http://www.premiertraderuniversity.com/ptucourse -- PTU Trading Course! As we come to the end of 2014, I was thinking of what the best trading tip was that I could leave off this year with. Sure, there are tips such as “watch your risk”, “understand psychology”, and the many other cookie cutter type of statements. Yes, cookie cutter however it still makes them important. The best trading tip I could give you is to take out some of your winnings so it’s not just a bright light on your screen. http://www.netpicks.com/take-cash-trading-tip/

2. As we come to the end of 2014, I was
thinking of what the best trading tip
was that I could leave off this year
with.

3. Sure, there are tips such as “watch your risk”,
“understand psychology”, and the many other
cookie cutter type of statements.
Yes, cookie cutter however they are
still very important tips.

4. Then there was a great lesson today in
the stock market ticker: NDRM
NDRM is a company called NeuroDerm
and news came out that recent
Parkinson treatment results were
pretty good.

5. Analysts upgrade the stock to a share
price of $17. Great news and the
upgrade cause a perfect storm that by
EOD, the stock price soared almost
195% and volume was incredibly high
at over 40M shares
(miles above the average for this stock).

6. What you don’t see on this next chart
is any reason to sell ( I couldn’t get
borrows on it anyhow ) but there are
those that did short after the stock
punched up “too far, too fast”.

8. Then they got squeezed.
And lost a ton of money.
Those that added to their shorts as in
losing positions (which you know
happened), lost more than a ton.

9. You can see where some no doubt
tried to short like staying short on the
early breakdown, fading a breakout,
and shorting after what MAY be seen
as a blow off with volume. Toss in
early trapped shorts and this day dealt
a tough lesson to many traders.

11. It’s the whole “trade the trend, trade
what you see, not what you think”
mantra. Instruments can go further
than you ever think they will.

12. Those are obvious tips and I agree they
can be hard to follow at times. So that
is not the best tip I could leave you.

13. Withdraw.
The best trading tip I could give you is to
take out some of your winnings so it’s not
just a bright light on your screen.

14. Wire money out of your trading account
and put it in your bank account.
Withdraw the wired amount out into cash.
It’s real money. Hold it in your hand.

15. The first time I took money out it was
$11000. Not a lot of money by some
standards but holding the actual cash
makes you realize the power of what
you are learning.

16. The power of what you are
doing as you sit in front of
your computer screen.

17. It’s that feeling of real money that will
have you obeying your stop because
that bright light loss is real money.

18. It’s the same feeling which will have
you taking your profits at your defined
targets in line with your trading plan.
You won’t be tempted to “squeeze a
little more” from the trade.

19. Think of the stock chart above. Many
that added to their losing position
could do so because they had the
funds available.

20. Taking regular trading profits gives you
a smaller trading account which forces
you to stay inside sane dollar
parameters.

21. From what I saw, traders lost 6 figures
as this stock pushed higher.

22. You can certainly give yourself a raise
by leaving enough extra in your
account that allows you to trade X
amount more shares/contracts and
that is probably a good idea for some.

23. It’s when you leave too much in your
account that will fund you when you
make trading errors….such as shorting
a market when the chart gives no
indication that is the right play.

24. Now of course you never want to rely
on your trading account balance to
keep you attached to the trade plan
and all the right trading habits. That is
not what this trading tip is for.

25. This tip is all about taking the money
from the digital world and having the
tactile experience of holding wads of
money in your hands. It’s easy in
today’s world to pull out your credit or
interact card and spend money.

26. Money takes on a whole different
meaning when you actually open your
wallet and pay with cash. I know for
my wife and I, we are a lot more tuned
into our spending habits since
preferring cash over plastic.

27. Once you do this, you will not look at
your P/L the same ever again.
You may become a better trader in
2015 because of this simple exercise.