CONTENTS
PREFACE: THE FATE OF THE “AVERAGE” INVESTOR
INTRODUCTION: THE FIVE STEPS TO CONSISTENT PROFITS
The Components of trading Well
Mindfulness Trading: An Example
Make Friends with Your Inner Interpreter
Achieve Balance in Your Trading/Investing
Overcome a Stuck State of Mind
Vitamins for Your Soul to Improve Your Trading
Discipline in Meeting Your Goals
How Do You Know When You’ve Done Enough Self-Work?
PART 2 DEVELOPING A WORKING BUSINESS PLAN
Have a Plan for Your Trading/Investing
Having a Mission Statement behind Your Trading Is Critical to Your Success as a Trader
What Are Your Goals and Objectives?
What Are Your Tactical Trading Strategies?
How Will You Achieve Your Objectives through Position Sizing Strategies?
What Are Your Daily Procedures?
Mentally Rehearse Your Disaster Plan
Systems Other Than Trading Systems
PART 3 DEVELOPING A TRADING SYSTEM
Designing a Trading System That Fits You
Setups Are Not as Important as You Think
The Source of the Stock Selection Myth
Exits Are the Keys to Making Money
Exiting a Trade beyond the Initial Stop
Start Thinking in Terms of Reward and Risk
One of Your Most Important Tasks: Keep Up with the R Multiples of Your Trades
Six Keys to a Great Trading System
The “It Didn’t Work” Mentality
What It Takes to Have Confidence
PART 4 UNDERSTANDING THE IMPORTANCE OF POSITION SIZING™ STRATEGIES
System Quality Numbers® and Position Sizing Strategies
Position Sizing Strategies Are More Important Than You Think
The Three Components of a Position Sizing Strategy
THE CPR Model for Position Sizing Strategies
Different Position Sizing Models
The Purpose of Position Sizing Strategies
One Way to Use Position Sizing Strategies to Meet Your Objectives: Simulation
The Problems of the R-Multiple Simulator
Getting around the Problems of Simulation
PART 5 REDUCING MISTAKES AND USING OTHER WAYS TO MAKE MORE CONSISTENT PROFITS
Mechanical Traders and Mistakes
No-Rules Discretionary Traders and Mistakes
Rule-Based Discretionary Traders and Mistakes
Make More Consistent Profits: Keep it Simple
Miscellaneous Ways to Make Money in a Trading Business
Avoid Making Predictions in the Market