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SUCCESS BLUEPRINTSSavvy strategies for profitable traders.LETTER FROM THE DEVELOPERImagine having a TradingTeam at your fingertips.What if you could consultwith a Forex, Futures,Stock or Options Expert atany time?Trading is a solitary endeavor but havinga team can make you far more successful.Having mentors is pivotal to succeedingin something as challenging as trading.In your hands here (or on your screen),you now have that Trading Team. OurNetPicks Coaches are pros in trading,educating and mentoring.Here you have some of their very besttraining, tutorials, tips, guides andblueprints to making it as a trader.That guy Ben said, “An investment inknowledge always pays the best interest.”Even better for you the knowledge inthese pages is simply an investment intime.I’m convinced that experiencing what liesahead in this document are more pearls oftrading wisdom than you’ll need. Thinkabout it, if you get just one golden idea,just one idea or concept that sparks animprovement in your trading what wouldthat be worth to you?In particular, with trading you canreplicate the same solution over and overagain profiting each time.Talk about a great way to build a business.After all, Mr. Franklin also said a pennysaved is a penny earned. He definitelycould have been one helluva tradingeducator!Benjamin Franklin said, “Tell me and Iforget, teach me, and I may remember,involve me and I learn.”My advice? It’s simple. Do. Not. Put.This. Down.By working through these tradingtutorials and training, you will becomeinvolved in your trading. You will learn,and you will master.If you do, you won’t get back to it. Ifyou start now and make it a goal to getthrough 2-3 tutorials each day you willhave a completely new outlook. Yourbottom-line will thank you.Our Coaching Team is sharing decadesof collective wisdom here. Ron, Mike,Troy, Shane, James, Will and othershave walked in your shoes. They havestruggled, they have persevered, theyhave faced challenges and obstacles alongthe way. Ultimately each has succeededand survived the path you are currentlyembarking.Special CollectionA 97 Value(800) 515-0335(949) 481-2396info@netpicks.comCONTENTSTake What the MarketGives You . 2The Gap Between TradePlanning andExecution . 32 Simple Trade SetupsUsing Trapped Traders . 4Need to Boost yourProfits? Try this EasyOptions Trade. . 6Seen any Good TradeRooms Lately? . 7Simple Chop Indicators –Part 1 . 8The CrazZy Otto ChopIndicator .9Trading Binary Optionson Nadex .10Great Trading!Charting the RightSession Times inFutures . 13Mark SobermanNetPicks.comCONTINUED ONNEXT PAGE
CONTENTSCONTINUEDHead and Shouldersabove the Rest .20Wisdom of a TradingLegend .145 things you need todo to “Live ThroughDrawdowns”.21Algorithmic Tradingis the Best Only Wayto Get a Grip on YourEmotions .16How to Know When toStop Trading .17All Traders Need aBreak .18Is Mediocre yourModus Operandi .18Custom PaintBars inTradeStation .193 FX Trading Tips toImprove yourTrading .28The Essentials toSuccessful eMiniFutures Trading .30Trading School .23How to Cut Down onScreen Time usingMarket Internals .24Is the Pursuit ofPerfection Slowing youDown? .25Trading withMindfulness .26Becoming anAlgorithm .27The Single MostImportant Indicator 31Take Targets theMarket Gives You .33The 100 Year Stormand the Power of Oneand Done .34Another FreeIndicator? .36The Teacher Appearswhen the Student isReady .37TAKE WHAT THE MARKET GIVES YOUIf you’re an active day trader, the chances are high that you’ll trade asmall number of products or you’ll exclusively trade a single product.By doing so you’ll have the benefit of learning product specificcharacteristics and becoming more in tune with market context. Butthere’s a possible downside to this too – sometimes markets moveabout a lot and sometimes they are painfully slow. Whilst in itselfthis shouldn’t be an issue, for many aspiring traders it seems like aCatch-22 situation. When markets are particularly slow it seems likethere aren’t enough opportunities available for them to learn anddevelop their skills, but if they try to find trades where there are nonethey will often find themselves taking losses and more importantly,having negative learning experiences such as fighting the market.Learning to take what the market is willing to give is a skill in itself.HYPOTHETICAL PERFORMANCE RESULTSHAVE MANY INHERENT LIMITATIONS, SOMEOF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANYTRADING ACCOUNT WILL OR IS LIKELY TOACHIEVE PROFITS OR LOSSES SIMILAR TOTHOSE SHOWN, IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEENHYPOTHETICAL TRADING PERFORMANCERESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULARTRADING PROGRAM.ONE OF THE LIMITATIONS OF HYPOTHETICALTRADING PERFORMANCE RESULTS IS THATTHEY ARE GENERALLY PREPARED THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL2www.netpicks.comExcel withTradeStation .37Is Profitable TradingCloser than you MightThink? .39What Exactly is anAlgo? .40Garbage In – GarbageOut! .41How Other Marketscan Influence yourTrading Decisions .43Are you Ready forBinary Options? .43Learn to Profit fromChoppy Markets withOptions Trading .46Patience with aTrending Market .47Are Global EventsChanging the TradingWorld?.49Caught in a Blizzard;The Story of TwoTraders .50How to Pick the RightTrading System .51We Like to Give youFree Stuff .50The ExistentialPleasures ofProgramming TradingSystems .45By James KessickA Cocktail of IssuesBoth the urge to trade and the assumption that there won’t be manyopportunities can give rise to a number of struggles that can define atrader if they’re not careful. At the most basic level, your p/l is likelyto be adversely affected. Losing money or missing out on profits ina way that is contrary to your plan can have a negative psychologicalimpact on a trader. Particularly with over-trading, emotional energycan quickly become depleted. This is stressful, demotivating and cancause a trader to take the wrong lessons away from their losses –and this has the potential to create major obstacles over an extendedperiod of time. But also missing opportunities that should have beentaken in accordance with your plan, either by not being focused ontrading or because the other trades you’ve already taken have pushedRISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THEIMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADINGLOSSES ARE MATERIAL POINTS WHICH CANALSO ADVERSELY AFFECT ACTUAL TRADINGRESULTS. THERE ARE NUMEROUS OTHERFACTORS RELATED TO THE MARKETS INGENERAL OR TO THE IMPLEMENTATION OFANY SPECIFIC TRADING PROGRAM WHICHCAN NOT BE FULLY ACCOUNTED FOR IN THEPREPARATION OF HYPOTHETICAL TRADINGPERFORMANCE RESULTS, AND ALL OF WHICHCAN ADVERSELY AFFECT ACTUAL TRADINGRESULTS.PAST RESULTS OF NETPICKS ARE NOT INDICATIVE OF FUTURE PERFORMANCE. THEMONTHLY AND COMPOSITE ANNUAL RESULTSSHOULD BE VIEWED AS HYPOTHETICAL. INREALITY, THE RESULTS DO NOT REPRESENTTHE TRACK RECORD OF THE METHODOLOGYORIGINATOR OR SUBSCRIBERS. THIS ALSOMEANS THERE IS NO GUARANTEE THAT ONEAPPLYING THESE METHODOLOGIES WOULDHAVE THE SAME RESULTS AS POSTED. SINCETRADING SUCCESSFULLY DEPENDS ON MANYELEMENTS INCLUDING BUT NOT LIMITED TO ATRADING METHODOLOGY AND TRADER’S OWNPSYCHOLOGY, WE DO NOT MAKE ANY REPRESENTATION WHATSOEVER THAT THE ABOVEMENTIONED TRADING SYSTEMS MIGHT BE ORARE SUITABLE OR PROFITABLE FOR YOU.www.premiertraderuniversity.com
you to your daily loss limit, can be mightily frustrating. Fear ofmissing out can then cause you to second guess the market.In addition to p/l and psychological issues, a hugely important issuethat people often forget about is very simply about understandingthe efficacy of a strategy. Taking trades outside your plan “muddythe water” and make it harder to assess the efficacy of a particularstrategy. Of course it is possible to manually tag each trade you takewith the strategy it’s using in your trade journal/log, but many don’tdo this. Having the chance to assess a strategy on its own merits iscrucial to being able to develop it and your own trading skills. Evenif you do have a way to differentiate trade types, you’ll find it harderto pick apart over-trading or keep a log of trades you didn’t take.Que Sera, Sera The solution to this issue like many others in trading is a change ofmindset. When you sit down to trade, you must believe that marketsprovide an endless stream of opportunities and you cannot alwayspredict when the next one is likely to be. So you must allow themarket to determine the frequency of opportunities that it advertisesto you. Not forcing trades and trying to find ones where there arenone, but also staying focused enough to catch the ones which dooccur even in quiet markets, will allow you to remain in tune withthe markets and on track with your trade plan. Accept that themarket will give what it wants to on any given day and is rarely thesame from one day to the next. Finally, if you are learning and arehungry for trading experience, make sure you focus on the tradesthat you do take in order to learn all you can from them.THE GAP BETWEEN TRADE PLANNING AND EXECUTIONby James KessickOne of the biggest problems a trader faces is bridging the gapbetween trade planning and execution. Think about it for aminute. How many times do hear a trader asked if they did whatthey said they were going to do? How many times is the answer“No”? Getting from a strategy looking good on paper to real-worldtrading performance is what it’s really all about.Why is it so common that traders struggle with this issue?Have I got issues Doc?not always easy to extricate yourself from the bs when you’re in thethick of a volatile trading session.And here’s where market preparation comes in. As part of yourpre-trading preparation, taking the time each day to look at a dailychart and assess what the overall market conditions have beenand are therefore likely to be, can really help you to align yourstrategy with what the market wants to do – you should always tryto apply your day trading strategy when it’s likely to be at its mosteffective.The first idea that many people will consider is that it mustbe a psychological issue. But there’s a big difference betweenpsychological problems that come out during trading andnatural emotional responses caused certain types of situation.Sure, different individuals might have varying degrees of tolerance,but frustration after a series of losses for example is a reasonableemotion to experience.Confidence in a planSo if it’s not about some kind of psychological malfunction, thenwhat?But there are at least a couple of other really important benefits toback-testing. The first is that it helps you to think in trade sets andthis is essential to making sure you stick to your plan even if it lookslike you might take a loss. A trading edge plays out not over a singletrade but over many trades.Do you know what you’re doing?Just in case anyone is in any doubt about the importance of backtesting, let me make things clear – if you don’t back-test your strategy,you won’t know how it has performed over time and you will be leftwith doubts about how effective it is. If you are left with doubts, youwon’t execute flawlessly every time a setup presents itself to you.The issue that I often see is that people aren’t particularly confidentin what they’re doing and this can be rectified with a little guidance.Understanding what it is that you are trying to achieve and whatconstitutes reasonable results can go a long way towards settlingnerves and allowing a trader to simply execute how they haveplanned to do so. Clarity of mind and consistency of approachwill help you to start to realize the potential of your strategy.The second benefit is that if you back-test in a particular way (whichI’ll come to in just a moment) it can really help you to iron outany ambiguity in the rules of your trade plan because you see somany trades in such a short space of time. Diligence in coveringtrade plan ambiguity can help you to master the hard right edgeof your charts.The idea behind a strategyEntries/Targets/StopsLet’s say that you have some day trading strategy – you’ve seen thestats and you know that it’s performed well in the past. But whenyou trade it, it seems like you can barely turn a profit.One of the simplest things you can start to do in order to remove anytrade plan ambiguity is to employ a mechanical trade managementscheme. If you know where your entries/targets/stops are before youtake your trade, there can be no mistake as to where you shouldhave executed.The idea behind a strategy often gets lost when you’re executingit. So a strategy that’s really great for trending markets for example, isclearly not going to be especially effective when markets are tradingin the middle of a range. Now this might seem fairly obvious, but it’sthe higher time frame to your own that will drive your setups and it’sThe Trend Jumper system uses just such a method. But the reallygreat thing is that it dynamically adjusts the size of the trade basedon the conditions when the setup formed.continued on next m3
But the key to this and going back to the idea of ironing out tradeplan ambiguity, is manually advancing your charts bar by bar andpaper trading the setups as they appear. You’ll be making lots ofdecision
strategy with what the market wants to do – you should always try to apply your day trading strategy when it’s likely to be at its most efective. Confidence in a plan Just in case anyone is in any doubt about the importance of back-testing, let me make things clear – if you don’t back-test your strategy,
