They also know that this kind of harmony can only be achieved by paying close attention to every detail when it comes to design, construction, and testing. Perfection is never expected, but through a continual process of refinement, enormous improvements can be achieved over time.
Following this systematic approach can be a great way to learn how to trade stocks and options successfully.
Consistent success is not possible without a well-designed trading plan. This plan should include all the essential components such as time frames, the technical indicators which will be used, entry and exit criteria, as well as stop losses and portfolio allocation.
Here’s the problem; sometimes, these components may appear to be sound when considered in isolation. For example, you may see clear entry signals based on moving averages, but these signals are of little or no use, they can even be dangerous unless they’re carefully assembled to work together coherently and seamlessly.
Teaching people to trade by following a detailed and comprehensive plan is at the heart of Jeff William’s trading philosophy, and that’s what first attracted retired manufacturing manager, Ron Weismiller of Erie Pennsylvania to PennyPro.
As a manufacturing manager focused on building low-emission vehicles in the transportation industry, Ron Weismiller always believed in the importance of technical detail; and he takes a similar approach when it comes to stock trading. Tackling the markets with the same tenacity that he brought to his career, the now retired 66-year-old engineer is trading to provide his family with a comfortable income and, most importantly, to liberate his children from their student loan debt.
For many years, Ron specialized in constructing Tier 4 locomotives within the transportation industry. The correct application of technology to reduce emissions was one of his core responsibilities. Precision in design and construction was both a commercial and regulatory imperative.
It’s this attitude towards work which, after some initial disappointments, he plans to apply to his trading career.
“My trading has been spotty at best,” admits Ron, in acknowledging that he needs a more disciplined and thorough approach to learning if he is to reach his trading goals. He was not helped by his initial experiences with other training services which, he says, gave only a “10,000-foot overview of their strategy”.
By contrast, the attention to detail which Ron found at PennyPro struck an immediate chord. Now he’s gearing up to build a strong foundation in the fundamentals and intricacies of trading the stock markets.
“Jeff is certainly at the top of my list for his expertise,” he says, “and now that Davis has joined forces with him, it’s an interesting team approach. I also need to dive deeply into the training modules as I believe they will provide the backbone to my trading.”
“Jeff William’s approach with penny stocks and his constant reaching out to his potential clients. I love his small account challenge as he’s proved himself not once, but twice.”
For technically-minded people like Ron, trading can undoubtedly be a fascinating activity. Many traders devote a lifetime to mastering its intricacies. On the other hand, this highly-technical approach is not the only one which can work. No matter what your philosophy of trading may be, attention to detail, particularly when it comes to risk management, is a prerequisite for long-term success.
And it’s even more important when, like Ron, you’re trading a relatively small account. Although the fundamentals do not change, you have a much lower margin for error and are at higher risk that drawdowns will make your account untradeable without an injection of fresh cash.
That being said, although it’s still early-stage, Ron’s systematic approach is already beginning to pay off, bringing in its wake a much-needed boost in confidence.
“Did great today for the first time,” he was able to report recently, “posted wins of 4%, 6%, and 11%, on Jeff’s alerts. I need a good mentorship to give me that leap of faith.”
Admittedly, small gains like these may not sound like a big deal. While it’s true, there are far more spectacular wins to be had, regularly banking modest gains can be a great way to build confidence and motivation.
Furthermore, if you reinvest your profits by taking steadily bigger positions, the miracle of compounding will ensure that your trading account grows consistently over time.
It’s a strategy that works well with small trading accounts such as Ron’s, but it does require tenacity and self-discipline to persevere when faced with the ever-present temptation to chase what appear to be bigger, “higher-profit” trading opportunities.
Fortunately, tenacity and perseverance are qualities which Ron had to develop in dealing with the challenges of his manufacturing career. They are also attributes which he regards as extremely important.
“Did great today for the first time! Posted wins of 6%, 11%, and 4% on Jeff’s alerts. I need a good mentorship to give me that leap of faith. Actually, I need a good kick in the butt to drive it into the next gear.”
Engineers know that rarely, if ever, the prototype of a new design will achieve success. They accept the possibility that a number of modifications will be needed before a correctly functioning machine can go into production.
Likewise, successful traders are always looking to improve and refine their trading plans. They’re always testing new strategies. (Important: This kind of testing is not the same as departing from a plan during a trading session.) A professional trader will often paper trade a new strategy for weeks, even months before integrating it into a revised plan.
Focus, discipline, and tenacity enable smart traders to persevere with their plans in the face of the inevitable losses even the most successful traders must face from time to time.
The well-known story of the tortoise and the hare is a fable which is highly relevant to stock market trading.
The tortoise-like trader who proceeds cautiously with a clear trading plan and sound risk management, banking small wins and absorbing small losses over time without undue emotion, will usually come out ahead of the overconfident, risk-addicted hare who breaks down at the first sign of adversity.
“My confidence level is growing exponentially as I stick with these guys. Joining Traders Council tonight and looking forward to working closely with Davis. Many challenges now and ahead. I think I can tackle them with their guidance.”
This slow, steady approach aligns perfectly with Ron’s two main trading goals: to provide a secure income for his family and to set his elder children free from their college debts.
“There is no better feeling as a father than to lay good groundwork for your children,” he says.
By combining his natural propensity for painstaking work with the expert guidance provided by his PennyPro mentors Jeff and Davis, Ron is well on the way to providing his family with a solid base indeed.
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