Stock Trading - Daddy, Why Arent We Rich?

One Saturday morning, while he was sitting at his computer studying the market, David's 7 year old daughter came up, tugged at his shirt sleeve, and said, "Daddy, why aren't we rich?" He looked his child in the eye, and thought to himself, what a great question - Why aren't we rich?

As she stood there expectantly waiting for an answer, he struggled to come to terms with the realization that, although he had focused his complete attention on trying to create wealth for more than 10 years, he had never actually made any real headway.

He had bought and sold many Stocks and several properties over those years, but had never made any real money.

He looked at his daughter, and asked, 'What makes you think we aren't rich, darling?'

She looked at him and said, 'Because you said that if we were rich, you and mom wouldn't have to go to work any more, and you both still work all the time. You said we could live at the beach and play in the sand every day. I want to know what you are doing about that. When can we go and live at the beach?'

Nothing like a child to cut straight to the heart of the problem - and what was he doing about it?

'We're not rich because daddy made some mistakes,' he finally answered. 'What kind of mistakes, daddy,' she asked. 'Well, I bought some shares that were going down and then didn't sell them soon enough. Then I bought some houses but sold them again.' 'Why?' she asked.

He had to think about that. He had no reason to buy those shares in the first place. He had no reason to hold on to them when they kept going down. He had no reason to sell the properties either. Her logic was flawless - why?

He had to change his strategy.

He owed it to himself and his family to finally get his act together and make some changes - that was the day the pain of not living up to his potential made him sit down and write out his trading plan and his goals...his strategy and rules - his life raft.

He started by writing out his vision - what he wanted his life to look like when he became a successful trader and investor, then worked backwards from there - through the details of how he was going to achieve his dream.

He saw in his mind the 4 bedroom apartment on the beach, the red Ferrari 360 Modena, the plasma screen computer monitor in an office overlooking the surf beach 7 floors below, the family holidays in the Greek islands, the significant donations to worthwhile causes and children's charities.

He visualized all the tremendous benefits of becoming a successful trader.

He realized that he was afraid of losing, and that fear was just too expensive to let it control his life any longer!

He decided that he would no longer accept anything less than full compliance with his trading plan.

He decided that he would take every trade entry signal and follow his trading plan as if his life depended on it.

As if, after each trade was closed out, he had to stand in front of a Panel of his trading Mentors, and explain his actions to them - why he entered where he did, where he placed his stop losses, why he exited when he did.

And if they weren't convinced he followed the rules of successful trading, he would be taken out and shot!

This certainly focused his attention on only trading strong trends - trends where the price bars were trading above their respective moving averages for long trades, or below for short trades, and the Stock price was moving strongly in one direction.

He pretended that if he couldn't justify his trading decisions to his trading Mentors, he was dead...

That was the day he resolved to study his selected group of Stocks, the ones that had a track record of trending strongly, every day. He would then take every trade his system produced, put his stop loss orders in the market as he entered each trade it a place where the trend had to change to take him out of the trade, and he would hold every position until the trend changed.

He would act 'as if' he was a great trader, even though his record up to that point had been less than inspiring...

That innocent question from a child turned out to be the start of David's successful trading career.

He started to trade profitably and consistently for the first time in his life. He thought he was doing well, and indeed he was making money.

He knew from his wealthy mentors that rich people are different; they make rational decisions based on facts, not emotions. They understand the value of money - they respect it as a tool for building a better world. They buy well for logical reasons and hold until there is a valid reason to sell.

Then one day, he closed out a trade, and excitedly told his daughter, 'Daddy made a big profit in the market today darling, come and look and see what I did.'

His daughter came over to the computer and looked at the screen as he excitedly showed her where he had bought a Stock and then sold for a $3000 profit. She looked at him and said, 'But daddy, it's still going up, why did you sell it?'

His smile faded as the power of that question sunk in...why had he sold it? What was he doing getting out of such a strongly trending Stock just to take a profit? What would his trading Mentors say?

She was right...the market was still open, so he bought back in again. He had never been able to bring himself to do that before - he was becoming a great trader!

The rally continued and he kept buying more as it rallied. The trend finally changed, but his profit on that trade, when he eventually got a valid sell signal, was $14500!

His daughter's question 2 weeks earlier was worth over $11000!

That was the last time he ever got out of a trade based on his emotions. His fear of the market was gone - thanks to some simple questions from a 7 year old...

So now, it's your turn. Whenever you are preparing to place a trade, find a small child, even if you have to borrow one, and ask them what the trend is. Then don't trade the other way!

If your trading isn't as great as you know it could be, decide to create a trading plan now that will become your life raft.

Remember, fear is just too expensive.

If you are afraid of losing money, reduce your position size until your fear goes away.

Once you have made a series of small profits, you will be trading with the markets money and you can increase you position size according to your growing confidence and account balance.

If you have a series of losses, reduce your position size again until you get back on the right track. Stick to your trading plan - whether it's the one that Peter outlines for you on the website or something else you have tested by paper trading until you are confident that it works.

Then, just do it!

To Your Trading Success,

Tony Spann and the Team

Stock Trading Review is dedicated to helping you succeed as a trader by sharing with you simple and easy to follow tips and techniques.

Discover more insider secrets and the exact proven strategies to trade stocks profitably: http://www.stocktradingreview.com

Copyright(C)2005 Stock Trading Review

one time home cleaning Highland Park ..
In The News:

Privacy risks are hiding in plain sight, as your personal data is likely being collected, tracked, and sold without your knowledge.
VenHub, a fully autonomous, AI-powered smart store just opened at the LAX/Metro Transit Center in Los Angeles.
A woman's Facebook account takeover reveals dangerous social engineering tactics and provides lessons on recovery, avoiding scams and enacting stronger security measures.
Shanghai engineers are using 432 walking robots to relocate a complex, preserving Shikumen architecture while creating space for a modern underground hub and cultural center.
Major healthcare data analytics firm Episource had a cybersecurity incident exposing 5 million patients' medical records and personal information in recent breach.
A new sophisticated PayPal scam sends legitimate-looking emails from official PayPal addresses, using phone numbers instead of links to convince victims to download remote access tools.
Fox News' AI Newsletter brings you the latest on this rapidly evolving technology.
The innovative Kara Pod device extracts moisture from air to create mineral-rich water and brew coffee, featuring UV sterilization and compatibility with Nespresso pods.
Gov. Hochul unveiled New York's nuclear power plant project to power a million homes, which faces permit challenges while promising jobs and a cleaner energy future.
SAFE introduces Aerie, an underground luxury bunker combining high-end living with advanced security, wellness amenities and interactive walls simulating panoramic views.
A Facebook scammer posing as Elon Musk tricked a victim with promises of a Tesla and $250,000, requesting gift cards that become untraceable once the codes are shared.
Experience hands-free golfing with the Robera Neo smart caddie that uses AI to follow you, navigate obstacles and carry your clubs with GPS course mapping.
Cybersecurity alert: 16 billion passwords exposed in massive credential database affecting major platforms. Protect your accounts with password managers
The innovative BeBot robot uses electric power to remove pollution from shorelines, covering 20-30 times more area than manual collection while preserving wildlife.
A new ClickFix campaign targets macOS users with fake Spectrum support sites, tricking victims with CAPTCHA failures to paste commands that install information-stealing malware.
AI-powered autonomous trucks from Plus Automation are being tested across the U.S., Europe and Asia to solve logistics challenges while facing regulatory hurdles and labor concerns.
Your health information might feel private and secure with your doctor, but the reality is far more complicated. Data brokers collect a wide range of sensitive health data, from diagnoses and prescription details to personal identifiers, and sell this data to marketers, insurers, and other third parties.
Kepler Robotics has officially introduced its Forerunner K2 "Bumblebee" humanoid robot at the SAIC-GM automotive plant in Shanghai, marking a significant moment in the real-world deployment of advanced robotics.
Scammers never seem to be running out of new ways to try and get their hands on your money – and lately, they've been getting sophisticated.
Thirty people were injured and killed, though the exact number remains currently unknown, when a suicide bomber blew himself up in a Damascus church.
Unexpected password reset alerts signal potential hacking attempts or phishing scams. Learn how to respond and establish stronger security measures for your accounts.
A historic electric airplane flight landed at JFK with passengers, marking a milestone as Beta Technologies demonstrates the practicality and efficiency of electric air travel.
The Chaos ransomware group breached Optima Tax Relief in a double-extortion attack, stealing sensitive customer case files and corporate documents with personal information.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
The first human brain-computer interface by Paradromics was completed in 20 minutes, featuring microelectrodes to help paralyzed individuals control computers with thoughts.

The Bottom?

Every day I hear someone on CNBC proclaim that "this... Read More

Investment Lawyers and Trash Stocks

The trash business in its efforts to cook their books... Read More

Stock Chart Reading

As an investor you will want to check out any... Read More

Never Fall In Love!

Recently I watched my favorite football team lose a vital... Read More

Trading Tips No 5: Stock Trading Curve Drawdown and Commitment

All stock trading and investing methods must deal with the... Read More

Exchange Traded Funds Primer

Exchange Traded Funds (ETFs) are a group of passive index... Read More

Price Targets

Every day in any financial publication you will find the... Read More

Leverage - Margin Debt

What is leverage?Here is a definition of leverage from an... Read More

Valuation

Every day I hear from the "experts" on CNBC-TV and... Read More

Stocks: Understand What You Buy!

"There is nothing more frightful than ignorance in action!" Johann... Read More

Bull or Bear?

Cat or dog? Maybe Zebra. Shucks, I don't know, but... Read More

Direction

It is difficult to make money in a bull market,... Read More

When Should I Sell?

People are always asking me when should I sell my... Read More

Stock Trading Secrets?

How often have you come across an advertisement or e-mail... Read More

Dont Buy Worldcom! A Guide to Wise Bottom Fishing

Over the past few months, several investment professionals have brought... Read More

The Seven Mistakes All Novice Traders Make and How to Correct Them

We learnt the following the hard way! If any of... Read More

Advantages and Disadvantages of Mutual Funds

Outlined below are some of the advantages and disadvantages of... Read More

The Secret to More Winning Trades is as Simple as Avoiding This Common Mistake

If you're a normal human being, your need to feel... Read More

Losses, not Profits, will Stop You from Trading in the Market

Should the market turn against you, it is important that... Read More

Traders, Defend Against the Dreaded Death Spiral.

It has often been said that there is only two... Read More

Finding A Good Stock

One of the things people are always asking me is... Read More

Choosing An Investment Stock Broker

If you want one.And I don't recommend any broker with... Read More

More Window Dressing

Two weeks ago I wrote about what the Securities and... Read More

This Market Is Different

All of the talking heads have been telling us that... Read More

The Secret Method to Selecting a Winning Trading System

Every successful trader has a winning system. There are of... Read More

licensed cleaning services Park Ridge ..