As a professional trader I have had the opportunity to rub elbows with a lot of successful traders over the years. I always pick their brain and ask them questions like, “What are the Key’s to a successful trading system?”

Of course, I have received many different answers over the years and I have come to my own conclusions.

I have developed my list: “Nine Essential Keys Every Successful Trading System Must Have”. I have put that list together for you below. If you are trading a system right now and it is missing just one of these keys, then for the sake of your account, please stop. It is ultimately doomed to fail.

Alright so let’s dive right in…

Key #1 — Entires – Your system must show you exactly where to enter the market. Their should be no discretionary guesswork involved. Your trading plan needs to include wording like this: “If X occurs I will place a buy stop to enter the market at x pips above x price.” The X’s are the variable that your systems’ entry points should be determined by… and they should not be changeable.

Now, your trading may include 5 different and stand alone ways to enter the market, and that is fine, but they need to be exact and preferably they need to compliment one another. I personally have four uniqueand stand alone techniques.

Key #2 — Risk Stops – I have known traders who didn’t use stop losses and the end of every one of them has been failure. One such system I know of lost $10,000,000 of client funds (no joke!). The reason is because the traders did not prepare for a worse case scenario. The purpose of a stop loss is not to control risk, but to simply identify when you are wrong. If you are wrong you should get out of the market.

Most people hate to be wrong and they take it personally when they are. That is why a lot of traders won’t hold firm to their stop loss strategy; but, if you want to be a successful trader you need to admit when you are wrong. Cut your losses while they are small and live to trade another day.

Key #3 — Target Strategy – A target strategy is one wherby you know where you will potentially exit the market at the

time of initially making the trade. A target strategy will allow you to calculate your risk vs. reward ratio which I will discuss in another key.

Now, I only use one target strategy, but you may have multiple target strategies depending on the type of entry strategy that you used.

Key #4 — Add-On Strategy – An Add-On Strategy is one that you use to scale into a position. This simply means

that the market is going in your favor and your initial trading decision is being confirmed. That is the best time to add on and capitalize on the trend. This is how you can significantly increase your ROI within a trade. Almost all successful traders that I know use an add-on strategy.

Key #5 — Position Management — Position management is defined as the way you handle a position once you are in a trade. In other words, using trailing stops of some kind to secure profits and protect adverse price movements. I generally will use priceaction patterns as a way to determine trailing stops. With proper position management it becomes possible to maximize your profit and remove all risk from a trade.

Key #6 — Position Sizing – Position Sizing is defined as how much trading capital should be alloted to any one market position. This is extremely important as it can either make you big wins or big losses. There are really four elements that go into a proper position sizing technique. First, is determining how much to risk. Second, is what I call Psychological Heat. This is how much pressure is involved at different risk levels. Third, is how you determine when to cut losses and when to let winners ride. Fourth, is how to increase your bet and what position size to use to do so.

Key #7 — RPT and RRR – RPT is an acronym for Risk Per Trade. This is a position sizing technique that professional traders use. Instead of just using a technical stop or a percentage stop, you should combine both and come up with an RPT. RRR is an acronym for Risk Reward Ratio. RRR is a strategy for determining when to use more risk or less risk in a trade. This one strategy alone can significantly increase the profitability of any trading strategy. Essentially the higher the RRR the more higher your RPT can be.

Key #8 — Trading Psychology – All professional traders know that proper trading psychology make up a significant portion of a good trading system. In fact it is an essential part of the trading system because the system is in your brain. Your brain needs a lot of work to be able to handle the ups and downs of trading. I have never seen a real money equity curve that moved in a straight line. That means you have to be able to deal with the dips. Trading psychology will also help you stick to the system and execute it flawlessly.

Key #9 — Mentorship – Every good trader or professional investor has had a mentor. You may have heard the saying, “No man is an island”. Well this is true when it comes to trading as well. If you isolate yourself it may take years and thousands if not tens of thousands of dollars to learn how to trade. A mentor can help you overcome the pitfalls and help you develop the right trading system for you.

My Advent Forex Mentorship course is currently full. I can only support so many students at one time. I am at full capacity right now. But if you want you can get on my pre-registration list at www.adventforexcourse.com and I will notify you when more openings become avaialble.

To let you know up front the cost of my 12 month mentorship program is $1,999 or three payments of $799. I am looking for a certain level of student and you can read about that on my home page at www.adventforexcourse.com. Since I only take on 25 new students every month I only have time for individuals that are very serious about becoming professional traders, so be sure and read my entire home page before entering your name.

Here is the good news: I host a free webinar once a month that (by itself) is better than 95% of other $2,000 trading courses. If you haven’t been to one of my training webinars I’ll send you details soon.

Stay tuned for more to come.

Please call or email my office anytime.

To your trading success,

Cecil Robles
support@ethostraders.com
www.adventforexcourse.com
1 (866) 200-1102 11am-4pm M-F (Pacific Standard Time)