Let’s face it. As humans, we are emotional beings. Happiness, sadness, fear, hope – it’s present in everything we do, whether we’re watching the news or running a marathon.
But trading on emotion can be the kiss of death. It can cause you to cut a winning trade short or let a losing trade run.
That’s why it’s absolutely crucial to separate emotions from trading if you want to make money in the stock market.
In fact, it’s the second step to becoming a successful trader.
I realize, though, that taking emotions out of trading is easier said than done. And that’s exactly why I’m here – to show you the simple solution.
To manage your trade, you always need a trade plan that uses all aspects of the trade. Check out the sample trade plan below from my Money Calendar Pro service…
Now remember… this is just an example of how you can set up your own plan. This is not a recommendation for you to trade – and even if you tried, you wouldn’t be able to since the option’s expired.
With all your decisions made beforehand, your trade plan will be your guide through thick and thin. No matter what you’re feeling (e.g. greed or fear), all of your exit conditions are “caste in stone.”
All you have to do is follow the rules.
From the Mailbag…
Reader: New retiree here. Now that I’m out of the office, I need to make the most out of my strict income and I don’t want to spend all day by the computer. Should I stick to buying stocks and holding on to them? What about dividends? I’ve got a few in my fund now… but I’m only earning a few cents. Any advice?
Tom: First off, congrats on your retirement! A lot of people think that the “safest” or “best” way to make money once you stop working full time involves holding onto stocks… but that’s not going to help you grow your wealth quickly. And if you’re anything like me, you don’t just want to sit around waiting for your next check – you want to be living the retirement of your dreams. For a chance to do that, you’re going to want to use a proven, profit-generating system (like my Alpha-9). This gives you a consistent stream of opportunities for as long as you use it. Plus, because the system is doing a lot of the heavy lifting, you only have to spend five minutes a day setting up your trades. No sitting at your computer all day, no searching the market for the best opportunities, and no measly dividend checks – just real, money-generating opportunities every single day! What’s better than that?!
Reader: All of my buddies think we’re heading into a recession – what’s your take?
Tom: Here’s the thing – historically, bull markets only last about five years. So we’re overdue for a major correction…
I suggest you make sure your portfolio doesn’t take a hit by insuring your stock “property” with puts and covered calls. With this strategy, you’re ensuring that regardless of which way the market turns – bullish or bearish – you’ll be protected. I dig into this with a few examples right here.
America’s #1 Pattern Trader