Breaking the Shackles of the 9 to 5 | by The Time & Money Group

I received a couple of emails about getting started in the trading game.  Here is some insight into my development and a couple of recommendations.   

My trading career has undergone two distinct phases.  Phase 1 where I made a lot of money, but didn’t get to keep it.  Phase 2 where I am making a lot of money and at least so far being allowed to keep it.  Unfortunately, everyone must pass through Phase 1.  It’s the rites of passage.  The key is to minimize your time in Phase 1.  So, how do you that?

Here are two books for you to read:  “Trading For a Living”- Dr. Alexander Elder and “Trade Your Way to Financial Freedom” - Dr. Van Tharp.   I discovered both after I lost a boat load of money in 2000.  What really stinks is that both were published prior to 2000.  Unfortunately, I was reading the wrong stuff.  Both books talk about three items that must be incorporated into your trading strategy before moving into Phase 2:

1. Psychology - Understanding how you respond to fear and greed. Two emotions traders deal with each day.
2. Risk Management- How to protect your capital.
3. Money Management - How much to allocate and when to add more money to a trade.  The secret to the market is not only being right, but to making a lot of money when you are right.  That comes down to money management.

Trust me - the sooner you master these areas the sooner you will be able to keep your profits.  I am sure that there are many other books to address these topics today.  I am a little out of that loop since my trading system is basically in place.  Nowadays, I concentrate more macro topics.  So, I am currently reading “Economics in One Lesson” by Henry Hazlitt.  I know it sounds boring, but you gotta know this stuff.  Another one is “Crash Proof” by Peter Schiff.

If you are interested in any of these books I have set-up an Amazon store on my website.  Click on the picture of the book on my RecBooks page.  This will take you to Amazon’s web site.  Amazon will throw me a bone for any purchases you make.  There is no additional cost to you.