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Tuesday, December 30, 2008

Get Discipline or DIE as a Trader

I LOVE this article by Mack of Cannon!

I wanted to send it to everyone in case you somehow missed it. The only thing I would add is something Garth Brooks told me years ago when I had a chance to interview him about his success.

Garth told me "It is your dream, don't let anybody steal it from you".

If your dream is to become a world class consistent trader - don't let anyone steal it from you!

Thanks again for reading my blog!

Doug West &
Your Friends @

by Mack B. Stevens, Senior Broker, Cannon

Trading futures is an alluring business that allows an individual a lifestyle filled with many freedoms not available to most working people. This business requires traders to posses a unique set of qualities. The most critical quality a trader needs to have is discipline.

Discipline trumps knowledge. It trumps experience. In fact, without discipline very few traders survive to have enough experience to draw upon as an asset in their trading. The need for discipline is amplified by the very structure of futures trading. The leverage available in futures trading amplifies every decision that a trader makes. Every decision, good or bad!

Everyday life requires us to constantly make decisions. Do I buy the chicken breasts at $4.95 a pound, or do I buy the hamburger at $3.95 a pound. These types of decisions are non-leveraged decisions, so the impact overall is minimal. We are not buying or selling 400,000 pounds of hamburger as we do when we trade 10 contracts of cattle, while "paying" (margins) only a fraction of its total value.

In trading futures, one needs a trading plan. Some of these plans can be purchased for thousands of dollars. Some can be learned after attending a trading school for a week or so. Some can be developed by the individual trader after months or years of research. However one comes to his or her trading plan it is useless without discipline. Traders who have their plan and then stop using parts of it during the trading day are doomed to having increasing losses, usually large ones as typically the most discarded part of a trading plan is one of the risk control components.....stop orders and/or position size. A trading plan that is implemented with the proper discipline 75, 85, or even 95% of the time is doomed. For whatever reason, traders seem to have a breakdown of discipline at the most critical and damaging times. This is damaging to their equity and their psychological balance. The greatest trading strategy ever developed will prove to be disastrous to your account if it is implemented with a lack of total discipline.

This factor is what makes or breaks traders. We all know the difficulty in maintaining discipline in our everyday lives. Be it a diet, or an exercise plan, or even keeping toxic people out of our lives, constant discipline is very difficult to achieve. This is the key reason most traders are not realizing profits in their trading. As stated earlier in this article, futures trading amplifies our decisions in a way not seen in the rest of our everyday lives. Discipline is the single most important component in a successful trading strategy. So, rather than spending another $5000 on a new "black box" trading ideas, spend some time, and money if necessary, to learn more about yourself as a person so that you can better develop the strength to maintain trading discipline 100% of the time. This is a challenge to say the least but the difference in your life and in your trading account will be staggering! Good luck with making the change. The efforts in achieving this high level of discipline will be efforts that are exciting and rewarding. Let 2009 make your trading all that it can be!


Tuesday, December 16, 2008

Dealing With Income or Job Loss

Why Multiple Income Streams Are More Important Than Ever

As we were all on our team call trading the mini Dow index and waiting on a set up, the subject came up of how many folks are now losing their jobs because of the weak economy. If ONLY they knew how to trade the index. Thinking of it brings back thoughts of my own lay off from AT&T back in 1992.

The latest economy reports show more and more folks ending up on the unemployed rolls. The real statistics are most often worse than what is reported.

My guess is that the situation will get Much worse before we see any improvement in the job numbers.

I have always been a big fan of multiple income streams (even before that became a catch-phrase), and I think they are more important now than ever.

When I was laid off my nearly 10 year job with AT&T back in 1992, I saw first hand how important multiple income streams were. At the time, I had a part time mail order biz (and had been tinkering with that since I was a kid). I looked at the lay off as a good opportunity to get more serious about my business. I also had been doing some investing (my best-ever stock play helped BIG back in those days), and had a little network marketing income.

Many of my AT&T coworkers had no other source of income, and I clearly remember a few grown men in tears when they walked us all out the door that morning!

I would MUCH rather have five sources of income that pay me $200 a week, than to have a J.O.B. that pays me a grand a week! If you still have a job, you need to take this info seriously - NOW! If you are one of the millions of folks that recently lost a job or your only income stream, you need to take steps NOW to correct that (you still have time - perhaps a severance package and/or unemployment insurance checks to get you by - but please don't wait till they run out to get going).

How do you start to create multiple income streams? Here are a few areas that are available to most people:

* Online Income
Many things fall into this category, affiliate plans, blogging income, Adsense dollars, online jobs, marketing your own products and/or services, eBay and other auctions, & more.

* Investment Income
OK, this one may be tougher than ever, and if you barely have money to live on, how do you start to invest! I am partial to index trading, and that does not require a lot of money to get started, but to be really good at it, you need other income streams too.

* Network Marketing Income
Don't turn up your nose at this one. I have companies sending me checks that I have not worked in years. While it is true that network marketers often talk about the top guy who is making $500,000 a month, but there are a TON of folks who make a few hundred a month. Not life changing in and of itself, but as part of your multiple income stream strategy, not bad either.

* Cash Back Debit & Credit Cards
You won't get rich with this alone either, but the old saying is really true "If you watch the pennies, the dollars will take care of themselves". Pay Pal offers cash back on a debit card (which in my opinion is better than a credit card - you won't have the temptation to carry over a balance, which would cause interest charges and defeat the purpose of cash back)

* Interest Savings on Loans & Credit Cards
OK, this is not technically income, but if you save money off what you are currently spending, it comes out the same in the end - more money in your pocket and budget.

* Food Bill Savings
This is like the Cash Back cards, not really income but can be very important - especially if you just lost your job or sole income (like many folks who used to live on their stock market income). Try clipping coupons or join a coupon club. Eat at home more and quickly find more money left in the budget at the end of the month.

* Turn Hobbies Into Income
Like to go to garage sales? Turn that hobby into eBay income. Like to work on small engines or have some other hobby that can be turned into an income source? Don't sell yourself short here. Maybe you love flea markets? What if you could get an extra $200 or more a week by setting up a booth one day a week? Not enough to live on for most folks, but not bad as part of your multiple income strategy. You might even consider creating a booklet, ebook, book, or other info product on your hobby. If you are good at it, you ARE and Expert (you don't have to be the best to be considered an expert - there are folks out there who will pay you for what you know).

We have had affiliates of our Index Trading course earn up to $100,000 in a year. We've had many more earn from $5,000 to $30,000 in a year. What if you had 5 affiliate plans you liked (loved would be better - you'd be more passionate about them), that averaged about $5,000 each per year. You might be able to live on that. Add some other sources like the ones mentioned above and you might live very well!

You should always be looking for ways to add additional income streams. Remember, the more you have the better! If one dries up, you are not devastated.

The time to set up multiple income streams is before you need them, but no matter what your situation is, there is no time like NOW to get started. Keep it tuned here for more ideas on additional income!

Get more tips on how to build your income with Mini-Dow Index Trading Made Simple

Friday, December 12, 2008

3 Tips We Learn From The Big 3 Auto Makers

The big 3 US auto makers needing bail out help from Uncle Sam can teach us all some very important lessons. It doesn't matter if we are a 1 man operation or a big company, there are reminders here for all of us.

1) Never Quit Improving Product Quality

I remember when anything made in Japan had a bad name. The cars they made were junk. The only reason they sold ANY, was that they were cheap. When you got in one of these vehicles it felt like you were climbing in a toy or a tin can.

What seemed to go unnoticed by the US auto makers was that Japan was constantly working on improving their products. The big 3 seemed bent on engineering cars that would quit right about the time the warranty ran out. So while the Japanese cars were on there way up, the US delivered some of their worst products in the mid 70's. Before they knew it, Japan had nearly caught up with them. Not much longer and the Japanese had passed them -which leads to our next tip:

2) Don't Underestimate Competition

For years GM and Ford spent the thrust of their advertising dollars blasting each other. In the mean time Japan focused on the wonderful features of their vehicles.

By the time Ford and GM stopped to look around, they were behind in sales of cars. It got worse when the Japanese started manufacturing bigger pick up trucks!

3) Marketing Only Works Long Term If You Have Quality Products

This tip overlaps a little with the first one, but now we want to tie quality in with marketing.

The biggest example I can think of when it comes to marketing inferior products has to be Microsoft. Before they had ever even thought of the visual interface provided by Windows (Any old DOS fans still out there?), Apple/Mac had nearly perfected it. However, Microsoft and Gates out-marketed Job and Apple. Now with the Vista fiasco (really is it much different than any other version of Windows we all bought - full of bugs until we all test it out for them) it looks like Mac may finally make a big run on them.

Probably a better example would be AOL. Remember those discs you used to get in the mail nearly everyday offering their dial-up service. Even for dial-up (YUK - but at the time we didn't know any better) they had about the worst service available! Yet, they were excellent marketers. So, they grabbed a majority share of the market. Sooner or later the quality caught up with them.

Some might argue that Microsoft and AOL still made a LOT of money, and that would be true. But, in the long run inferior products will always come back to haunt you, and that is what the big 3 auto-makers are feeling now. What if they never did let Japan get ahead of them in the first place. Sure, this economic slump would still hurt, but would they need to ask the government to bail them out?

When you lead the pack in your niche you can lose that fire inside of you. A certain arrogance can set in. You could easily get fat and lazy!

When billions of dollars are flowing in, it makes it easy to manage a company. The true test of an outfit is how they handle a downturn. That is when real management skill is needed.

So put these tips to work in your business. Never Stop Improving Your Quality. If there is nothing else you can do with the product, can you improve the service? Constantly monitor your competition, and stay ahead of them. Finally, keep on marketing your quality products and services. It will pay off for you for years to come!


Still looking for a way to earn money from home? Don't miss the post I'm getting ready to make on how you can Really cash in on current trends. Also - don't forget our Simple Index Trading Strategy & Training!

Wednesday, December 10, 2008

Does The Big 3 Auto Bailout Affect Your Money?

The big three auto makers are hoping that Washington and particularly the House and Senate Republicans will approve of their multi-billion dollar bail out (or bridge loan as they prefer to call it).

What many are wondering is how the auto maker's share of TARP funds (if they do indeed fund it with TARP) will affect them and their family finances.

Doug West, who has taught thousands how to increase their income online with affiliate plans, small business and, with Index Trading is available for interviews on the Auto Bailout subject and more.

West, who correctly predicted the outcome of Y2K, and other financial scares over the years has been right on the money about much of the financial crisis. He predicted oil's rise (before it was politically correct to do so), and it's decline (in time for readers & listeners to cash in on the down trend by recommending the ETF - DUG).

You may be alarmed to hear what West is predicting for the next several months (regardless of the outcome for U.S. auto makers).

To arrange an interview see West's media room page at:

West will share some excellent tips with your audience such as:

* How To Eliminate Interest From Consumer Debts

* How To Easily Accelerate Your Home Equity

* Pay Off Your Home Quickly & Save Thousands

* Why The Crisis Make's it Necessary For You to Be Debt Free

* A Simple Trade That Happens 1 to 5 Times a Week that can pay you up to 15% on Your Money in as Little as 1 Minute

He will also offer your readers/listeners a no-cost guide that will show them how to get out of debt and create tax-free wealth. While it may be too late for US auto makers, there is still time for individuals to act.

For more information visit:

Friday, December 5, 2008

BIG 3 Auto Makers Plead - Index Traders Smile

Help For Those With Lost Income

Just got off of our daily trading call with my fellow traders and students, and we had a Great time. It was easy to see the market moving down this morning, and the simple patterns we look for were there. Most of us took advantage with some simple profits.

Terrence stopped in, one of our non-US traders. Terrence lives down in the beautiful Caribbean, and enjoys trading the index. (Many of us here are jealous and want to move down and join him - we want to all meet on the beach with our laptops and make money while enjoying the awesome scenery!).

Soon we were watching the trend change and the market start going up. A few went along for that ride. After we hung up, I did see an even stronger confirmation of the up move and did a couple more little trades for the day!

Some of the amounts I heard on the call were $1200, $900, $800, and $400. These are amounts that folks made in under an hour of looking for trades (most of our actual trades only last for a few seconds).

Are you facing a loss of job and income? If so (or even if no), isn't it time you learn how to trade the index with us? What are you waiting for. Even President-Elect Obama is telling you that it will take some time for any real economic relief comes. NOW is the time to learn a skill that can help you make money - Regardless of what the economy is doing.

If you are a radio show host, and would like to talk about Index Trading, the recession, what got us here, market conditions, and anything else, please click on the Media link on the left. We can offer you a show that will not only enlighten your listeners, but will entertain them too!

Post again soon. Have a Great Weekend!