The RDS Forex System: A Breakthrough Method To Profiting from Market Turning Points

CHAPTER 3

Finding the New Edge

Controlling your ego is a valuable asset for a seasoned trader. You don't bet bigger when you are losing, you bet bigger when you are winning. If you watched the movie Floored (a documentary about how pit-trading lost to the computer) you can learn something from one of the featured traders, Greg Reba. Greg said something in the movie that in all actuality is a hidden trading gem when you put aside any of your initial thoughts when listening to Greg; he didn't come across as the most credible source. He simply talked about betting bigger when you are trading well. Most people have it backward and trade conservatively to protect their lead when they are up and trade bigger when they are down to get it back. This logic doesn't make any sense (and cents for that matter) when you think about it. In sports when a player is playing badly, they get benched so they don't take the whole team down. This is hard to do when the emotions of loss are flaring in your head! You just have to learn when to floor it and when to put on the brakes. The feeling in your gut will always give you a foreshadowing sign and if you haven't felt it yet you will at some point, so be on the look out.

Now you don't have to face $31.25-per-tick exposure per contract to get started like Mike did when he began trading 30-year bonds. Trading Futures required no less than $50,000 in a Treasury bill and $50,000 in a trading account to start. $100,000 in and not knowing for sure if you ...