Tips to Finding Other People's Simple Trading Plans
Did you know you can make money (and a lot of it) by simply modeling someone else's trading plan? Yes, it is true. Unbelievably, there are many of trading gurus doing it RIGHT NOW.
All you do is model your system on an
already tested and proven trading plan.
If you are new to trading, or even if you have been trading a while, this is a secret very few successful traders talk about. You see, many successful traders diversify their trading float by trading other peoples tested systems - because it is so easy to do.
There are several reasons to start construction of your own trading system by stealing or borrowing another trading system's ideas and concepts.
FIRST, as I said, it is easy. There are some pretty good trading systems out there. Some are free and some are very expensive. The costs of these systems are not an indication of the value of the system. The problem with some trading systems is that they might not work for you. Now I am not talking about out right dishonesty, which is a big problem when trading. Rather, I am talking about your ability to effectively trade with the system that you are using or buying.
You need to use a system that matches your life style and personality. If you have a day job (not trading), do not use a system that requires you to stare at a screen all day. You will be distracted at work and miss the opportunities to make money or worse you will not close a trade effectively and will lose money.
An excellent trading method made famous by Richard Dennis and William Eckhardt and sometimes referred to as Turtle Trading, is one of the best trading system that I know. They obtain returns in excess of 20 to 100% per year. With that said, could most traders trade their system? Not a chance! Dennis and Eckhardt also loose on over 60% of their trades.
SECOND, do not reinvent the wheel. Face it, if you are a new or even a fairly serious trader, what is the possibility that you will come up with a totally new concept? There are some very smart and wealthy traders out there. Why not use their ideas? Remember Dennis and Eckhardt in the above paragraph. Their system is based on a "breakout" method.
I know most traders could not trade using their exact method but they could take components of it, like breakouts to validate or confirm a trend.
THIRD, use other systems to give you the basics of what is necessary in a system to make money.
So I guess the question is now... where do you find good trading plans to model? Before you start looking for trading plans, you need to have some sort of a check list. Take out a piece of paper and write down different things you want to accomplish with a trading plan. What do you want to learn? Go from the gut, your heart and pick things that mean something to you. If you just randomly select items off of a page on the internet, your list will not have meaning and personality and that is what you want. A system that you can personalize to fit your lifestyle.
This checklist will help you find successful trading plans that already work without developing your own. Develop a habit of constantly snooping around and doing research. I am constantly looking to see what other people are doing in the trading arena and if you keep it up, you will too.
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