Super Trader Tactics for TRIPLE-DIGIT RETURNS

3 Keys for Superperformance 1. Ma ke big returns whe n y ou'r e cor rect 2. Make consistent profits 3. Avoid big dra wd ow ns when y ou'r e wrong

Rule #1 Concentrate - don't diversify S  Keeps

things manageable

S  Keeps

you focused

• S Allow s

you to be patient - the luxury of integrity

Focus on the very best names

Position Sizing Guidelines •

1.25% - 2.50% risk of total eq uity

•

10% ma xim um stop per trade

•

Ave rage loss no mo re than 5-6% per trad e

•

Sho ot for op tim al 25% positio n sizing Nev er take a position larger than 50%

Rule #2 Turn over your portfolio S  Forget S Forget S  Forget

abo ut taxes ab ou t getting the high abo ut you r ego

Nail down decent profits when you have them

Rule #3 Time your trades • S    Time

  Use S 

is money

charts

S  Learn

how to iden tify a VCP set-up

Develop "sit-out power" - only trade proper set-ups and allow them to come to you

The Volatility Contraction Pattern (VCP)

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Rule #4 Manage the risk reward relationship S    Do

the math

S  Do n't

risk more than you expect to gain

S  M on ito r

you r gains regularly

• Rule of Thumb: Cut your losses at Vz your gains • Build in "failure"

Approach every trade "risk first" S  Know

wh ere y ou're getting out BEFORE you get in

^ W rite it down S  CUT

YOUR LOSS quickly - do n't vacillate

Fail ing t o adhere t o st op s is t he sin gl e mo st  dest ruct ive mi st ake mad e by all invest ors 

No big losses No forced trades

Rule #5 Trade directionally S  Only

buy in the direction of you r trade

S    Never

average down

S  Mu ltiple

timeframe alignment

Determine if the "train" is on schedule

Rule #6 Build on success S  Trading S    Let

is not an on /o ff business

small wins finance larger risk

S  Trade

largest whe n trading yo ur best and smallest whe n trading your worst

If you're not profitable at 25% or 50% invested...

Rule #7 Protect your breakeven point ASAP v' 2-3x risk above average gain ^ 

Ne ver let a good size gain turn into a loss

^   Backstop S    50-day

your profit

rule

Order of Priorities a. Cut your loss b. Protect your line c. Protect your profit

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Rule #8 Sell into strength ^ 

Get out be fore the stock can break

S  It's

be tte r to sell early than late

• S Selling

half is a w in/ w in solutio n

Rule #9 Conduct post-analysis regularly S    Results S  Look

don't lie

for com mon alities

  Improve • S 

your weaknesses

Know the truth about your trading

Rule #10 Avoid style drift

If you're not getting the returns you desire, don't blame; take respons ibility, take action, learn... repeat! •

M ost important, believe in y o u rs e lf- y o u can do much more than you can imagine

•

Rules are of no use unless you fo llo w them

1. Fail to have rules 2. Fail to follo w rules 3. Have rules and fo llo w the m