Your Trading Process is VITAL to your success trading the Stock Market

A written process that you follow religiously (and I don’t mean just on Sunday) is a key component to your consistent profits in the market. I don’t mean shooting the lights out with every trade. We are talking about being wrong as much as 60% of the time and still being profitable because we let our winners run (and pyramided when we could while maintaining the same risk level) and cutting our losers quickly – how good is that?! Let’s look at one element: Capital Allocation – more important than investment selection. My recommendation is no more than 10% of your portfolio per trade with an intelligently placed protective stop at a level of 2% risk to the portfolio. Your process will take you out of the equation. You will use objective rules that you will follow each and every time. We, the traders, are the weakest link. The toughest battle is not in the trenches of the stock market, it is between your ears. With a process you cease being a victim of your current emotional state, physical state, talking heads, and less likely to take stock tips from your friend Murray. You were doing better with the monkey and the dartboard anyway – weren’t you? For a copy of Basic Trading: Book 1, click and scroll down…

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