Amateur traders die because they run around in the jungle and grab a bit of money from this camp, a handful of money from that camp. The amateur trader uses one indicator today, and a different tomorrow. His mind is not focused, it’s scattered. He keeps losing while making money for his broker and professional traders.

Other amateur traders spend money and time learning about every indicator and walk into the jungle with a heavy load of fancy gear on his back. If he survives the first battle, he discovers that the heavy load of gear only slows him down, making him a stationary target for snipers.

The experienced guerilla stock trader travels light so he can strike quickly and quietly.

An amateur trader shoots at everything that moves, including his own shadow. He alerts the enemy to his position and the snipers move into position to take him out.

A disciplined guerilla stock trader has scoped out his prey while lying quiet in the jungle. He knows exactly what weapons and tools he will need to steal a little booty from the enemy camp. Simplicity and discipline go hand in hand.

To be a successful trader, choose a small number of markets to scope out. Select a few tools and learn to master them. It is better to be an expert with five stocks, than a jack of all trades with 50 stocks. If you use about five indicators, you’ll do better than if you try and use 10 indicators.

This is called the “five bullets to a clip” strategy. An old army rifle used to take five bullets, and I analyze markets using no more than five indicators.

If five indicators do not help you, 10 will not do any better.

Once you pick five indicators, stay with those five. Amateur traders impose their own will on a stock “thinking” that a stock has to go higher, then choosing indicators that support their belief. Believe nothing. Think nothing. The market doesn’t care what you think or believe.

I hope you enjoyed this article. Leave any comments you might have below. Thank you and happy improved trading.

Lance Jepsen
President, GuerillaStockTrading.com
Your Trading Coach
(because everyone, even Tiger Woods, needs a coach)

Technorati Tags: amateur trader, booty, bullets, enemy camp, five bullets to a clip, guerilla, guerilla stock trader, jack of all trades, jungle, prey, professional traders, scope, stock trader

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