How to Lose 360k in Just 5-Weeks...

The ego can really mess things up [ST Logo] CASHFLOW SPREADS OPTIONS WORKSHOP COURSE Time is Money. So is Knowledge. Combine them and you have the recipe to write your own check. This is what the CashFlow Spreads strategy gives you. For the rest of your life, you will have the ability to potentially generate significant income with the strategy that has the most efficient risk/reward metrics available of any investment strategy out there. The Cash Flow Spreads Strategy actually provides you an arsenal of weapons that all take advantage of one, very powerful, proven concept. [Keep Reading](… --------------------------------------------------------------- How to Lose $360k in Just 5-Weeks… ----------- There are many ways ego can play a roll in sabotaging a trading venture… …and one of them is through risking more than you should on a trade or in the account as a whole. STORY TIME Back in the late 1990′s, I was invited to this exclusive “trading club” to help construct a trading plan for the members. We met at one of the member’s home in the hills of wine country in southern California. The home and the views were absolutely spectacular. It was a great setting to have a meeting of the minds and come up with some brilliant plans for trading. There were only 8 there, including myself. These guys were all extremely successful and independently wealthy. They were super hospitable, some of the nicest guys you’ll come across, especially in business where it can often be a cut-throat, shark eat-all environment. Not this group. They were genuinely wanting to help one another succeed at trading. The meeting began and I gave them some of the goodies I had been working on, and took the time to explain proper money management and the structure for properly developing a trading plan. The second day of the meeting, we got down to the nuts and bolts of what they wanted to do. We created a trading plan template for each of the members to personalize from. The meeting ended and each trader went home to start implementing their version of the trading plan. During the meeting, one of the guys had an S&P strategy he wanted to trade in a $500,000 account. He said he was willing to risk half of this account and trade it aggressively. As I questioned him on his experience with this particular strategy, I found out he had no experience with it, did not understand what it was doing (it was a black box signal service), and it had big stops. This was a time when the E-mini did not have a lot of volume, so S&P traders traded the big contract. A single contract drawdown expectation was about $25,000. He wanted to start with 10 contracts. After going over my many reasons for why he should definitely not start out trading 10 contracts with this thing, he seemed to agree and the plan was to start out with 3 and let the money management build it from there. About 5 weeks later, I get a call from this guy, almost in a panic. Turns out, he started trading the plan with 10 contracts, increased to 11 almost immediately, and then the system went into a drawdown. On top of that, in the middle of the drawdown, he thought he would outsmart the signals and use his own ideas for optimizing the entry and exit points. On one losing trade, he was for sure the stop was set exactly where the market was going to turn around, and when it didn’t he held on for just a bit longer in case he was only off by a few points… And as the market kept going, he continued to hold on with that thought in the back of his head…”it can’t possibly go much further without turning around”. Long story short, his $500k dropped to $160k in just 5 or 6 weeks. He didn’t know what to do, and as I asked him what in the world happened, he sheepishly told me about his decision to start trading with 10 contracts instead of the 3 the plan had called for. Nice guy. Successful. Smart. And his ego still sabotaged his trading plan, to the tune of $340k in just 5-weeks…and how? By Risking Too Much. One very telling sign that you are risking too much…when you can’t stick with the rules of the strategy or trading signals… Especially when you start holding onto losing trades and refuse to exit them because you think the market is going to turn around. Many Traders Don’t Realize That Risking Too Much is Often an Extension of The Ego Coming Into Play, and Because of It, They Don’t Know to Look For the Signs. Bottom line, you should never risk more in a trading effort than you are almost nonchalant about. In other words, you should be able to stick with the signals, even if they lose, because it just isn’t that big of a deal. Some traders may balk at this mentality. But that is the Truth About Trading. Trade Smart, Ryan JonesREAL full-time trader. --------------------------------------------------------------- Don’t Miss My Next Live Trade Call [ltcm7]( Once a week I meet with a select group of traders. I’ll go over trades I’m looking at, strategies, and answer questions. I want you to join me on these calls. We’ll be looking at: Trade Setups, Different ideas for Increasing Probabilities, Ideas for Increasing Profit Potential, How to Construct a Series of Low Risk Trades, Market Condition Changes, Exact Trades I’m taking and why. [This is a limited time invitation, so don’t hesitate](. [unsubscribe]( ©2024 by Spyrol Group ("SG"), Protected by copyright laws of the United States and international treaties. 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