Today I want to explain in more detail what I mean by my 1,2,3-method when it comes to trading.

How come some people always seem to be able to put a cooler on their nerves and consistently make Money trading?

Is it because they have special abilities that you don’t have and never will have?

No. It’s because behind Successful trading there are rules that are strictly adhered to.

These rules don’t come out of the blue, but have often been learned the hard way by people in the business.

It may seem easy to stick to a number of rules, but I can tell you from my own experience that it is not.

This is why I’m writing this. So that you don’t have to make the same mistakes as I have through the years and start right away being what you really want – a successful trader.

I call my method the 1,2,3-method.

By adhering to my rules I completely remove the emotions that inevitably surround the business of trading and focus on identifying the right moments to enter and get out of a trade instead.

The method is modified from Quint Tatro’s trading method which he has shown to be very successful in his career.

In this post I will lay out the fundamentals of a successful trading strategy and show you how you can consistently make money in the market.

What do I need?

As minimum you need an internet connection, a trading Account and money on that account.

The trading account does not need to be advanced. The only thing required is an account that automatically buys and sells your stock at a given price level.

How much money is up to you, but I would advice against trading with less than $200,000.

If you have less than that you can still trade, but it’s difficult to use the economies of scale that present themselves when you have those $200,000 in your account.

You then need to use software that represent the different charts that you will use as a basis for your trading.

The best free software that I have found is called FreeStockCharts.com and they allow you to customize the charts in a way that best suits you.

They also have a paid version which obviously is better, but if you are just starting out you don’t need anything else.

So what is the method really?

In essence it’s about quantifying the risk.

Let’s say that I’m prepared to lose $500.

Then I look at the chart and identify the price level where I want to get in as well as the point where my trade is deemed to be a failure.

That is where I put my stop.

I then buy so many stocks that my final loss will be $500.

That way I know before hand how much money I will lose if things go bad.

That means that I have mentally prepared myself for a loss of $500.

If the stock goes the other way (which it should given the odds), I take a third off the table when prices have advanced 1 X the risk.

For example, if I get in at $10.00 and my stop is at $9.00, then 1 X is at $11.00.

The second third, I take off the table at $12.00 and the final third at $13.00.

That’s it. Enjoy your trading.

This post is a follow up on my guide on how to use technical analysis in trading.

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