Master the art of
trading
Simon Brown
JustOneLap.com
SimonBrown.co.za
@SimonPB
18th September 2012
Trading is easy
Stages of a trader
•Unconscious Incompetence
•Conscious Incompetence
•Conscious Competence
•Unconscious Competence
Losing money
Being wrong
Desire
•To be right
•To confirm ones view
•To get positive feedback from the
market
External fear
Caused by something outside of you
which you are strongly motivated to
avoid.
Example: being wrong, losing money
Internal fear
Something inside of you that you link to
a negative emotion.
Example: being wrong, losing money
BUT
•Life rules and trading rules are different
•We are wired for life rules
•Have to wire ourselves for trading rules
What to measure
•Measure success by what we can
control
•Discipline
•Consistency
•Monitoring trade
•Exit (stop loss)
We can not control winning or losing
trades
How to measure
•Generate trade
•Determine exit strategy
•Determine trade size
•Enter on confirmation
•Monitor trade & stop loss
•Exit as planned
•Keep a journal
What to loose
•Losing trades are a fact of trading, a
cost of doing business
•Start up capital
•Be comfortable with the potential loss
before you enter
What to loose
•Stop loss determines Rand risk per
trade
•Be comfortable with this
•Worse case of 20 losers in a row?
How to trust
Discipline requires trust
•Eyeball the system on a chart (at least
20 trades)
•20 paper trades
•20 real trades with small amounts
•Than the real deal
Greed
Further reading
•Trading in the Zone
•Mark Douglas
•Mind Power
•John Kehoe
Re-cap
•You can’t trade with fear
•Know how to measure
•Accept potential losses
•Trust your system
Master the art of
trading
Simon Brown
JustOneLap.com
SimonBrown.co.za
@SimonPB
18th September 2012