Download as pdf or txt
Download as pdf or txt
You are on page 1of 52

Rapid Fire Equity Builder!

Your Cash Flow Magnet Trading Plan

Copyright © 2001-2002 Stephen A. Pierce


Contact Stephen Pierce at spierce@rapidfireswingtrading.com

Reproduction or translation of any part of this work by any


means electronic or mechanical, including photocopying,
beyond that permitted by the Copyright Law, without the
permission of Stephen A. Pierce, is unlawful.

The sole authorized distributor of this manual is


Stephen A. Pierce, CTA of
http://www.rapidfireswingtrading.com

If anyone other than Stephen A. Pierce sold, gave or


otherwise provided you with this manual, they did so
illegally. Please report this to us immediately at
reportabuse@rapifireswingtrading.com.

We are looking to stop the illegal distribution of our


copyright material.

Past performance is not indicative of future results. There


is a substantial risk of loss in futures trading. Commodity
trading involves a high degree of leverage, which allows
for large returns, but also large losses. Due to the high
degree of risk you should carefully consider whether
commodity trading is appropriate for you.
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 2

==========================================================
TABLE OF CONTENTS
==========================================================

1. INTRODUCTION
2. YOUR BALANCED SIMPLIFIED PORTFOLIO
3. FOUR COMMODITY GROWTH RISK GROUPS
Slow Growth Commodities
Aggressive Growth Commodities
Ultra-Aggressive Growth Commodities
Hard Core Speculative Growth Commodities
4. COMMODITY SECTORS
CURRENCIES SECTOR
INTEREST RATES SECTOR
GRAINS SECTOR
INDEXES SECTOR
MEATS SECTOR
SOFTS SECTOR
METALS SECTOR
ENERGIES SECTOR
5. HOW MUCH SHOULD I INVEST?
6. ESTABLISH DIVERSIFICATION WITHIN YOUR GROWTH RISK
CATEGORY
Interdiversification
Intradiversification
7. REALLOCATING YOUR PORTFOLIO
8. CHART TRADERS PREFERRED EQUITY ALLOCATION STRATEGY
9. MARKET MENTOR
-1-> LEVEL ONE (Bronze Trader)
-2-> LEVEL TWO (Silver Trader)
-3-> LEVEL THREE (Gold Trader)
10. DAILY HABITS OF PROFITABLE AND TENACIOUS CHART TRADERS
11. A QUICK THOUGHT ON EXITING THE MARKETS
12. TACTICAL RULES OF ENGAGEMENT
13. THE CHART TRADERS 43
14. BECOMING AN IMMORTAL TRADER
15. EFFORT GET'S THINGS DONE
16. INCLINATIONS OF A WEALTHY MIND
17. POPULAR CONTRACT SYMBOLS
18. MONTH SYMBOLS
19. RESOURCES FOR BETTER TRADING RESULTS!

2
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 3

==========================================================
INTRODUCTION
==========================================================
We are so grateful to have you here with us as a Chart
Trader. In the days, weeks, and months to come we believe
you will have one of the most incredible experiences of
your entire lifetime. Being a Chart Trader is more than
about winning in the markets... it's about winning in life!
It's more than about insights into the markets... it is
about insights to self! It's more than about making money
from the markets it's about making love to the markets.

You will be introduced to one of the finest of all entities


to ever breathe... she is the Market. Willing to grant you
your every wish only if you will follow her proven and
often difficult to discover plan. She's alive, breathing
and fully aware of both you and I and what we desire of
her.

All of those things like moving averages, candlesticks,


chart formations, etc. are all but clothing to adorn the
finest of this fine lady we call the Market. Those things
are nothing more than clothes we wear, jewelry we wear and
the way we comb, brush and fix up our hair. Underneath all
of this is who we really are... beyond the flesh... we are
spirit.

It is even so with Her. Beyond the charts, beyond the pits,


beyond the reports, beyond all the traders, beyond the
contracts, beyond the noise... sitting in silence is the
spirit of this fine lady we call the Market. It's only once
one gets in touch with Her spirit do they then understand
the love letters sent to us by Her. These love letters are
the instructions of Her heart and will direct each and
every one of us to a consistent and profitable relationship
with the markets.

As a Chart Trader, you will move from trading the markets,


to communicating with Her. From wanting to flowing, from
desire to inspire, from emotion to emotionless, from
attachment to unattachment, from fear to faith, from greed
to satisfaction.

The road ahead for you is truly one less traveled. Perhaps
never known by you. Yet, with many of the less traveled
roads comes the reason why it's less traveled. The
inconvenience, the pain and the unknown.

3
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 4

It is because of this, that despite our success record,


despite how many Chart Traders are succeeding beyond their
wildest dreams... not everyone will make it. Not everyone
can be a Chart Trader or better put, the Chart Traders is
not for everyone. The 97% of traders who lose their equity
consistently to the top 3% will continue to do so... the
reason being is that the path from the 97% to the top 3% is
not only less traveled, it often times grinds right up
against everything you were told about trading, your
beliefs you hold about trading... what your brokers are
telling you, what you read in the mass media, what the last
guru said and so on.

One must think! With the mass production of books,


magazines, videos, cassettes, websites, seminars, advisory
services, and software that make millions of dollars a year
selling to the weary and hungry trader looking to take hold
of the carrot that has been forever hanging before them on
the stick... again, one must think... if that was the
way... if success was through that medium... why is it the
97% losers stay just that way. Could it be that the 3%
winners rarely, if ever, share what they know about success
in the markets? YES!

In a marketplace where having such a huge edge in being the


unknown minority means massive wealth... many choose not to
share the insights and the wisdom. Even those who dared to
share, certainly had to be scorned and scoffed at for such
seemingly unassociated insights, wisdom and task.

Think about the movie the Karate Kid. The young boy wants
to learn how to fight. Better yet, he wants to learn how to
defend himself. So, the teacher accepts the young boy as
his student and then sends him about doing what appeared to
be nothing more than house chores the old man had no time
to do for himself. The youngster didn't know at the time
that the seemingly unassociated tasks were directly
associated with his future as a fighter and a defender of
himself.

So it is with the Chart Traders. Many things covered will


seem unassociated.

Don't be fooled. We have no time for childish games, empty


words and foolish runnings. Every word means something.
Every sentence means something. Every task is important.

4
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 5

Even with the Market Mentor, the request to keep your daily
journal. How unfortunate for the trader who thinks this to
be a useless task of creating a paper trail. My friend, it
is that trader's equity that you will capture and enjoy as
your own.

We are an elite group of traders. By elite we don't mean


better than any other human. Think of the Navy Seals and
the Army Rangers. They are an elite group of soldiers. As
people they are equal to all. However, as soldiers... they
are considered a special group... with enhanced abilities
and have shown and proven themselves in the most dire
circumstances to be unusual in determination, the ability
to endure pain, to have focus, to persevere, to stretch
themselves, to move from their comfort zones, to learn,
unlearn, and relearn.

This my friend is the Chart Traders. An elite group of


traders. As people we are equal to all, however as
traders... we are a special group. We experience
extraordinary trading results and endure what most are
willing to walk away from. We are one with the markets and
she is one with us. We live daily in Her bosom, in Her
chamber of love. We walk about her storehouse of treasures
as if they were our own. That is because she makes them our
own; from the love and intimacy we share.

As a Chart Trader, you will learn to die to self and live


unselfishly, and love unconditionally. Life will no longer
be about you. It will be about him, her, this, that, them,
those, these, it and anything and everything that presents
an opportunity for you to justly show you are no longer
entrapped in this worlds ways of selfishness, self-
righteousness, self-centeredness, and being self-serving.

You will not only begin to see your equity increase, you
will see your level of unconditional love for the markets,
for your family, for your friends and for life itself begin
to increase. As your unconditional love for the markets
increases so does your equity. By unconditional love for
the markets, we mean you celebrate each trade for the
opportunity it presents. Not the outcomes and end results.
Win, lose or draw... celebrate Her and she will reward you
massively. Disrespect her and she will scorn you and have
your equity wiped away like a straw house in the path of a
tornado.

5
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 6

As a Chart Trader, it's our goal for you to reach heights


that you hadn't even imagined yet. Accomplishing the goals
that have laid in your heart and mind for years. We are
here to see to it that you succeed. Against all odds...
SUCCEED!

Success comes from discovering the undiscovered in both


yourself and in the markets. Once you understand that
INTIMACY with the markets is more important than anything
else. You will find yourself showered with blessings of
prosperity from trading.

You will have losing trades while you are here, you will
feel some pain, you will have some doubts, you will get
uncomfortable... and guess what? That's all a part of
shedding that old skin... the old ways... those losing
ways.

It gets more uncomfortable before it gets comfortable. Make


no mistake about it... we have fun... a whole lot of fun
and we are blessed to bank thousands of dollars each week
in net winning profits from the markets. However it doesn't
come without a price.

A price that you yourself will have to pay. A cross that


you yourself will have to carry. As a team member and
player with the Chart Traders, the weight can often times
seem lighter than it actually is. We are a family. A happy
one at that.

We welcome you to our family and will delight in you


calling us YOUR family. It's time for you to relax now. Oh,
please don't rush this process. It's okay to be excited
about the possibilities and to rejoice at the winnings you
see happening here everyday. Just don't rush it.
Regardless of your past. Let it go.

If you feel you are already a good trader, please don't


come in here cocky thinking you know it all, as you will
surely find that you don't. If you feel you have been a
losing trader--let it all go. Don't let the past prevent
you from pulling the trigger on new trades. As you surely
will find no success in that.

6
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 7

It was once said that..."yesterday is a cancelled check,


tomorrow's a promissory note... TODAY IS CASH ON HAND!"

Today, here and now... this is all we have. There's no need


to cry or celebrate over yesterdays gains or losses.
There's no need to hope or fear for tomorrows gains and
losses. We are to respectfully show an attitude of
gratitude for today’s opportunities and with focused
concentration, liberated by the unconditional love that
flows in our veins, feel the beat of the markets and
pressed heart to heart with Her, let Her lead us in the
dancing of dollars that flow from Her belly.

We have a long life of ahead of us that we plan to live in


plenty with a sound mind, great health and above all -
God's grace.

We again welcome you to the Chart Traders, an experience


that will be one of the most adventurous times of your
life. You will learn not just about trading, how to trade
and what to trade. We go beyond the buy and sell aspects of
trading. You will earn about Chi-Trading, which is focused
concentration in this art form. Not straining, but a
relaxed, focused concentration that has you in the zone
where winning seems automatic.

You will discover the need for intimacy and communications


with the markets to achieve your desired financial goals.
You will be introduced to Her in many subtle and some
direct ways... she IS alive you know. Very much alive and
FULLY aware of you and what you desire of her.

Let us now begin with some of the basics to ensure that you
are able to stay around long enough to meet and greet Her
and to build the kind of relationship with Her that brings
a life showered with your greatest desires and your
storehouse filled with treasures.

In an effort to see ALL of our Chart Traders experience


success, we have put together this quick guide for you.

This should help to eliminate any confusion over which


trades you should select to be in, and to properly
diversify a small account.

7
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 8

We also explain in here the portfolio building concept we


want you to adopt, and how to grow your equity on a
consistent basis.

It's a very important part of our investing together. ☺

So, let us begin...

God Bless YOU and YOURS,

Stephen A. Pierce, CTA

8
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 9

==========================================================
YOUR BALANCED SIMPLIFIED PORTFOLIO
==========================================================
The basic idea is this: we want you to run your portfolio
the way a professional private fund manager does. With the
exception of being a loser. We want you to win. ☺

A. Whether you're a Chart Trader starting with $5,000.00 or


less, or you're a L2 or L3 Trader with over $50,000.00
first thing to do is allocate your capital according to
your appetite for market and business risk and the overall
growth rate you are trying to achieve. By allocate, we mean
to decide what amount of your investment dollars you want
to be invested in certain commodities on a buy and sell
basis based on the level of risk incurred in those
commodities versus what level of risk you are willing to
take.

B. Establish your favored sectors and commodities within


those sectors and call this your "Select List"; A Sector
and Commodities list is provided at the end of this quick
guide for reference purposes in building your Portfolio.

C. You buy and sell commodities opportunistically from your


Select List - these become your portfolio positions.

So let's organize your portfolio like a Chart Traders


investment pro. We will assume you are a Level One Trader
with starting equity of $5,000.00.

First thing you need to do is define how much money you


want working in the market at one time. Let's place that at
50%. That means whatever your accumulated positions are in
the market, the margin should equal 50% of your available
equity and no more. This leaves room for the market to
breathe and move allowing for the draw downs that can
arise. Being able to withstand draw downs in volatile
markets is the second most important key. The first key is
being able to enter into the right direction of the
market's trend, be it short term or long term.

CLICK HERE for assistance with organizing your portfolio

9
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 10

==========================================================
FOUR COMMODITY GROWTH RISK GROUPS
==========================================================
Now let's take a look at the four risk groups of
commodities available to us Chart Traders:

-1-> Slow Growth Commodities:


These are the commodities that trade with the lowest
volatility most of the time and offer the steadiest long
term equity growth through buy and sell combinations while
remaining in the markets. We look to double the initial
margin required in these commodities on each trade.

The commodities include:


Eurodollars
T-Bills
Oats
Corn
Bean Oil
Soy Meal
Rough Rice
Cocoa
Sugar

As with all commodity markets these can experience extreme


times of volatility, which make for faster equity growth.
However, for the most part they trend slowly for longer
extended periods of time.

-2-> Aggressive Growth Commodities:


These commodities offer great short term and long term
equity growth potential. These are very fundamentally
sensitive commodities and swing from extremes of very quiet
trades to limit moves. During the moments of the highest
sensitivity and volatility limit moves in both directions
can been seen in one trading session. With the great
volatility within these commodities, they offer fast equity
growth rates, at a much greater risk. We are looking to
triple the initial margin required in these commodities.

The commodities include:


Soybeans
Wheat
Feeder Cattle
Live Cattle
Lean Hogs
Cotton

10
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 11

Lumber
CRB Index
Copper
Platinum
Palladium
Silver
Gold

-3-> Ultra-Aggressive Growth Commodities:


These commodities move at a 200%-1,000% faster rate than
the Slow Growth and Aggressive Growth Commodities, with
high volumes, no limit moves, 24 hour international trading
and great sensitivity to international news and rumors.
These commodities not only offer incredible equity growth
opportunities, they also are commensurately more volatile,
which means extreme risk of loss and a need for the equity
to allow for draw downs. We look to double the initial
margin in very short periods of time and ultimately look to
more than quadruple the initial margin over the longer term
of trends we enter.

These commodities include:


Swiss Franc
Japanese Yen
British Pound
Canadian Dollar
Australian Dollar
Eurocurrency
Mexican Peso
US Dollar
Nikkei Stock Index
Crude Oil
Heating Oil
Unleaded Gas
Natural Gas
T-Bonds
Muni Bonds
2-Yr Notes
5-Yr Notes
10-Yr Notes

11
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 12

-4-> Hard Core Speculative Growth Commodities:


These are the commodities that when entered can either
build your equity at the fastest rate or will make it crash
and burn. You should be willing to experience 50-70%
equity fluctuations from both an intraday and daily equity
basis. These commodities can bring about the daily and
weekly trading homes runs to juice up your equity growth.
These should not make up your core portfolio and should
only really be entered from a Level Three equity stance,
and with that on a mini contract basis where available.
While most of these are index futures, others are in this
group not based on margin but based on their history of
volatility. When trading these or any commodities for that
matter, you should be sure the equity you risk, if totally
wiped out, would not change your lifestyle one bit.

These commodities include:


Coffee
Orange Juice
NYSE Composite
S&P Index
Value Line
Nasdaq 100
Russell 2000
DJIA

12
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 13

==========================================================
COMMODITY SECTORS
==========================================================
Following are the Commodity Sectors and individual
Commodities with their Point Value and Initial Margin
Requirements. Be mindful that you are responsible to know
the current margin requirements for each contract as they
can change without notice.

CURRENCIES SECTOR

Swiss Franc
1 Pt.=$12.50
2,160

Mid-Am Swiss Franc


1 Pt.=$6.25
1,080

Deutschemark
1 Pt.=$12.50
1,620

Mid-Am Deutschemark
1 Pt.=$6.25
810

Japanese Yen
1 Pt.=$12.50
4,212

Mid-Am Japanese Yen


1 Pt.=$6.25
2,106

Emini Japanese Yen


1 Pt.=$6.25
2,106

British Pound
1 Pt.=$6.25
1,823

Mid-Am British Pound


1 Pt.=$2.50
900

13
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 14

Canadian Dollar*
1 Pt.=$10.00
608

Mid-Am Canadian Dollar


1 Pt.=$5.00
351

Australian Dollar
1 Pt.=$10.00
1,316
Euro Currency
1 Pt.=$12.50
4,050

Emini Euro Currency


$6.25
1,515

Mexican Peso
1 Pt.=$5.00
5,000

US Dollar Index
1 Pt.=$10.00
1,330

INTEREST RATES SECTOR

Eurodollar
1 Pt.=$25.00
675

Treasury Bills
1 Pt.=$25.00
236

Mid-Am T-Bill
1 Pt. =$12.50
149

Treasury Bonds
1/32 = $31.25
2,025

Mid-Am Treasury Bonds


1 Pt.=$500.00

14
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 15

1/32 = $15.62
1,013

10 Yr T. Notes
1/32 = $31.25
1,350

Mid-Am Ten Year


1/32 = $15.62
675

GRAINS SECTOR

Corn
1/4 Cent = $12.50
675

Oats
1/4 Cent = $12.50
270

Soybeans
1/4 Cent = $12.50
1,215

Mid-Am Soybeans
1/4 Cent = $2.50
243

Soy Meal
10 Cents = $10.00
810

Soybean Oil
1 Pt. = $6.00
608

Wheat
1/4 Cent = $12.50
743

Kansas City Wheat


1/4 Cent = $12.50
500

15
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 16

Rough Rice
1/2 Cent = $10.00
675

INDEXES SECTOR

NYSE Composite
1 Pt.=$5.00
15,000

S&P 500
1 Pt.=$2.50
29,298

E-mini S&P
1 Pt.=$0.50
5,855

Value Line
1 Pt.=$5.00
13,125

Mini Value Line


1 Pt.=$1.00
3,500

CRB Index
1 Pt.=$5.00
1,625

Nikkei Stock Index


1 Pt.=$5.00
6,750
Goldman Index
1 Pt.=$2.50
2,250

Nasdaq 100
1 Pt.=$1.00
43,125

E-mini Nasdaq 100


1 Pt.=$0.20
10,781

16
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 17

Russell 2000
1 Pt.=$5.00
22,950

Dow Jones
1 Pt. = $10.00
8,485

MEATS SECTOR

Feeder Cattle
1 Pt. = $5.00
675

Live Cattle
1 Pt. = $4.00
473

Lean Hogs
1 Pt. = $4.00
1,080

Mid-Am Hogs
1 Pt. = $2.00
540

Pork Bellies
1 Pt. = $4.00
1,620

SOFTS SECTOR

Cocoa
1 Pt. = $10.00
840

Coffee
1 Pt. = $3.75
3,150

Cotton
1 Pt. = $5.00
998

17
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 18

Orange Juice
1 Pt. = $1.50
700

Sugar #11
1 Pt. = $11.20
700

Lumber
1 Pt. = $1.10
1,350

METALS SECTOR

Copper
1 Pt. = $2.50
1,350

Gold
10 Cents. = $10.00
1,350

Platinum
1 Doll. = $50.00
2,160

Palladium
5 Cents. = $5.00
20,250

Silver/5000 OZ
1/2 Ct. = $25.00
1,350

ENERGIES SECTOR

Crude Oil
1 Cent = $10.00
3,375

Unleaded Gas
1 Pt. = $4.20
3,375

Heating Oil
1 Pt. = $4.20
3,375

18
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 19

Natural Gas
1 Pt. = $10.00
4,725

All margins and contract specifications are subject to


change without notice. Please contact your broker for
current information.

19
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 20

==========================================================
HOW MUCH SHOULD I INVEST?
==========================================================
How much of your available liquid cash should you allocate
for trading? Well, that depends on your appetite for market
volatility, how much money you can lose without changing
your lifestyle, and how much time you are going to spend on
your portfolio (slow growth least time, speculative growth
most time).

The biggest mistake we see investors making is getting too


heavily allocated in risk categories that are not in sync
with what they are trying to achieve with the funds
allocated. That means if you have $5,000.00 to risk you
should NOT be 100% margined and trading speculative growth
commodities. Also, if you have 80% of your capital in
speculative growth commodities and are 70 years old and not
willing to risk losing it all, your portfolio is screwed
up.

Ditto for the 30-year-old who is 80% in slow growth


commodities when he/she is trying to grow money at a faster
rate.

So, after deciding how much equity you can start with,
let's say $5,000.00, and allocate 50% for initial margin,
which will be $2,500.00. Now, make up your mind how much of
your commodities portfolio you want in each risk category:

1. Slow Growth Commodities


2. Aggressive Growth Commodities
3. Ultra-Aggressive Growth Commodities
4. Hard Core Speculative Growth Commodities

We know at this point you are not able to take trades from
the Speculative Growth Commodities. Also, if you want to be
able to diversify properly, you are not able to take more
than one large contract trade from the Aggressive Growth
Commodities.

CLICK HERE for assistance with organizing your portfolio

20
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 21

==========================================================
ESTABLISH DIVERSIFICATION WITHIN YOUR
GROWTH RISK CATEGORY
==========================================================
This portfolio management idea is simple but powerful.
Since under-diversification can slaughter your equity
growth potential, the idea here is to diversify your
holdings within your growth risk categories as mentioned
above. There are two forms of diversification.

--> "Interdiversification" - This means you are diversified


across more than one Sector. Let's say for example you are
in Cocoa, which is from the Softs Sector, and you are in
Soybeans, which is from the Grains Sector. This is an
example of "Interdiversifcation" and represents that BEST
form of diversification, especially for smaller equity
accounts.

--> "Intradiversification" - This means you are diversified


within one Sector. For example let's say you are in the
Japanese Yen and the Swiss Franc. Both of these are from
the Currency Sector. This is a form of
"Intradiversification".

Lastly, when it comes to diversifying, not only do you want


to diversify from across the different Sectors, you
ESPECIALLY want to make sure you are diversified across the
Growth Risk Commodity Groups as mentioned above. By
combining this type of portfolio diversification, you allow
your equity the greatest opportunity for growth.

Here's an example with the 50% of $5,000.00 allocated. That


means available equity to margin is $2,500.00. Now, let's
see what a nice balanced portfolio would look like as it is
diversified across three different Sectors and Growth Risk
Commodity Groups:

Portfolio Example:
Long Corn ($657 initial margin)
Short Feeder Cattle ($675 initial margin)
Long Midam Canadian Dollar ($351 initial margin)

In the above Portfolio the account is only margined at


$1,683.00 of the available $2,500.00 from the $5,000.00
starting equity. This portfolio really looks good for nice
equity gains because it's diversified across three Sectors
and Growth Commodity Risk Groups.

21
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 22

It has a Corn from the Slow Growth/Grains Sector, a Feeder


Cattle from the Aggressive Growth/Meats Sector and to
benefit from the Ultra-Aggressive Growth Group/Currencies
Sector it has a Canadian Dollar.

However, to stay with the allotted $2,500.00 and cut the


exposed risk in half it holds a Midam Canadian Dollar
instead of the large contract.

Since entries are based on signals from your Chart Traders


Trend Monitor. We assume the signals are good and strong,
thus this portfolio now has the makings of some nice
consistent gains and with enough equity in reserve to allow
for any draw downs that may occur prior to becoming
profitable, and to take whatever loss if one occurs, and
still be able to enter another market.

CLICK HERE for to learn more about the ChartTRADERS.

22
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 23

==========================================================
REALLOCATING YOUR PORTFOLIO
==========================================================
When one of your commodities takes off and becomes 25% or
more of your entire account value, it's time to trim some
profits off the top and add them to your out-of-balance
investment categories.

This is a good thing. This is how you get richer and richer
without getting a riskier and riskier portfolio.

So, when we begin scaling out of profitable positions it


means that we have made some nice gains on those and while
wanting to stay established to make even more gains, we do
want to scale back because sudden crashes or turns in the
market can deplete accumulated equity.

Using trailing stops doesn't always work because if the


stop is blown through you still lose that equity build up
to slippage. The only way to ensure you bank this
accumulated equity ... well, is to bank the accumulated
equity.

In the case of holding only one contract. You may want to


exit and wait for new opportunities on your Trend Monitor.
By doing so you will be consistently realizing actual
profits from the markets, building your equity and setting
yourself up for the next level of trading that will allow
for you to hold multiple positions.

The key to getting wealthy from trading, once you know HOW
to trade, WHY to trade, WHAT to trade and WHEN to trade ...
becoming wealthy becomes only a thing of having more than
one contract. As well, by consistently reallocating your
portfolio and staying within your trading plan parameters,
you have the greatest equity growth and cash flow
opportunities.

What we mean by "it's time to trim some profits off the top
and add them to your out-of-balance investment categories"
is this. Once you exit the positions as mentioned above and
the equity gains have been added to your account. Have a
check sent to you for that amount. Give 10% to your church
or favorite charity and place the remaining in your high
interest savings account or in your stock trading account
for long term stock holdings.

23
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 24

By doing this you are paying yourself, building your wealth


and not keeping at risk your equity gains as long as you
continue to stick with the proper trading plan as mentioned
in here.

Many questions are also asked about the $1,000.00 weekly


profit target as mentioned in the Market Mentor. Well, for
the Chart Traders that have been here for a while, we are
way ahead of those gains on a weekly basis. The $1,000.00
mark is a rule of thumb.

If you are new at trading and position management is hard


for you, or you have great fears of losing your gains, then
you can close out all positions once you reach the
$1,000.00 net profit mark during the week - be it a Monday
or a Friday.

However, while past performance is not necessarily


indicative of future results, history has shown and proven
that here with the Chart Traders, gains of $5,000.00 a week
are highly possible when you stick with the Trend Monitor,
be patient and not over trade.

For traders looking to maximize each trading opportunity,


you can hold your positions until we give our final exit on
an intraday basis or via your Trend Monitor.

Under these circumstances the market can come back to a


zero gain trade, a loss, or massive gains. More often than
not the trades, after oscillating a bit, turn into massive
gains. However it does come with risk and you must once
again decide what are you willing to risk for the gains you
desire.

24
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 25

==========================================================
CHART TRADERS PREFERRED EQUITY
ALLOCATION STRATEGY
==========================================================
Here's our preferred allocation:

Use only 50% of total equity as available trade equity then


allocate as follows:

LEVEL 1:
50% - Slow Growth Commodities
40% - Aggressive Growth Commodities
10% - Ultra-Aggressive Growth Commodities

LEVEL 2:
50% - Slow Growth Commodities
25% - Aggressive Growth Commodities
25% - Ultra-Aggressive Growth Commodities

LEVEL 3:
20% - Slow Growth Commodities
35% - Aggressive Growth Commodities
35% - Ultra-Aggressive Growth Commodities
10% - Hard-Core Speculative Growth Comm.

If you are trading for short-term capital gains. There are


two important points that should be in your trading plan.

RULE #1: Since you are investing short term, do not plan to
hold positions for longer than 1 month with 2 months tops.

RULE #2: Use both swing targets for faster profits exits
and use stringent protective stops to protect your
immediate equity.

Rule #2 above will get you stopped out more often than not.
However this keeps you in a rapid-fire position where you
can quickly and continually use your equity to seize fast
opportunities.

If you are trading for the LONG TERM capital gains. Which
is the best thing for larger gains to smoke out volatility.

What we mean by "smoke out volatility" is simple.

25
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 26

On a short time frame like an intraday chart or daily


chart. The immediate market picture is always blowing smoke
of a different color.

It's when you look at the longer-term picture that you see
where todays smoke fits in.

By holding for the longer-term gains. You are able to


withstand the storms, smoke of the volatility and capture
much larger profits.

You do have to have a stomach that can handle watching


large fluctuations in your equity. Even many times seeing
very profitable positions be exited at scratch or for small
give backs.

However, by sticking to a longer term trading strategy you


will most certainly make more money in the long run.

By sticking with strict rules of holding and not always


exiting at the first sign of fire. You will be developing
the needed discipline that will allow you to hold without
emotion.

It's this holding that will allow you to capture the insane
profits.

Wealth is created over time, not overnight.

If you develop a habit of entering and exiting based on


fear and/or greed you are using an unstable emotional basis
for trading which has historically been proven to be the
worst trading system of all.

Emotional trading may have you to capture an occasional


profit. Like the saying, "even a blind chicken will grab an
ear of corn once in a while"

However your emotional trading is setting you up for a huge


fall.

You get excited when you win… even a little bit. You almost
blow your eyes out of the socket if you win more than a
little bit.

You get sad, confused and frustrated when you lose.

26
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 27

Your first two biggest mistakes are thinking in terms of


WINNING and LOSING.

The mass media has you thinking THAT'S what this game is
all about.

NOT SO!

This game has absolutely NOTHING to do with winning and


losing.

The more you try to win... the more you will continue to
lose. Also, the more you try to avoid losing. The MORE you
will lose.

The path to "losing" is broad, wide and the path of least


resistance.

The path to "winning" is kind of like the path to Heaven.


It's narrow, and the path least traveled.

The fact is. There is NO losing and NO winning.

It's all understanding or not.

The more money you give back to the markets. The more proof
you have that you don't understand.

The more money you gain from the markets. The more proof
you have that you do understand.

Understand what?

Good question. Easy answer!

Yourself! Life! Breath! Connecting! Love!

The game of trading futures and commodities is so far


different than the picture you normally get from the mass
media. That it's very easy to see why over 97% of traders
lose their equity to the less than 3% minority winners.

Trading is like a relationship. It requires every part of


your entity. That being spirit, soul and body, if you want
to succeed at it.

27
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 28

Most people come to the markets because of the allure of


money. The possibilities of the fast cash, quick buck, mega
wealth and so on.

Most people lose to, don't they?

Just like in marriages. Many marry for the wrong reasons.


MONEY, sex or what have you. Yet, when it comes down to it.
There was no solid foundation. Every wrong reason crumbled
under the pressure and divorce is at an all time high in
the US.

The same goes for trading commodities.

The pressure reveals all of your wrong reasons for trading.


The market will ALWAYS purge itself.

It will shine the light in your dark areas. You are not
able to run or hide. You are sure to suffer losses of a
great magnitude... as long as your ATTITUDE is one of greed
and fear.

As men, do we really like it when women only want money? As


women, do you really like when men only want sex?

Of course not. So, what makes you think the market likes it
when all you want is money?

The first thing you must believe is that the market is a


real, live breathing person. We address the market as
“She”. She is fully aware of you and I.

She's no fool. She knows everything. She can help you. She
can also hurt you.

Try to rob Her and you will be quickly burned. Seek to


love, adore and honor Her and you will be quickly rewarded.

This is a lesson very few understand. Our most successful


traders understand. These successful Chart Traders have
made tens of thousands of dollars in very short periods of
time starting with very little money and continue to make
thousands of dollars every month today.

These traders understand this. They have captured the true


essence of the market.

28
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 29

She's not a piece of meat. She's not your Aladdin’s lamp


for you to rub and make a wish.

Approaching the markets wrong is like making a made rush to


the guillotine.

You are setting up your own execution.

It is an absolute MUST that you understand. Becoming a


successful trader. An Immortal Trader as we call them,
begins inside of you.

You need to free yourself of the garbage and toxins that


continue to weigh you down and keep you enslaved to money.

The more you feel you got to have it. The more it will
elude you.

While wanting and desiring wealth and money, are both


healthy and expected of us as people. It's the order of
priority that we are talking about.

Money has NEVER made any one happy, at least not long term.

Coming into a lot of money is like eating candy. You get a


quick sugar rush and then there's the sudden breakdown off
the high.

If you are not happy and don't have your priorities


straight before making a ton of money. Don't expect things
to change "IF" you ever did make a ton of money, from
trading for example.

The reason we say "IF" is because money tends to NOT flow


towards the ignorant, selfish, self-serving people.

A ton of money has never prevented some one from committing


suicide. While the lack of it has.

Fame and fortune didn't spare the life of John Belushi,


Elvis Prestly and any name you can pick off the long list
of the rich and famous who lives ended at their own hands.

Greed has caused more deaths than contentment. Fear has


taken more lives than faith.

29
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 30

DO NOT let fear and greed be the rudder of your ship. There
are better, proven and sound ways to reach the pinnacles of
your dreams

If you want... you have to give. The laws of reaping and


sowing have been proven throughout the history of time.

Just like the low of gravity is real... whether you believe


or not. So is the law of reaping and sowing.

One is a natural law. While the other is a spiritual law


with physical and natural manifestations.

Don't let your ignorance abort you dream.

Jumping off a tall building without a parachute is going to


kill you whether you know about the law of gravity or not.
Your ignorance in this case has cost you your life.

So it is with reaping and sowing. Don't let your ignorance


to this law cost you your dreams, your visions and your
goals.

Everything you say is a seed being sowed. So, watch what


you say!

Everything you do is a seed being sowed. So, make sure you


do good things.

Everything you give is a seed being sowed. So, make sure


you GIVE THE BEST!

Therefore, the #1 Chart Traders Preferred Equity Allocation


Strategy is to GIVE 100% OF THE BEST YOU HAVE IN EVERYTHING
YOU DO AT ALL TIMES! ...WITH UNCONDITIONAL LOVE!

30
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 31

==========================================================
MARKET MENTOR
==========================================================
The Market Mentor well help you to get the most of the
Chart Trades while progressing through the ranks of traders
and maximizing your trading potential.

Specifically, it's to show you how to optimize your profits


and maximize your trading potential as a Chart Trader!

I will cover here the specific Trade Levels" and exactly


"who" should being doing "what" so that your risk is
limited and your potential for profits is unlimited. The
second section will cover the "Daily Habits of Profitable
and Tenacious Chart Traders" This section is very, very
important.

So, let's begin...

Each trader in the Chart Trader service falls in one of


three categories:

1. Level One (Bronze Trader) Starting equity is $5,000.00


2. Level Two (Silver Trader) Starting Equity is
$50,000.00
3. Level Three (Gold Trader) Starting Equity is
$100,000.00

• There are two other levels that traders are on.


The fourth level is that of "Platinum Trader".
When your available trading equity is greater the
$500,000.00.
• *The fifth level is that of the "Master Trader"
level, which is when you have over $1,000,000.00
available for trading.

The design of the Chart Trader Service is to deliberately


and methodically help you progress through the ranks of
traders and achieve your financial goals while building the
necessary character to help sustain you, not just in the
markets... but in life in general.

So, let's look at levels One, Two and Three. Please read
the details of your Trading Level so you fully understand
what you should and should not being doing.

31
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 32

==========================================================
-1-> LEVEL ONE (Bronze Trader)
==========================================================
Starting Equity:
$5,000.00

Goal:
To reach Level Two (Silver Trader) Status in one year,
while drawing 10% of net monthly profits and placed into a
high interest bearing savings account.

Net Weekly Profit Target:


$1,000.00

Net Avg. Daily Profit Target:


$200.00

# Of Contracts Traded:
One

Trading Markets Allowed:


Swiss Franc, Euro, British Pound, Canadian Dollar,
Australian Dollar, US Dollar, Euro Dollar, Mid-Am T-Bonds,
Corn, Oats, Soybeans, Soy Meal, Soybean Oil, Wheat, Rough
Rice, Feeder Cattle, Live Cattle, Lean Hogs, Cocoa, Cotton,
Sugar, Lumber, Copper, Gold, Platinum, Silver and Crude Oil

Day Trading Allowed:


NO!

Equity Preservation Rule:


Level One Stops as issued with the Chart Trades.

Trading Rules:
Level One Traders, when your Chart Trade is sent place the
order according to the chart (Stop, Limit, Day, GTC, etc).
Once your entry is filled IMMEDIATELY place your "Level
One" protective stop as issued. If the Market stops you
out, IMMEDIATELY and WITHOUT HESITATION place the order
again two ticks above/below the initial trade as issued,
UNLESS other wise notified via email. If the market moves
into profits and you have not been stopped out HOLD your
position with your "Level One" stop UNLESS otherwise
notified via email to exit with profits.

In the case of a market moving rapidly in your direction


for profits, Level One Traders at your discretion can exit
when your trade hits the $1,000.00 "Net" weekly profit

32
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 33

goal. When the Net Weekly Profit Goal is hit, whether is a


Monday or a Friday DO NOT take any further trades unless
SPECIFICALLY instructed to do so via the Chart Trades.

Otherwise you are finished trading for the week and will
wait until the following week to enter new trades.

LEVEL ONE TRADER’S DO NOT TAKE LEVEL TWO AND LEVEL THREE
TRADES!
==========================================================
-2-> LEVEL TWO (Silver Trader)
==========================================================
Starting Equity:
$50,000.00

Goal:
To reach Level Three (Gold Trader) Status in one year,
while drawing 10% of net monthly profits and placed into a
high interest bearing savings account.

Net Weekly Profit Target:


$2,500.00

Net Avg. Daily Profit Target:


$500.00

# Of Contracts Traded:
Two

Trading Markets Allowed:


Level One Markets as well as the Japanese Yen, Mexican
Peso, T-Bonds, E-Mini, Value Line, Mini Value Line, Nikkei
Stock Index, EuroYen, S&P 500, Nasdaq 100, Dow Jones, Pork
Bellies, Coffee, Unleaded Gas, Heating Oil, Natural Gas and
CRB Index

Day Trading Allowed:


Yes!

Equity Preservation Rule:


Level Two Stops as issued with the Chart Trades.

Trading Rules:
The same rules that apply to Level One Traders apply to
Level Two Traders. Except Level Two Traders will use the
Level Two Protective Stops. LEVEL TWO TRADERS DO NOT TAKE
LEVEL THREE TRADES!

33
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 34

==========================================================
-3-> LEVEL THREE (Gold Trader)
==========================================================
Starting Equity:
$100,000.00

Goal:
To reach Platinum Trader Status of $500,000.00 in two
years, while drawing 10% of net monthly profits and placed
into a high interest bearing savings account.

Net Weekly Profit Target:


$5,000.00

Net Avg. Daily Profit Target:


$1,000.00

# Of Contracts Traded:
Four

Trading Markets Allowed:


Level One and Level Two Markets as well as Goldman Sach
Index, NYSE Composite, Russell 2000, Palladium, the
Brazilian Real and Russian Ruble.

Day Trading Allowed:


Yes!

Equity Preservation Rule:


Level Three Stops as issued with the Chart Trades.

Trading Rules:
The same rules that apply to both Level One and Two Traders
apply to Level Three Traders. Except Level Three Traders
will use the Level Three Protective Stops.

CLICK HERE for personal assistance with the Market Mentor

34
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 35

==========================================================
DAILY HABITS OF PROFITABLE AND TENACIOUS
CHART TRADERS
==========================================================
As we progress forward in our journey. It's very important
that you keep a daily record or journal if you will.

I know some of you have done similar things to this.


However, this is a little different. This is a REQUIREMENT
for success. I cannot explain it's true significance as it
relates to the universal laws of success.

Perhaps the depth and essence of it goes well beyond normal


comprehension. However, our Chart Traders have been
transformed in a very major and profitable way when they
began doing this on a daily basis.

Not only did they become more profitable. They became more
centered and at peace with trading, the results of trading
(win-lose-draw) and with life.

So, this is an all-important step and I will randomly be


emailing you as a Chart Trader requesting you fax or email
me a copy of a specific day. Not a current day as it's too
easy to quickly write one. I will ask for a copy from a few
days back.

To be successful, one has to have responsibility and


accountability.

This is an effort to cultivate, nurture and mature BOTH of


these in you as a trader.

Following is the format for what you should do. It's very
simple

In the morning, prior to getting your day started. Sit at


your desk; lay across your bed or what have you. Pull out
your journal and begin....

--> AM:
How great do I feel this morning?
How can I make today more productive than yesterday?
***Tell two people close to you that you love them more
today then you did yesterday.

35
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 36

--> PM:
What did I do today that was right?
What did I do that was totally awesome?
What's most important in my trading?
What has to happen in order for me to feel like I traded
well?

Then: Before you go to bed, and this is an ABSOLUTE MUST!


Write down THREE THINGS that you are most thankful for
today. Be specific!

36
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 37

==========================================================
A QUICK THOUGHT ON EXITING THE MARKETS
==========================================================
If there's one thing that's basic to trading commodities is
the fact that whenever you enter a market, you always have
to exit.

Where the world of traders divide, split hairs and the line
is drawn between the +90% losers and the less than 10%
winners… is WHEN and HOW you exit the markets.

Write this on your wall...

---------
"WINNING TRADERS DO NOT EXIT WITH THE TREND,
THEY EXIT AGAINST IT!"
---------

What do we mean?

We'll explain!

A stop being hit is programmed as -negative- in most


traders’ minds that they can't even see the profit that
comes when the right kind of stop is hit.

Traders are so programmed to take profits on a down tick


(when short) and take a loss on an up tick (when short)
when truth of the matter is, if YOU take profits on a
downtick, you are in essence picking a bottom saying the
market won't go down further or you are displaying your
fears or greed... when you take profits on an up tick you
are allowing the market to decide when the downside is
exhausted.

Therefore you avoid bottom picking and allow for the market
to decline as long, as far and as much as it likes.

Your million dollar traders take profits on up ticks when


short and on down ticks when long. Scared and confused
traders tend to do the opposite and when they see they got
out on a down tick (when short) and the market continues to
decline, they chase the darn thing only to end up getting
out on an up tick for a loss.

That's what no trading plan, ignorance and having no sound


system of trading will do to you. ☺

37
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 38

==========================================================
TACTICAL RULES OF ENGAGEMENT
==========================================================
"Verily, thou art not paid for thy methods, but for thy
results, by which meanest thou shalt extract profits from
the market before the markets extracts equity from you...
by any means available."
-Stephen Pierce

Miyamoto Musashi (1584-1645) is considered by many to be


the greatest swordsman of Japanese history. He penned the
excellent book on strategy, The Book of Five Rings (Go Rin
No Sho). These principles are universal and still apply
today.

Do not think dishonestly


The Way is in training
Become acquainted with every art
Know the Ways of all professions
Distinguish between gain and loss in worldly matters
Develop intuitive judgment and understanding for
everything
Perceive those things that cannot be seen
Pay attention even to trifles
Do nothing, which is of no use

Many considerations go into the training for, planning, and


taking of a trade for the tactical Chart Traders. Perhaps
the most important of these considerations is range. The
ranges at which a market is currently moving (daily or
intraday) sets up the active risk to reward ratio for that
trade.

For the Chart Trader to engage our market targets we first


scan the markets with our scope (Trend Monitor) looking for
those targets within the tightest trading range first, then
move out from there.

The ranges at which a Chart Trader will engage his/her


targets will be determined by the WRITTEN Trading Plan that
accounts for many things including available equity.

Other factors considered include skill level, conditions of


the market and the market target, the target's current
characteristics, trade tactical considerations, and the
Chart Traders Trading Policy.

38
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 39

Our control over each of these variables ranges from


considerable (trading skills) to almost none (market target
characteristics). It is in everyone's best interest for the
tactical Chart Trader to maximize his/her control and
understanding over each of these variables and not limit
himself/herself by lack of training.

One factor that may cause us to limit our training and thus
limit our ability to engage market targets profitably is
dogma. I am always leery of flat statements that include
the words "never" or "always." (Perhaps I should have said
I'm usually leery of such statements, as we do use some
ourselves. In my opinion the Rule of the Golden Mean should
read, "Moderation in most things.")

Flexibility is an asset to a tactical Chart Trader, or


trader of any kind, while dogmatic statements can limit
thinking when it comes to solving problems in the trading
arena. Most trading dogma has a real basis in fact and the
Chart Trader should examine it closely before going against
it. By the same token the Chart Trader should look at
possible exceptions to the "rules" before he/she accepts
them at face value and limits his/her trading success and
profitability.

39
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 40

==========================================================
THE CHART TRADERS 43
==========================================================
If I can smell your scared money, so can the markets.

If profits are within range, so is a loss.

The markets themselves always have the right of way.

What can be seen can be traded, what can be traded can be


profitable.

Never be taken hostage by a market.

Friendly news -- isn't.

Bearish reports -- aren't.

Suppressive stops -- don't.

The most dangerous thing in the world is a Chart Trader


with a chart and a trade.

There is always a way.

The best way is never the easy way.

The easy way is always mined.

The important things are always simple; the simple things


are always hard.

No market ready Chart Trader has ever passed nerve


inspection.

No nerve ready Chart Trader has ever succeeded in chart


trading.

No new Chart Traders Trading Plan ever survives initial


contact.

There is no such thing as a perfect plan.

Chart Traders motto: "Reach out and grab some profits."

Chart Traders philosophy: "If you run from the markets,


you'll only die tired."

40
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 41

You are not Superman.

Professionals are predictable; it's the amateurs that are


dangerous.

The profit opportunities invariably appear on two


occasions:

a. When you're ready for them.

b. When you're not ready for them.

Never draw market fire; it irritates your equity, your


spouse and the Chart Traders Family Unit.

The buddy system is essential to your survival -- it gives


the market someone else to take money from.

Never share a winning trade position with anyone braver


than yourself.

Don't trade conspicuously; it draws market fire.

Anything you do can take your equity, including doing


nothing.

If you can't remember, then the market is moving against


you.

The market diversion you have been ignoring is the main


path for profits.

A sucking chest wound, short of breath and fast heartbeat


is Nature's way of telling you to slow down.

If your trade advances are going really well, you are


walking into an equity ambush.

If your fills are coming back really well, you are IN an


equity ambush.

If you choose a market tough enough to get in then you


won't be able to get out.

When you have secured your target profits, don't forget to


get out.

41
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 42

If it's stupid but it works, it isn't stupid.

If at first you don't succeed, take the next trade.

As soon as you are served a hot winning trade, it rains.

When in doubt, take all the trades.

Trading experience is something you never get until just


after you need it.

No matter which trade you decide to take, it's always


uphill.

Five-second fuses always burn in three seconds.

The bursting radius of a market reversal is always greater


than your current profits and faster than you can jump out
of the market.

The cost of a losing trade is in direct proportion to the


time you take and the distance you let the market run
before you decide to stop and reverse.

Never forget that your trading computer was made by the


lowest bidder.

42
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 43

==========================================================
BECOMING AN IMMORTAL TRADER
==========================================================
The greatness of our yielding to the markets is illustrated
by water: Nothing in the world is more yielding and softer
than water, yet it penetrates the hardest. Insubstantial,
it enters where no room is.

It's so fine that it is impossible to grasp a handful of


it; strike it, yet it does not suffer hurt; stab it and it
is not wounded.

If you try to remember you will lose.


Empty your mind; be formless, shapeless. Like water.
Now you put water into a cup, it becomes the cup.
You pour water into a bottle; it becomes the bottle.
You put water into a teapot; it becomes the teapot.
Now water can flow or creep or drip --or crash!
Be water, my friend.

Alive, a man is supple, soft,


In death, unbending, rigorous.
All creatures, grass and trees, alive
are plastic but are pliant too.
And death, are friable and dry
Unbending rigor is the mate of death.
Your market losses are someone else’s gains
And yielding softness, company of life.
Of massive profits, your equity gains.

Unbending soldiers get no victories,


The stiffest tree is readiest for the ax.
The strong and mighty belong to the bottom.
The soft and yielding rise above them all.

To yield is to be preserved whole.


To be bent is to become straight.
To be hollow is to be filled.
To be tattered is to be renewed.

To be in want is to posses.
To have plenty is to be confused.
Become water my friend.
Yielding to the markets.
Then let the markets take care of your profits.

43
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 44

One should be in harmony with the markets,


Not in rebellion against it.
Unity of mind, spirit, body and market.
Discard all thoughts of rewards,
All hopes of profits, praise, fears and losses.
Become fully aware of the market.
With developed market sensitivity,
The spirit of the markets will lead you
To your pots of gold.

44
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 45

==========================================================
EFFORT GET'S THINGS DONE
==========================================================
Effort gets things done. Patience sees them through. Both
are crucial to success. Without patience, the passing
setbacks and disappointments would soon overwhelm even the
hardiest effort. Without effort, patience would accomplish
very little.

You see, when you can balance effort and patience, it is a


powerful combination. You can make almost anything happen
with enough effort.

The most effective effort is continuing effort, which


patience makes possible.

Though they may at first seem to contradict each other,


effort and patience actually work great together. The most
spectacularly successful people in any field are those who
have the patience to continually apply their effort for as
long as it takes to succeed.

That goes for trading futures and commodities as well.


Although we put forth most of the effort for you. Combined
with your patience, you have an explosive formula for
success.

However, you must put for the consistent effort to write in


your journal daily.

To write out your trading plan for your portfolio and


follow it with patience on a consistent basis.

You must put for the consistent effort to visit the CT


Family Center at least once a day.

You must put forth the consistent effort to follow and


track the Trend

Monitor to develop your market sensitivity and awareness.

You must put for the consistent effort to follow the


"Fabulous 5 Formula" everyday

You must put forth the consistent effort to relax and feel
the flow of the market regardless of the direction.

45
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 46

You must put forth the effort to share boundless and


unconditional love everyday.

Know when to push and when to wait. Put forth a balance


consistent aggressive effort with a deep, underlying
patience and the results you achieve, as a Chart Trader
will be truly amazing.

46
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 47

==========================================================
INCLINATIONS OF A WEALTHY MIND
==========================================================
A wealthy mind?!?! What on earth is a wealthy mind??? Is it
the brain of a genius that has a huge price tag? Is it the
ideas of someone who has amassed great wealth?

Whatever your perception of a wealthy mind is it can be


expanded to include yourself. All we need do is
incorporate the thoughts of wealth into our daily
activities.

A wealthy mind doesn't just extend to cash and it’s


materialistic counterparts. Wealth pertains to abundance.
We've heard the expressions:

"A Wealth Of Opportunity" "Healthy, Wealthy & Wise"

They aren't referring just to $$$, ¥¥¥, or £££.


Unfortunately many of us confuse the term to mean just a
form of monetary exchange. Sure, this is a part of wealth
but it is just that, a part of it, not the entire package.

Wealth pertains primarily to opportunity. Earning money can


be a part of this.

When you see a wealthy person you more than likely look at
this person as an owner of many assets and money. Has this
person always been like this? We don't know but let's
assume that she hasn't. A few years earlier this person was
seen strolling down the same street but wasn't jumping out
of a Rolls Royce and didn't have anything visible that
warranted attention.

Subsequently she wasn't noticed. But now she commands


attention simply by her possessions and her manor.

Five years ago in central London this lady was in training.


Like anyone who wants anything we need to create the
situation that best will assist us in achieving what it is
we truly want. She wants to be an International Banker in
Europe's largest banking quarter, Moorgate, London.

So she starts her apprenticeship the day she solidifies her


thoughts and realizes what her lifelong dream is. This is
the transition period when she moves from searching for her
purpose to actually realizing her purpose.

47
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 48

Now, armed with desire, strength and passion she commences


her training to realize this goal.

Is she not already thinking wealthy? Has she not just made
one of the biggest decisions in her life by deciding her
career move and possessing the dogged determination to
realize this dream? You better believe she has.

Wealth commences in the mind before you have those things


that you want. You are spiritually wealthy as you have a
dream that means the world to you that you wish to follow
until its fulfillment. Sure, it may not be the steadiest
and most comfortable road to travel on but as you become
more experienced and remain focused and make minor
adjustments where required then you have already acquired
the thoughts and concepts of the wealthy.

Wealth also relates to enrichment. For arguments sake lets


pretend that her ambition was not financial or careers
move. It was sports related or to collect rare butterflies
or something similar. The fact that she has found her
driving force, her most important goal, and the main
purpose for her existence will bring out her best. It will
bring out capabilities and ideas that she may have only
ever skimmed over beforehand. Now, with purpose there's
method to her madness.

One of the first lessons is building self-confidence,


solidifying your goals and prioritizing that which is
important to you. This must be done with the view of
looking at the world as an abundant provider jam packed
with opportunity and choice. It is from this selection
where you can make wise and educated decisions on how to
pursue those things that are paramount to you.

Adversely, if you see restriction, impairment, closed doors


and limited possibilities then you are bypassing the most
important wealth principle.

For there to be wealth there must be an openness,


flexibility, a giving attitude, etc. that can pave the way
for you to tap into this wealth that encircles us all.

48
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 49

Otherwise your closed outlook will blinker you from taking


the vitally important initial step.

The world provides us with an incredible number of


possibilities to become wealthy. The opportunity factor
alone is enough to give us an overwhelming feeling of
excitement. Our interests are many. It is by the sheer
number of these opportunities that we can go to depths that
as recently as World War One were really just for the
privileged few who had such opportunities simply by virtue
of their bloodline.

It's amazing how quickly this has changed. The wealth of


opportunity that exists today for us to pursue our
interests (and make a pretty penny too) are phenomenal. We
don't need to be Kings or Queens anymore. Our future needs
the spark of desire fueled by passion and commitment.

As people, the element of choice in our life is colossal.


We choose our career, who we mix with, how much cash we
earn, our family life etc. Our lifestyle choices are
incredible. We have so many paths we can take. When we
incline to the wealthy we are incorporating our power of
choice. Use yours wisely.

49
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 50

==========================================================
POPULAR CONTRACT SYMBOLS
==========================================================
The following symbols are some of the most popular symbols
and are the format as used by CQG. These symbols may vary
from service to service and it will be a good idea to get a
symbol list from your quote service provider.
LC = Live Cattle
FC = Feeder Cattle
LH = Lean Hogs
PB = Pork Bellies
W = Wheat
C = Corn
S = Soybeans
SM = Soy Meal
BO = Bean Oil
CT = Cotton
CC = Cocoa
CF = Coffee
SU = Sugar
CL = Crude Oil
HO = Heating Oil
NG = Natural Gas
GC = Gold
SI = Silver
CP = Copper
PL = Platinum
OJ = Orange Juice
SP = SP 500
EP = E-Mini S&P
DJI = Dow Index
DF = Dow Futures
ND = Nasdaq 100
NC = NYSE Index
US = 30yr T-Bonds
MU = Muni Bonds
TY = 10yr Note
FV = 5yr Note
TU – 2yr Note
ED = Eurodollar
DX = Dollar Index
CR = CRB Index
SF = Swiss Franc
JY = Japanese Yen
BP = British Pound
CA = Canadian Dollar
DA = Australian Dollar
EU = Eurocurrency
EM = Libor
DM = DMark
RC = Rough Rice
HU = Unleaded Gas
LB = Lumber
PA = Palladium
MX = Mexican Peso

50
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 51

==========================================================
MONTH SYMBOLS
==========================================================
F = Jan
G = Feb
H = Mar
J = Apr
K = May
M = Jun
N = Jul
Q = Aug
U = Sep
V = Oct
X = Nov
Z = Dec

==========================================================
RESOURCES FOR BETTER TRADING RESULTS!
==========================================================

At Last! A Trading Breakthrough That REALLY Delivers!


Announcing a Powerful Charting Technique that Humiliates All the
Others! CLICK HERE for Details
FREE COURSE shows you how to profit whether the market is up or down
(http://www.impulsiveprofits.com/go-futures.html) - Delivers
consistent, profitable results as you maximize your profit potential.

Tips from the Most Successful Trader that Ever Lived!


(http://www.impulsiveprofits.com/go-beginners.html) - Once you have
read this book you will be able to trade any financial market: Shares,
S&P, Forex, Dow or Nasdaq. You name it you will be able to trade it and
make money.

Discover the Amazing Formula of Successful System Traders!


http://www.impulsiveprofits.com/go-trading2.html)
Learn these systems and setups that are 100% Automatic and work like a
charm in both up and down markets.

Rapid Fire Swing Trading


(http://www.rapidfireswingtrading.com/)
Give me 5 minutes and I'll give you sure-fire trading strategies to
boost your profits...let me prove it - CLICK HERE

51
Rapid Fire Equity Builder! - Your Cash Flow Magnet Trading Plan 52

Copyright © 2002 Stephen A. Pierce


Contact Stephen Pierce at spierce@rapidfireswingtrading.com

Reproduction or translation of any part of this work by any


means electronic or mechanical, including photocopying,
beyond that permitted by the Copyright Law, without the
permission of Stephen A. Pierce, is unlawful.

The sole authorized distributor of this manual is


Stephen A. Pierce, CTA of
http://www.rapidfireswingtrading.com

If anyone other than Stephen A. Pierce sold, gave or


otherwise provided you with this manual, they did so
illegally. Please report this to us immediately at
reportabuse@rapifireswingtrading.com.

We are looking to stop the illegal distribution of our


copyright material.

Past performance is not indicative of future results. There


is a substantial risk of loss in futures trading. Commodity
trading involves a high degree of leverage, which allows
for large returns, but also large losses. Due to the high
degree of risk you should carefully consider whether
commodity trading is appropriate for you.

52

You might also like