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March Madness for Technical Traders: Valuable Coaching from the Market Veteran Who Lost 70% -- and Made a Comeback
Learn how legendary trader Dick Diamond improved his trading game for the long-run.

By Jill Noble
Tue, 05 Mar 2013 17:15:00 ET
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The "Player of the Year" award is common in the sports world. In the month of March the spotlight is on basketball: The best college players compete to be drafted by the NBA, while the best colleges team complete for a spot in the Final Four. 

Individual traders and investors don't find a lot of "team spirit," yet it's obvious that -- like successful athletes -- successful traders are highly competitive, disciplined, and skilled at what they do. Technical traders, in particular, hone their craft to execute trades effectively within a complex, high-pressure system.
 
And, unfortunately, most traders fail.
 
So how do you keep your 'hoop dreams' from falling flat? If you have time and dedication, one of the best ways to stay in the game is to find an experienced mentor. Here's where we can help:
 
Dick Diamond traded on the floor of the Amex between 1960 and 1965. And he started trading his personal account in 1965.
 
At first he could do no wrong -- or so it seemed, as Diamond rode the wave from 1965 through 1968. He had positive returns in all four of those years. Alas, he fell into an all-too common trap among traders: he believed his personal investing "genius" was behind his profits. The more basic truth was that he simply remained on one side of a favorably trending market.
 
But as 1969 unfolded, the trend was no longer his friend. That's the year he lost 70 percent of his portfolio.
 
How did he recover?
 
He established trading principles and vowed to stick by them. As Diamond applied them, he did indeed make a comeback -- which has lasted until this very day.
 
He has not had a losing year since the 70 percent loss. He even says a losing month is unacceptable (Are you ready to learn from the 47 year market veteran? Register now for his 4-day trading course in Miami, March 17-20>>).
 
Here are six of Diamond's trading principles:
 
  1. Trade only a small percentage of your overall capital at any one time (once you get over your "core position" you'll get emotional and bad things will happen).
  1. Be open to change. A good trader lets market conditions dictate short-term feelings. Market conditions can change many times during an active day.
  1. Never get aggressive after short-term success or failure in your trading life (and don't dwell on the past, good or bad. Focus on the NOW).
  1. Intraday trading winners come into a trade for a quick profit and if it does not work out, they sell. Losers hold on to hope. Diamond says this is a dirty word for traders. If you find yourself wishing or hoping -- get out!
  1. Don't buy because prices seem too low, or sell because prices seem too high. A trader should have the ability to buy higher than he bought on the last completed trade even though only a short period of time has lapsed. Conversely, a trader should be able to short at a lower level than the last completed short trade.
  1. Don't fault yourself for a losing trade -- you'll be right 70-80% of the time if you are trading properly. However, you must fault yourself if you break the trading rules.
Diamond's hard-won knowledge helped him make a comeback that is ongoing -- so much so that his longtime friend Robert Prechter (who set a new record for options trading in the U.S. Trading Championship in 1984) fully endorses Diamond's teachings.
 
March 17-20, Learn How to Trade for a Living in Miami, Florida with Dick Diamond

Dick Diamond will teach you his exclusive trading methodology and principles learned over 47 years of experience so you can stay in the game for a successful, long-term trading career.


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