Dear fellow students,
You should know that I get pretty mad with some of you. You call or write and say you did this and that trade and come to find out youve got 2 grand in your account. Not for long you dont. The smaller your account funds the LESS you should be trading! The less you have, the more disciplined, more articulate and more patient you MUST be. Not should be. MUST be.
Now sadly I have gotten word back that you guys are trying to trade the trades I put on the nightly emails. You think I am trading all these markets. Some I am and some Im not. A position trade is a position trade but nothing is cast in stone until I see what has happened during opening range. And if the bugger gaps, I walk away. If it goes high then falls of low, I walk away.
The trades I post are ones I want you to look at. I want you to see how our methods could be applied, should be applied to these formations. Its up to you to determine if you want to invest your paper dollars. I dont give you trades. I try to point out trades you should look at.
In my emails I used to rate the trades one ($) thru five ($$$$$). But I had to stop this. Too many people were simply trading the three $$$ and above and not learning to trade. They were just relying on me. The problem I had with that was these two things: (1) you werent learning and (2) what if I had done a $$$$ or $$$$$ and you put all your money on these trades and lost it? You know what. I can put 10 grand in your pockets and (we) are doing fine. But wait if you lose $500 one time and then you let me have it. This is the nature of man. We have put trades on where we have made a lot of money – one or two people write and say cool trade. But if we lose 2 in a row or single 300 bucks then my mailbox goes on overload.
I never trade a market thats NOT been talked about in Toms Daily Emails. But I may name several markets to look at and not trade any. Overtrading kills the shortfunded trader. I said overtrading kills the shortfunded trader. You must sit on the sidelines until the right trade appears. Not good. Not decent, but GREAT. Something that is clearly defined and meeting our methods criteria to a “T”. Something with a lot of profit potential and little risk.
Now if I was to post only these trades youd might be getting an email that simply says “Nothing today, bye”… And youd be mad at me for not giving you your moneys worth. BUT WE ARE LEARNING HERE FOLKS!
Look at it this way. Lets say you traded 4 times a week. Some daytrades and some held overnight. Now add up the hours you are in the markets. Over twenty hours right? So for 20 hours you are on edge. For 20 hours you are vulnerable to the whims of market fluctuation. For 20 hours you are at risk of losing it all. Wouldnt it make better sense to wait for a GREAT trade, use multiples, get in for a few minutes or couple of hours and then take the money and run?
Trade like the hawk folks. Trade like the hawk. A two cent move in corn is worth $100. Big deal. That will not impress your mother. Little kiddies might think its a lot but the people who send you the monthly bills are not little kids. But a two cent move in corn with you having 4 contracts is $400. That money will pay a bill. That money will buy a nice weekend for you and your darling. And two cents is a nothing move.
Quit this dang overtrading!!! Okay Im really not mad at you. I just want you to be more conservative and be confident in a trade before you put it on. I want you to make money, not toss it away foolishly.