Seven Golden Rules For Profitable Trading

  1. Do Not Try To Outguess Trend Following Mathematical Models: Just what will tomorrowís markets bring? Regardless of current price, remember there will always be a good rational argument that can be made to either sell now or buy now. There will always be an emotional environment of doubt. No matter which asset sector, don't worry about what the market is going to do or the stories surrounding them. Worry about what you are going to do in response to those markets in the present. You canít undo the past and you canít predict the future. No one can consistently predict anything! By having faith that the markets as a whole incorporate all available knowledge, and using mathematical set points to determine the major trends, a Lussenheide Investment Warrior will always catch the bulk of the bull markets and will stay out of the bulk of the bear markets.

  2. Reduce Risk by always obeying sell signals: Anyone can make money in a bull market, but if you don't have an exit plan, you are in trouble when the bull is replaced by the bear and your day of reckoning arrives. Trend following systems mathematically calculate the sell signal before you ever even get in. Ultimately all that matters is one thing: price. Forecasts, fundamental factors, and technological breakthroughs are all interesting to look at, but you canít buy and sell fundamentals! Lussenheide Investment Warriors follow price movements using our timing models and donít question why those movements are happening.

  3. Trust the trend following trading systems to adapt to change: Inefficiencies exist in the variety of financial markets around the world and these lead to sustained trends. Mechanical trend following systems profit from these dynamic trends. The global markets are in various stages of expansion, retraction and equilibrium. By using trend following systems, Lussenheide Investment Warriors will not long be out of sync of major market moves and developments, including those that we would have never have imagined or anticipated otherwise.

  4. Manage your risk: Concentrate on managing your risk. In life, it is not how much you make that determines the winners, it is how much you don't lose. The systems as practiced here are defensive in nature. Avoid the major losses and the returns will take care of themselves.

  5. Understand the nature of trend following: You cannot expect to enter a market at the precise moment a bottom is hit, nor will you exit a market at the exact top. By capturing 80% of the middle of a Bull market, and minimizing the bear market, you will be ahead of nearly all market participants.

  6. Do not attempt to buy lows and sell highs: instead, buy market strength and sell market weakness. Those who attempt to bottom fish, or pick market highs, inevitably ride an emotional roller coaster that produces unsound judgement. The mathematical models I use in this report use trend analysis models which systematically set those levels mathematically. By doing so, much emotional wrangling and doubt are removed.

  7. Long Term market success is simple but not easy: Long term market success is simple...simply remove your ego and submit to the process of obeying the orders of the mathematical models. This is not easy for some as they allow external doubt and emotional mettling to question their commitment. Submitting to the system and always obeying the orders from the signals is what makes for a long term successful Investment Warrior!



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Important Disclaimer:

The financial markets are risky. Investing is risky. Past performance does not guarantee future performance. This document is prepared solely for informational purposes and is not a solicitation, or an offer to buy or sell any security. Opinions are based on historical research and data believed reliable, but there is no guarantee that future results will be profitable.

The Lussenheide Investment Warrior Report does not advocate trading futures or options. Any mention of commodity futures contracts or options contracts and/or prices in this publication is for illustrative purposes only. This is not an endorsement or recommendation of any commodity futures market nor in margin trading. This is not an endorsement or recommendation of any option market. The risk of loss when trading futures and options is substantial. You can lose more than your original investment.

Any information contained in the Lussenheide Investment Warrior Report and any trading signals from Bill Lussenheide may contain statements that are the opinion of the author. The information and opinions contained in the market letter and signals are believed to be correct, however the information is not warranteed or guaranteed in any way. The subscriber may use the information provided at his or her own risk. No representation is being made that the information will produce trading profits. In no event shall Bill Lussenheide or his family , be held liable for any special, incidental, or consequential damages, whatsoever (including: without limitation, trading losses or any other losses incurred) arising from the use or inability to use the information contained in his  publications, or from delays or failures in the electronic delivery of the publications.