How not to lose Money Trading

Hi I am Jordan Schleider here again to talk to you a little bit about my specialty which is trading futures. I am the founder of NQ Trader a futures trading school and I have over 30 years of trading experience and I have over 5 years of successful teaching experience at NQ Trader.

To get started I want to say, and you can quote me Jordan Schleider as saying “the best way not to lose money trading is not to trade.”

Now with that said, I expect two reactions. One being, that you will close your browser window and go back to Google and start searching for more information. Maybe look for some sort of guarantee or promise that if you follow the directions of this DVD you will earn millions of dollars. Another is that you will start laughing and read on a little further into this article.

So if you are at this point you are probably part of the second group. This in itself says a lot about you and your experiences trading. You have probably tried a few different systems and a few different schools or maybe you have done quite a bit of research and have tried a few things without any luck. You still have an open mind and you are probably a step of two above the other group. I will get back to you in guys and girls in a second.

So for the sake of everyone I want to talk quickly first about the group that went on searching for the Holy Grail of trading. There are about ten thousand articles written on this subject. They all fall into two nice categories. The first one is those who promise millions if you buy their system. The second category is those who make fun of the first.

Everyone who has ever made consistent money trading will tell you the same thing. There is nothing magical about trading. It is just a little hard work, consistency, planning and focus. They will also go on to tell you that if there was some secret formula to making money trading it would never work.

Once somebody figured it out they would share it with someone else, who in turn would share it again and again and eventually you would have way more winners, making way more money trading then you would have losers. At this point the markets would essentially collapse for lack of losers. Remember, trading is not you against some big nameless corporation, with trillions of dollars. It is you, against someone else like you.

Those of you that found a little humor in what I said at the beginning, you are by no means out of the woods. Trading is a difficult undertaking and takes time to manage. I could go on for days about how to trade and not lose money and also about how to make money, but I do not have that much time right now so I want to focus on a few key points.

First, traders that make money make it slow. They take small consistent gains day after day week after week and month after month and so on. For every person you hear about that made ten million dollars trading yesterday there are one hundred ten people that lost ten thousand dollars each trading. The extra ten people cover the brokerage and exchange fees and commissions. This comes under the topic of money management.

Another great point that is so often overlooked in trading is consistency. This would be seen as trading a system. Take something a simple as driving a car. If you spend your life driving by the rules of the road and following the speed limits and looking both ways. You will probably get in fewer accidents, spend less on insurance, save on gas and save quite a bit of money over time.

If you speed, text and drive and run red lights you will probably find yourself with a lot more speeding tickets, accidents, repair bills, insurance deductibles and auto expenses over time. This is easily quantifiable through auto insurance reports and premium costs.

If this was a business you owned, say trucking companies, wouldn’t you be looking to hire the drivers who follow the rules without exception? The savings would show on the books year after year and essentially boost you income.

So if you take this and transfer it into the trading business, you should easily see how following a system will make you money versus trading without a system or following it from time to time will cause you to lose money.

These are some of the things I teach every day at NQ Trader. Remember my name is Jordan Schleider and you can come visit us anytime at http://nqtrader.us