MENT Training - Trading Theology
Resources for Advanced Trading

Trading Theology - there is a broad topic... What does it mean and how do we use it to advance our trading abilities.. Well, the actual translation is "Religion of Trading" - but I like to consider it "The Study of the Practices of Successful Traders". In other words, what works, why, when and how frequently.

Over the past century or so, many different techniques for trading have evolved. The traditional mechanisms are still in place and being used today (ask/bid, breakouts, fundamental evaluation, news and traditional forms of technical analysis). The new analysis models are often based on information that is still considered "old" - for example Japanese Candlesticks, Fibbonacci, Gann, Elliot Wave, and others. The interesting fact is that with all these new renditions of the older forms of market analysis - there are more "New facets" for current day traders to digest.

When you consider "why" these older forms of market analysis are still here - it is because in some way or another - they work. But this is only part of the equation. There is more to this than meets the eyes.

You see, a successful trader is normally someone with the ability to contain and manage every aspect of their business - trading. This is a business of calculated risks and projected gains. Accuracy is great - but not super important. Managing the risk and executing the trade is more important is most cases. If you have a system that you trust and is accurate, then you simply have to execute the trades within your trading parameters.

What are your trading parameters? This varies with each trader. Some traders have large capital - others small capital. Some traders are more aggressive, others more conservative. Some traders trade stocks long-term, others trade the EMINI on 1 minute charts.

OK, enough with the "round-about" discussion... What do I suggest as a basis for good trading theology??

Evaluate your level of participation in trading - how much do you want to be involved (every hour of every day, every few days, every week or so, of NEVER). This basically dictates what you will be able to accomplish in your trading activities. If you answered "every few days" or longer, then you should strongly consider End-of-day trading (possibly using weekly charts - which I like). If you answered "every hour" or "every day", then you are probably a candidate for intra-day trading - but I strongly suggest divesting into end-of-day as well.

There are particular benefits to end-of-day trading vs. intra-day trading. First off, end-of-day trading often requires less time and can quickly equate into 5~11+% in profits (every month). How, you say? Check out the CandleWatch Reports to see how.

I suggest daytraders divest their capital into two or three methods...

Now, you're probably asking "why diversify when I can make good money daytrading"? You might be able to make good money daytrading, but eventually, you'll run into a "loosing streak" that will hurt a bit - we all do. Diversification will help to "smooth out" your trading adventure.

You might find that after time, you alter these percentages allocated to your trading - that's fine. The important part of this whole thing is that you are comfortable with your trading and have the knowledge to continue progressing forward.

So, what is trading theology and how do we use it?? It is the continued growth and expansion of knowledge that all traders continue to experience. It is learning from our mistakes and our strengths. It is the ability to adapt and overcome the hardships that WILL happen. It is trading in a smart and effective manner - without taking un-necessary risks.

Trading Theology is the ability for all traders to explore and gain valuable insight from their own experiences.

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