This Is The Only Way To Survive In Today's Markets

Editor's Note:
Please join me in welcoming Steven Primo to TradingMarkets. Steve is a 20-year veteran of Wall Street. He currently heads a private investment partnership, where he is General Partner and head trader. Previously, Steve was a 9-year Specialist for Donaldson, Lufkin and Jenrette (DLJ), one of the premier firms on Wall Street.  I'm sure you'll enjoy reading his daily commentary.
Brice
 

Imagine you’re canoeing down a peaceful river on a beautiful summer’s day. The sun is out, the scenery is beautiful, and you’re just going with the flow. Life couldn’t be more perfect. Suddenly you begin to pick up speed, and as you quickly turn a bend you see it – only 30 yards away begins a stretch of rushing rapids that go on for miles! Along the banks of the turbulent river, as far as the eye can see, lie the shattered remains of row boats, rafts and canoes who’s navigators didn’t believe the river was as dangerous as it appeared.

What do you do? Have you encountered rapids in the past? Should you bite your lip and hope to survive or perhaps would it be wiser just to bail out and abandon ship? You better hurry up and decide, because you have about 10 seconds before reality hits you square in the face.

Trading is exactly like this. There is absolutely no difference between the two except that instead of a raging river, the rapids are now consumer and earnings reports. They’re terrorist attacks, limit moves and global concerns. They’re war threats and election surprises. Unexpected events are a way of life in the market place, whether you’re watching a 5-minute chart or a weekly chart, and they almost always appear without warning. Your only means of survival for such occurrence is to HAVE A PLAN!

The 14-week swing-trading course I will be teaching gives you a clear and concise plan that has been verified by years of research. I will be teaching you a new way of trading that is defined by easy-to-follow rules. In my next column, I will explain the number one advantage to trading with a plan. Good luck and good trading.

Steven Primo

stevep@tradingmarkets.com