ETR Insider Report: My 10 Commandments of Trading

Sorry to burst your bubble, but the perfect system for investing probably doesn’t exist. Still, there are systems that work a good percentage of the time. One way to find a good one is to watch successful investors and follow their lead. Today, I’m going to give you a sneak peek at one of those good systems: my own.

It may surprise you to learn that I wasn’t always aware that I had a “system.” I discovered it when I was developing my new trading program for ETR. The program is designed to teach everyone – from beginners to experienced investors – how to trade. And before I could put it together, I had to analyze the procedure I use when making my own trading decisions.

One thing I realized is that I have developed several “rules” that have helped me make significant gains over the years. For instance, there are 10 trading principles that I use to guide my trading.

  1. Stick to your guns.
  2. Be diligent.
  3. Don’t be a one-way trader.
  4. Don’t have personal attachments to your trades.
  5. Don’t think it has to be complicated to work.
  6. Do your homework.
  7. Trade what you see.
  8. Breathe in, breathe out, move on.
  9. View each trade independently.
  10. Don’t follow the crowd.

If you are an experienced trader, I encourage you to either develop your own set of trading principles or adapt mine to fit your style. If you are new at trading, I encourage you to start with my list. Then, as you gain experience, add to or modify it.

[Ed. Note: Rick Pendergraft is a professional trader and market analyst. In Rick’s new investment service, he reveals how you can make hundreds – even thousands – of dollars just for playing a simple game of “guess the pattern.”]

Inspired by his high school economics teacher, Rick Pendergraft fell in love with the markets at an early age. He entered his first investing competition at 17, and opened his first brokerage account before he finished college. At the age of 23, on the third options trade he had ever placed, Rick turned $1,800 into $22,000 in less than a week, when the company he bought became the target of a takeover. He admits it was a stroke of luck, but it was a memorable education as to the leverage that options can provide. After a ten year career in banking, Rick decided to pursue trading full-time. To get his foot in the door, he started out in the sales department at Schaeffer's Investment Research. It was not long before his talent was recognized and he was invited to apprentice under Bernie Schaeffer, one of the top options traders in the world. Rick thrived in his new position and twice received the award for "Top Trader."Rick has developed a loyal following of readers who are grateful for his timely warnings and profitable advice. He is widely recognized as a market expert and has been frequently quoted by Reuters, BusinessWeek, Forbes, USA Today, the New York Times, and the Washington Post. Rick's primary focus is on identifying short and intermediate term rising and falling trends in the major market sectors. His analysis is based on technical factors along with indicators of market sentimentRick lives near Delray Beach, FL with his wife and three children.