10 STEPS TO TRADING SUCCESS

1. Psychological weakness. This will be the biggest hindrance to your trading success. When becoming a member of Stockradar my aim is to maintain your emotional balance and keep you performing at the highest level.
2. Trading is about probability. We learn to contain our losses and  leave winning trades to appreciate until they are stopped out. There are two main reasons you won’t make money from the market.
   A.  If there is no system or method. This is trading knowledge.
   B. If you don’t commit to the system or method. This requires psychological discipline.
3. Objectives, strategies, and plans.  This is how we reduce our stress and encourage confidence in the method. The method creation starts with an objective.  The objective is to achieve absolute growth in your portfolio year on year. The focus is on a weekly system holding for the medium term to longer term.The benefit:
   1. Minimal number of trades
   2. Minimal brokerage
   3. Hold for medium term – no short-term trading
   4. Limit drawdowns that are psychologically manageable
   5. Have a reasonable win rate
   6. Have a minimal number of losses in a row.

   The stock universe is defined.
   Capital allocation is decided by portfolio size.
   Our ability to quickly move to cash is a big advantage.

4. Highly focused portfolios. Portfolios are based on conviction not diversification.
5. Good trading requires sound decision making.
   –  Having conviction in decisions so the better trader you are the more money you make.
   –  It is not possible to predict the market
   –  Trend trading waits for a trend ‘evidence’ by definition to develop before buying and waits for a trend ‘evidence’ by definition to end before selling.
   –  Statistically stocks rising in up trends continue to rise.
   –  Odds are they will be higher next week than this week.
   –  There are no good or bad stocks, only stocks
6. Aim for a 50/50-win rate.
   –  This may not seem great, but it is a beginners error to focus on the win rate.
   –  It is the amount of money you make on each trade that makes all the difference.
   –  Good trading lets wins grow and sells losers.
   –  Money realised from sales is redeployed in another stock.
   –  Risk on each trade still remains the same.
7. Method results statistics underpins the probability of you winning
   –  Pareto principle: 20% of your trades will generate 80% of your profits.
   –  Testing creates a probability factor.
   –  Results include dividends.
8. Your Trading Success is influenced by a combination of the objective, the system, and the discipline to execute.  Two of these are done for you, with my portfolio service and if you then have the discipline to execute effectively profits will flow.
9. Method:
   –  Entry signals: Trend Reversal or New High
   –  Exit signal: Predetermined stop
   –  The system is rule based for every decision
   –  The steps in the method and governing rules tells a trader exactly what to do under every circumstance.
   –  Refer to Stockradar home page – About-Stockradar Trading Strategy
10. Performance
    –  19 years performance history.
    –  Such a method executed with discipline will easily outperform buy and hold
    –  No method is perfect.
    –  The Top 100 market capitalisation of stocks has been reset every 6 months for the last 19 years. Today’s top 100 stocks are very different to the stocks 19 years ago.