Robert Prechter is the editor of “The Elliot Wave Theorist”. Over 25 years ago he wrote a ‎report detailing what he believed were the most critical factors one should have in order ‎to trade the futures markets successfully. The more things change, the more they stay the ‎same. The ideas that I teach my students are precisely the same ones that Prechter stresses ‎to his subscribers. Here is a quick overview of his critical elements for trading the ‎markets:‎

• A METHOD: He is referring to something that is ‎objectively defined. ‎
• DISCIPLINE TO FOLLOW THE METHOD: Having the ‎ability to identify opportunities is only one part of the ‎trading process. One must be able to execute one’s trades ‎flawlessly once you have determined a trading signal exists. ‎This takes discipline and if you have ever passed on signals ‎your system has generated you will understand why ‎discipline is so important.‎
• EXPERIENCE: Many people believe paper trading will ‎prepare you for actual trading but until one experiences the ‎emotional aspect it is impossible to properly prepare. The ‎only way to avoid the school of hard knocks is to find ‎yourself a mentor. ‎
• THE MENTAL FORTITUDE TO ACCEPT LOSSES ‎ARE PART OF THE GAME: There is no way around the ‎fact that it is impossible to avoid losses and an objective ‎money management system is critical to ones long term ‎survival.‎
• THE MENTAL FORTITUDE TO ACCEPT HUGE ‎GAINS: Having the ability to hold on to winning trades ‎takes special skills. Most trades HOPE their losing trades ‎will become winning trades. They FEAR that their winning ‎trades will become losing trades and that creates an urge to ‎take profits quickly. The only way to have huge gains is to ‎have the patience to sit and wait. The famous Jess ‎Livermore once said, “Profits are made by sitting, not ‎trading”. This is what Prechter meant by having the ability ‎to accept huge gains. You must sit and avoid the urge to ‎take profits quickly.‎

Ask yourself if you have the specific skills that Prechter is referring to above. My course ‎is designed to teach my students how to trend trade. Learning how to successfully trade ‎demands one learn these skills and I will help you when you are ready.‎

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts, commodity options or forex can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

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