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The first thing should be to have a Trading Master Plan.
To prepare for trading using the TradeFinder Modern Trading system requires that you have preparation. We will go through them in some detail.
This plan aims to guide you through a series of questions. As you do this, you will think of many things you should consider when trading. Remember that by thinking through the entire process, you will be doing things more clearly and completely. This will reduce the chances you quit trading because of frustration. The Trading Master Plan should have the following elements.
Think through and set your objectives for trading. Are you doing it to build a nest egg? Or do you want to increase your monthly income for retirement? Or is it for a specific purchase you want to make at some point? There are many different reasons to trade. Define the one that best fits your situation – write it down. Also, determine how much time you have to work on this goal. This is often called a “Risk Horizon”. Set it down in writing. You will refer to these things many times as you travel the road of stock market trading.
Does Swing Trading meet your needs. As discussed before, swing trading is making a number of smaller trades with each lasting for between 1 and 5 days.
Classically, there are many strategies to trade with. You can trade by using technical indicators (moving averages or oscillators, etc.) and position trading (long-term investing), to name a few.
Using the TradeFinder Modern Trading system, you will have the advantage of an algorithmic trading system with particular rules based on Artificial Intelligence generated next-day stock predictions, the NeuralMatic Predictor tool.
You should have realistic expectations that should be specific enough to be analyzed periodically. The first one should be “lose no money.” This does not mean that every trade you make will be profitable. I can promise you that many of your trades will be losses. It is just a fact of trading. But your expectation of a profitable week, month, quarter, etc., is realistic. The amount of your gains (and losses) is directly tied to the amount of your trades.
Start by determining what your anticipated average trade cost will be, then using 3.5% – calculate what your average gain on that trade should be. You may be saying to yourself that 3.5% for each trade is not a significant, impressive number. Well, actually, it is – here is why. If you trade $1,500 and gain 3.5% after, say, 5 days. That is an annualized return (ARR) on investment of 59%. These large percentages are because the trades are very short in duration. They will average about five days.
If you are an average trader, you cannot help but ponder the condition of the market. Is it moving up or down? Will there be a cliff where things fall like a rock? The good news is that if you use the TradeFinder Modern Trading system – you don’t care because you will be making money if it goes up or down.
We have talked a lot about risk management and how we address it. That being said, you should satisfy yourself that our risk management rules are acceptable. As a reminder, our risk management rules are: 1) Spread trades out with lots of smaller trades, 2) Keep trades in short duration, 3) Use Algorithmic trading rules – and stick to them, 4) Trade in both directions – Long and short positions, and 5) Use AI next-day stock movement predictions (NeuralMatic Predictor).
You will need to set down a reasonable routine to manage your trades. You need to do specific tasks each trading day. The stock market opens each trading day at 7:30 AM Eastern Standard Time. You will likely want to start your day by analyzing your NeuralMatic Predictor report early each morning. Determine what stocks you want to trade. (If you already have open trades from previous days, look in the predictor report and consider closing trades that have changed directions.) After compiling your likely list of trades, consult your brokerage account and determine the number of shares you will buy or sell.
Do the morning Trading as needed.
You will often want to revisit your brokerage account in the late morning or at lunchtime. Adjust your trades as needed. Then, since the stock market closes at 4 PM Eastern Standard Time, you will want to look at your account about a half hour before the market closes.
You do not have to do all of this, but it is a best practice to look at your account three times a day.
Throughout the website and courses, we will keep saying that you must follow the rules, not your fear. We know that it will not always be easy, but discipline is key to your trading success in the long run.
There will be times when everything in you says, “Close this trade.” Do what your best thinking tells you. What we want you to do is be disciplined, nothing more.
Give yourself some time to work on your trading. Every two weeks or so, sit down with a cup of coffee (or tea) and analyze your progress. Go through your Trading Master plan and your brokerage account. Consider your efforts and determine what you need to do to improve.
Another important activity is to read and study what others are doing. I only need to say that you should protect yourself from the nay-sayers around. Your friends likely have not done what you are doing and may fear the independence. Also, the economic news is, lately, quite scary. You need to be aware of it, but remember that you likely know more about this than they do. GOOD LUCK.