Your 30 Day Trading Challenge

Focus is one of the most important part of trading and life. You need to be able to focus or you won’t get anything done.

I teach that people, other than day traders, should only spend 15 minutes a day on their trading. Why? Because they can focus for that long and not much longer. I’ll write more about that later.

Another way to focus is to create a tight schedule and then stick to it. I’m going to propose that you create a 30 Day Challenge for your trading.

Sit down right now and get ready to take some notes.

I want you to create a Challenge for yourself to accomplish in the next 30 days. Let me give you some suggestions:

1. Execute flawlessly for 30 days.

2. Make money every day.

3. Learn something new every day.

4. Talk to another trader every day.

5. Have your equity higher at the end of 30 days than today.

You figure out what you should focus on to make yourself a better trader and a more profitable trader. Have a problem with psychology? Feel fear when you put on a trade? Then give your self 30 days to conquer this problem. Better yet, don’t feel fear every day for 30 days.

This 30 Day Challenge is a great way to make sharp jumps in your trading skill. It creates focus.

To help you, here’s a link to fill out a simple form for your 30 Day Challenge. I don’t want your name or email. You will be anonymous. But filling this form out will be a great way to commit to the 30 Day Challenge.

In 30 days, I’ll write another letter asking for your experience with the 30 Day Challenge.

 Click here to fill it out now!

I’ll report back to you what other people are putting down as a 30 Day Challenge so you can get some inspiration for your own 30 Day Challenge!

Here’s the link!

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7 Worst Things that Can Happen

Do you worry? Do you wake up in the middle of the night sweating? Does fear control you? Does it stop you from making money as a trader?

Are your fears controlling you?

One of the best ways to control fear is to confront it. We are only afraid of the unknown. So one technique for conquering fear is to look it in the face.

#1. You’ll Die

OK, just joking. I’ve never seen a medical examiner declare a person dead through an overdose of trading!

But I’m putting it in this list to make the point that the most awful thing that can happen to you won’t happen because of trading. So relax.

#2. You will lose a lot of money

Of course this can happen. Many people lose lots of money trading. Why? Usually because they don’t have a system, don’t follow the system, and/or don’t have good risk management.

Now stop and think about it. How much can you lose? Let’s say you put in $10,000 into an account. Theoretically, you could lose all of that and more. Realistically you could lose all the money in the account.

How do you feel about that? How do you feel about losing $10,000? No, really get into the feeling of what it would be like to lose that money. You worked hard for it. You’ll never see it again.

Remember that you should never trade with money you can’t afford to lose so your financial situation should not be dire if you lose the money.

#3 You will be lonely

In the final analysis, trading is a solitary profession. You are the only one who make the final decision of your trades. Yes, you can talk to other traders but this is not like a regular job where you get to chat with others around the water cooler.

You may start talking to yourself and wandering around the house in PJs. You’ll get fat from raiding the refrigerator all day.

#4 People will shun you

Similar to the one above, people won’t really understand you. What do you do for a living. I’m a trader. And then watch their face. Most will look confused but a few will be interested. Most won’t know what to do with you because being a trader doesn’t fit into their reality.

In fact, even your family and friends may not really like that you are a trader. They won’t understand it. My parents thought I was a stock broker for my whole career because that was the only thing they could relate to. I don’t think either of my two wives really knew what I did for a living.

#5 You’ll succeed

Keith Cunningham says that hell is meeting the person you could have been.

Many people don’t really want to succeed. They find ways to sabotage themselves. They find excuses for their failure.

Success means that you have to take responsibility for your situation and many people don’t want that responsibility. It’s scary. There is nothing to hang onto.

The Bottom Line

I know this is kind of a bummer. I get that.

But I believe that trading is very easy if we let it be easy. But few people allow it to be easy.

My favorite book on the psychology of trading is Mark Douglas’ The Discipline Trader. You can get it here.

We offer a very inexpensive course called the Psychology of Massive Wealth which I recommend that everybody get. Here is a free video training about how you can have a Psychology of Massive Wealth.

Finally, you might want to become a trader in spite of this essay! If you do, this free video training is a good place to start.

You can watch if free by clicking here.

 

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TRADESMITH video Free version – June 19, 2017

What a difference a week makes! Do you want to learn more? Watch TradeSmith to find out!

Courtney Smith’s market forecast, TradeSmith, provides valuable insights on the market from a Professional Trader with over 45 years experience. Courtney Smith is the only person in history to have managed atop ranked Hedge Fund, Stock & Futures Picking Newsletters, & Mutual Fund. Watch & learn from a master trader’s analysis of the market. Courtney has been featured on TV over 1000 times and trained on hundreds of stages around the world to tens of thousands of traders worldwide. Subscribe to the Premium TradeSmith Podcast to receive additional insights and specific trade recommendations at http://bit.ly/WeeklyMarketForecast

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Amazon Eats the World

Amazon announced today that they are buying Whole Foods (otherwise known as Whole Paychecks). This is powerful for several perspectives.

Amazon is moving more and more into the real world. I’m in Beverly Hills right now. I can order from Amazon and two local grocery chains and have the food or products delivered to me in less than two hours! Now I’ll be able to have my Whole Foods delivered to me as quickly.

In addition, AMZN has been opening bookstores over the last year to experiment with different business models from traditional book stores.

What this also means is that the prices in Whole Foods stores are about to be slashed. Amazon knows how to run lean, better than Whole Foods. So we can now expect Whole Foods to compete on price with the big grocery chains which means Whole Foods revenues are about to explode.

It is also setting up a collision with Walmart. Walmart is now the country’s biggest grocer and they do an amazing job at it. Amazon is taking the high end with Whole Foods but you can bet that Amazon will find a way to dive even deeper into Walmart’s territory as the same time Walmart is trying to revive their online presence to attack Amazon.

These are two great companies but Amazon has been online longer. In addition, Amazon has made themselves a platform for all sellers so they are a bigger footprint. I never want to count out Walmart but I give the edge to Amazon.

I’m really bullish on AMZN stock! I think today’s announcement is a great opportunity for both swing traders and position traders to buy AMZN.

The best place to keep up with my specific stock trades is my weekly video newsletter, TradeSmith. Please check it out here.

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Richard Donchian’s Technical Guidelines, published in 1934

Richard Donchian changed my life.

Technical Guidelines

1    A move followed by a sideways range often precedes another move of almost equal extent in the same direction as the original move. Generally, when the second move from the sideways range has run its course, a counter move approaching the sideways range may be expected.

2    Reversal or resistance to a move is likely to be encountered:

A. On reaching levels at which in the past, the commodity has fluctuated for a considerable length of time within a narrow range.

B. On approaching highs or lows.

3   Watch for good buying or selling opportunities when trend lines are approached, especially on medium or dull volume. Be sure such a line has not been hugged or hit too frequently.

4    Watch for crawling along or repeated bumping of minor or major trend lines and prepare to see such trend lines broken.

5    Breaking of minor trend lines counter to the major trend gives most other important position taking signals. Positions can be taken or reversed on stop at such places.

6    Triangles of ether slope may mean either accumulation or distribution depending on other considerations, although triangles are usually broken on the flat side.

7    Watch for volume climax, especially after a long move.

8    Don’t count on gaps being closed unless you can distinguish between breakaway gaps, normal gaps, and exhaustion gaps.

9    During a move, take or increase positions in the direction of the move at the market the morning following any one-day reversal, however slight the reversal may be, especially if volume declines on the reversal.”

I love reading the trading ideas from a long time ago. We progressed a lot yet not at all. Chart trading is a powerful tool. Donchian is talking about it in these guidelines from 1934! I recently put together a FREE training on a updated type of chart trading called Holistic Trading. Click here to claim your FREE training. I think you will learn and earn!

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The Most Important Webpages for Trading!

Please check out today’s educational video.  “The Most Important Webpages For Trading”   Click here!

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Tech Tantrum!

Friday’s tech savaging continues today. The NASDAQ has already dropped almost 5% from high to low in just two days.

The size of the move on Friday combined with the heavy volume suggest that this is a major high for the index. We are seeing other sectors, such as consumer staples and utilities rallying sharply as investors move from tech to safe havens.

I liquidated nearly all my tech position by Monday and will wait until I think of investing in this sector soon from a position perspective.

But, as a swing trader, I’ll be buying Facebook (FB) if it closes higher on the day. Right now, as I write this, we are seeing an initial plunge but now FB is rallying sharply. This type of price action usually leads to a pop to the upside that is very traceable and I look to make some money. I’ll be taking profits of about $4 per share at about 151.00.

This swing trading style is the subject of a free video training I just posted. You can watch if free by clicking here.

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TRADESMITH video Free version – June 12, 2017

What a difference a week makes! Watch TradeSmith to find out all details!

Courtney Smith’s market forecast, TradeSmith, provides valuable insights on the market from a Professional Trader with over 45 years experience. Courtney Smith is the only person in history to have managed atop ranked Hedge Fund, Stock & Futures Picking Newsletters, & Mutual Fund. Watch & learn from a master trader’s analysis of the market. Courtney has been featured on TV over 1000 times and trained on hundreds of stages around the world to tens of thousands of traders worldwide. Subscribe to the Premium TradeSmith Podcast to receive additional insights and specific trade recommendations at http://bit.ly/WeeklyMarketForecast

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FREE Mindmap: Plan Your Trade, Trade Your Plan

He called me in a panic.

“I’m in a position and it is going against me badly!”

I asked him where his stop loss order was. He told me he didn’t have one. He told me that he was so confident in the trade that he never considered that it would go against him.

Now, his mind is blown. He can’t think straight. His emotions have taken over. He was sweating hard. His heart was beating hard.

I asked him what his plan was when he entered. He said his plan was to take profits at a level which was 100%.

I said, “that’s not a plan! At best, it is half a plan!”

I told him to immediately eliminate the trade and take the loss. That clears his mind and he can think clearly again.

But the initial error was that he didn’t have a plan. He winged it. That is a recipe for disaster!

I’ve put together a mind map which outlines the critical things you need to think about to plan your trade. You can get it here. It’s free.

Having a plan creates a calm feeling about your trading. You know what to do no matter what happens so you do not have to make decisions under pressure.

Pick it up here and really study it.

Make sure that you consider each factor when you look through it.

Good Trading!

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Go Big or Go Home!

Should you go cold turkey and jump into being a pro trader? Or should you keep your job until you are profitable and then quit? In other words, should you keep a safety net under you before you quit.
 
I’ve done both.
 
I’ve been pretty poor with a wife and kid to support and did it as a trader. But I was running scared all the time! It was not a pleasant experience! I don’t recommend it!
 
But, at the same time, I had to be really committed to success. I had burned my bridges and was forced to execute my trading plans flawlessly. I learned more in a shorter time because I had no choice.
 
When we have a job then we have the ability to slack off and push our trading to the side.
 
I have a consulting client right now and he is in this situation. He is smart and really wants to quit his job but his job takes up nearly all of his time and mental bandwidth. So he makes money when he takes the time to focus on trading and then goes through times where there are no trades and everything drifts.
 
I can’t in all good conscience recommend you quit your job until you have a good capital base and a track record of success. You are the only person who can make that decision.
 
I was young when I did that. It worked out fine. But it is not for everybody.
 
I think it comes down to your personal psychology. Are you prepared to Go Big? Are you ready to make the commitment necessary? Or do you want to play it safe?
 
Both answers are fine. You have to look deep into yourself to find the answer.
 
In either case, you should look into raising your trading ability to the level so that you have the choice! I’ve put together an online course called How To Quit Your Job Trading Stocks and Options. I’ve put together a mini-course that is free and you can get instant access by clicking here now.
 
Go there now. You will learn a lot for free! Check it out here. 

 

Happy Trading!

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