Let's talk about: why does it take
to be a highly successful
trader?
You see, most people
want to trade.
And then again,
they are fearful
and say, OK.
What do I need?
And often,
they are focused on the wrong things.
So, here are the three
things that you need in order
to become a successful trader.
The first thing that you need is
money.
DUH! Yes,
but when trading,
it takes money to make
money. You need to have at least
$10,000 in your account.
But the good news is that many
people already have $10,000 somewhere
in a 401k,
in an IRA,
that right now is not doing
anything.
And there are ways how you can use
that money to start trading.
However, if you don't have
any money,
trading is not magically
putting money into your account.
So, the first thing is,
make sure that you have at least
$10,000.
One of the biggest mistakes that I see traders
making is they start trading
with too little money.
They hope that they can make
a living with trading starting
with only $1,000.
And you see,
this is not realistic.
You need at least $10,000
to get started because you want
to apply the 2% rule
and what does this mean?
The 2% rule means: always
limit your risk to 2%
of your account.
Now, with a $10,000 account,
this means that you can risk $200
and honestly,
that's what you need to trade in the
markets because if you risk less than
$200,
there's not much money to be made.
Number two, you do need
a proven trading
system and what does it mean?
Well, first of all,
here's what a trading system is.
A trading system tells you three things.
It tells you what to trade.
So, here's specifically what stocks to
trade. It tells you exactly
when to buy
or sell a stock so,
when to enter.
And it tells you when to exit.
I like to distinguish the exits between
a stop loss,
right? When the trade goes against
you and a profit target.
So, you need to have a
trading system
with very clear rules
so that you know exactly
what to do in any given moment.
You have seen my charts.
You see that right now;
I already know when to
exit.
So, I entered
and now I have my trade on autopilot.
I do not use any discretion
in my trading,
right? I have my rules,
and I have my trading system,
and I follow this system.
Now, why do I say a "proven"
trading system?
Well, you want to make sure that the trading
system that you're using actually
works and what's the easiest
way to find a trading system
that works?
Talk to somebody who is actually using
it already
and has success
with it, right?
Don't try to develop your
own system.
I made this mistake in the beginning.
I remember back in 1996,
I started programming my own
trading systems because I thought:
I have a programming degree,
right? I'm smart enough to program
my own system.
You know what?
That didn't go well.
I wasted three years
chasing the Holy Grail.
Just look for somebody who has
a proven trading system
and follow this.
If you're interested in the trading system
that I personally use,
go to mytradingroutine.com.
That's where you'll see a video that shows you exactly
how I find the best stocks to trade,
when to enter,
and when I exit.
Again, this is mytradingroutine.com
or if you would like to come to
our boot camps that we do live
in person, go to bootcamp.rockwelltrading.com
and we'll spend a whole
day with you,
I believe it's five
or six hours,
where I'll show you exactly what
we do. Third is you have
to have the discipline to
follow their system.
Now let's talk about the example
that I had today.
So, I entered a stock SLCA
and I had my profit
target in the market,
and it was at $16.96
and today,
it went up to $16.90 and
just shy of my profit target,
it stopped
and then reversed.
So, did I panic
or tinker with this?
No, not at all right.
I mean, I have my system.
I know that in the long run,
it will work out when I follow
the system.
In summary, here are the three things
that you need if you want to
become a successful trader.
Number one, you've got to have some
money. Number two,
you need a proven trading
system. And number three,
and this on you,
you need to have the discipline
to follow this system.
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You have a terrific evening.
All right.
Thanks for hanging out.
Take care.
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