This ‘secret’ is to simply follow up to make sure that you are doing everything properly!
Now, DO NOT stop reading this and say, ‘yea, yea, follow up, I know’.
There is an exact procedure that must be followed. When this is followed, traders are always shocked and amazed at the results.
1. Print out the chart for the relevant trade you took.
2. Write the name of the trade you took on the top of the chart (Put or Call)
3. Take a ‘green’ marker, and mark in the correct entry, stop, targets, and management, based on your trade plan.
4. Now take a ‘red’ marker, and mark in the actual entry and exits you had based on your trading records.
5. Now decide if the play you made was substantially correct according to your trading plan.
If it was, write a ‘good’ on the top of the page.
6. If the play was not correct according to your plan, write a ‘bad’ on the top.
7. If the play was bad, put the reason why on top.
Save these until the end of the week. Over the weekend, take all the ‘good trades‘ and start a binder of good trades, saving the best examples of each of your trades.
We are very visual people, and learn best by pictures.
Take all the ‘bad’ trades and categorize them by the reason they were bad.
Take the number one mistake you committed that week, and do whatever necessary to resolve that problem the next week.
Eliminate ONE mistake every week.
Please keep a couple of important rules in mind.
First of all, this process MUST be done at least 30 minutes AFTER you’ve finished trading for the day
Traders often do not think properly when the market is open, and you will ‘rubber stamp’ any trade you do if you look at it soon after you close out the trade.
The best case is to wait until that evening.
Second, it is BEST to hand write on the chart.
Print the chart, then use your own hand to write on the chart.
Many like to use Power Point or other software, but the best learning will come from having all of your senses involved.
If you must, it is better to do this on the computer than not at all, but try doing these by hand, as shown in the example the end of this email.
If you are serious about your trading, see how well you currently do at this, and vow to follow it religiously for a week.
You may be surprised.
Stop and take this lesson seriously.
These ‘secrets’ will change you career, if you are not doing well now, and if you actually do what they say.
The point of this is simple.
The glory of this does not come from a chart, it comes from the discipline to follow a plan, and more importantly, the discipline to check to see if you are following that plan.
By following up in this one area, you may be able to stop the majority of your losing trades.