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Table of Contents

1. Understand the Truth
2. Plan Your Trades, Then Trade Your Plan
3. If You Don’t Spend Much, You Can’t Lose Much
4. Don’t Think Money, Think Points
5. What the Mind Can Conceive
6. Be Your Own Boss
7. Mind Your Language
8. Less Is Definitely More
9. Get a Life
10. The Essential Real-Time Trading Tool 

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Introduction

Take two traders for example.
Give them the same starting capital, the same trading platform, the same market, and the same trading system with precise rules for entry and exit. Come back a month later and what will you find? One trader will be up 20%. The other will be down 40%.
It’s fascinating, isn’t it, how two people can have the same opportunities in life, and yet get very different results. We at Futures Trading firmly believe that the answer to success lies within each of us; and that we are each completely responsible for our own results in the market. The following list was compiled from discussions that took place between our traders. Some of it you’ll already know... some of it will be new.
Hopefully you’ll find it useful.

1. Understand the Truth

Trading is a game of probabilities.
Imagine we’re flipping a coin. Heads I win one dollar - tails you win one dollar. Simple. Heads and tails will each come up half the time, and we’ll both neither win nor lose.
However, unknown to me, you have a loaded coin. For every 100 throws, heads comes up 49 times, and tails comes up 51 times.
You now have a license to print money. Let’s call it the “Tails Trading System.”
All you have to do is sit back and bet on tails forever. Eventually, you’d win all my money (and anyone else’s who took you on). All any trading system gives you is an “edge”. A favorable bias. Something that is more likely to happen than not.
Whatever trading system you use... pattern breakouts, trend-following, fibonacci, moving averages, channel following, oscillator signals, bollinger bands, swing trading, opening gaps... you are relying on a positive bias. Essentially, the trading system is saying “when ‘x‘ happens... ‘y’ usually follows.”
Sometimes it doesn’t. Most of the time it does.
All your trading system does is help you identify high probability trades. Some trading systems are better than others. But don’t get caught up on the search for the perfect system! You know, the trader’s Nirvana... the elusive “Holy Grail”... the system that delivers profits on demand and never, ever gets it wrong!
Find a trading system that you like. One you feel comfortable with. One you understand.
Then stick with it. Be consistent.
A cool, disciplined, trader will take an average system and make money with it.
A nervous, arbitrary trader will take a brilliant system and wreck it.
All traders have “good” days and “bad” days. Some days you’ll make small profits. Other days you’ll make small losses. And once or twice a month, on average, you’ll make big profits. That’s how we make money as traders. It’s not a 9 to 5 gig.
Problem is, you never know when the big trades are due to arrive. Like our “Tails Trading System” above, the one time you don’t take the trade is exactly the time the market takes off and never looks back. You MUST see the big picture. Realize that the current trade is only one of many. On that basis, the current trade hardly matters. It’s like a piece of plankton in a very large ocean. Trading is all about managing risk and then surrendering yourself to the oldest law in the Universe: The ancient law of probability.

2. Plan Your Trades, Then Trade Your Plan
3. If You Don’t Spend Much, You Can’t Lose Much
4. Don’t Think Money - Think Points