want to turn your $5000 account into $100,000. Well thinking you can do it in 6 to 12 months is very unrealistic but…

Doing it in 3 to 5 years is much more doable. Don’t forget that the most long term successful investors like Warren Buffet don’t make much more than 30% a year. Even some of the more aggressive fund managers don’t make more than 70% a year.

12. I can’t stress this enough… Find one strategy that you like and stick to it over and over again.

That’s the big secret to making the big $$$ in this game. Don’t even think about adding a second strategy to your arsenal until you master the first one.

13. I don’t care how smart you are, the market is smarter and has the last word always. What this means is that even the best strategies and analysis will be wrong so… When things don’t go as planned, just accept that the market had other plans and move onto a new trade.

14. You need to create a trading plan and stick to it. Otherwise you’ll be flying blind and risk going off course and even worse, crashing.

15. Don’t be afraid to invest in your trading business. You need the right tools, equipment, software and mentors as they can save you years of wasted effort and money.

16. It’s better to be “Street Smart” versus “Book Smart” when it comes to trading. The only way to sharpen your skills is to have some skin in the game and take hundreds of trades with real money.

Over time through all your successes and mistakes, you’ll gain a feel for the market which in turn will give you a strong belief and confidence in your abilities.

“Book Smart” traders will forever be “Armchair Traders” that never take action due to a fear of being wrong.

To wrap this up…

Awhile back, there was a television commercial by the Vidal Sassoon hair salons that said, “If you don’t look good, we don’t look good”.

This is why I share these things with you as I feel it my duty and mission to help you to become consistently profitable.

The bottom-line is that the more profitable I can get you,
the more I know that I’m making a difference in your trading.

Part of my job as a trading coach/teacher/mentor is to shine a light on all the potential road blocks that can get in your way and to occasionally give you a metaphoric kick in the butt to keep you going.

Anyway, read this each month and I hope that some of these give you a “Light Bulb Moment”.

As they say… “Get the big idea and all else follows…”

Happy Holidays and…

Let’s make the new year the best yet!

Dr. Jeff

Since 2003 I’ve written 5 books on trading and taught over 14,000 students in more than 73 countries. I love sharing my knowledge and I’ve found by accident that mentoring others actually helped me become a more profitable trader.