INTRODUCTION

I recently came across an alarming statistic showing that 95% of people who attempt Day Trading lose money. That’s why Jason Bond Picks is built on a foundation of Swing Trading. Yes, there are some elite day traders in my stock chat, but the majority of my clients are swing traders. Day Trading isn’t for everyone. It requires the ability to think very fast while handling extreme levels of stress. I have nothing against day trading. In fact, it’s very popular at Jason Bond Picks. But if you’re a beginner, STAY AWAY from Day Trading!

Nevertheless, if you’ve dreamed of becoming a day trader, we’ve host the biggest stock chat on Wall Street, and it’s full of pros. Just make sure you invest in your education in advance. Do lots of practice trades, and gradually you’ll reach a point where you know you’re ready to start Day Trading with real money.

Remember, if there is a huge return, someone is on the other side of that return. This means that while one trader is celebrating a big gain, another trader is suffering a big loss. Trust me when I say, trading options before you’ve become an expert is like leaving a loaded gun lying around your house. Sooner or later, something tragic is going to happen. It’s not a matter of if, but when.

I firmly believe that trading options should require a university degree, but unfortunately, Wall Street isn’t set up that way. So be extra careful with this one. I warn against options trading in my welcome email, yet this is the #1 way I see beginners blow up their accounts and lose most, if not all their money.

There’s nothing wrong with trying to learn about the options market. There are many winners (and losers) in this high stakes game, but if you’re a beginner, don’t even think about it risking your hard-earned money in options. I promise. You’ll thank me later when you read the horror stories from guys and gals in chat who’ve messed up themselves up, and had to rebuild. Or you’ll hear from other people who know someone who “crashed and burned” in the options market.

So let me warn you one more time. Options trading is the #1 way I see traders blow up. And their emails almost always start like this… “Jason, I wish I listened to you.”

I do not trade stocks on leverage, period.

Yes, I have a margin account, but I almost never go over my cash balance. Trading stocks on borrowed money is asking for big trouble. Fortunately, I don’t get these emails often, but when I do, it’s hard to read these sad stories.

Holding through events is what I’d consider gambling, but unlike Vegas, there’s no free entertainment and booze. No matter how much you think you know about a company’s earnings, FDA ruling, etc… it’s still a 50/50. Let’s be honest, the only people who know for sure what’s going to happen with a company are the insiders. And since it’s illegal to trade on that kind of information, it’s simply impossible to get an advantage. Ethically, that is.

This is my #1 rule at Jason Bond Picks… CUT YOUR LOSSES QUICKLY.

To cut losses quickly, you must go into the trade with a game plan. Entering a day trade and turning it into a swing trade, because it went against you, can be an extremely risky move. Entering a day trade, turning it into a swing trade, and then turning it into a long term trade is even worse.

You might be laughing right now, but I see this happening all of the time. When I take a swing trade, defined by Investopedia as a 1 to 4 day hold, I’m looking to take my profit during that short period. Very rarely do I stretch it beyond 4 days unless there’s a really good reason for waiting. Failure to exercise discipline in this area will cause more problems and losses than you can imagine.

First of all, you’re trading without a plan – that’s both dangerous and undisciplined.

Second, while your money is tied up in a loser, you’re missing out on winners. Let me give you a real-life example. Last week I woke up to bad news about one of my stocks. Since I didn’t expect this news, and my stop loss was hit, it was time to move on.

Yes, it’s painful losing money on trades, but losing is part of the strategy I teach. This is because nobody can escape losing. Nobody can be right 100% of the time. So the best thing you can do, is have a plan on how to handle this reality. That’s what I do with my trades, and I can show you how to create a plan for your own trades. By the way, the losing stock I was telling you about, opened lower the day after I sold it. So had I not “cut my losses”, even more losses (and stress) would have kept piling up. And who in the world needs more of that?

“My first trade with JB, got out +7%, can’t complain. +$1,300 profit inside the day.”

– David H.

In the movie Kindergarten Cop, Arnold Schwarzenegger was establishing the classroom rules, when he yelled at the students, and said “YOU LACK DISCIPLINE”! By the way, my wife loves that movie. Why? Well because she teaches first grade. I think we can all agree that it’s normal for a child to lack discipline, but there’s no room undisciplined adults on Wall Street.

There is no 20 / 20 trading at Jason Bond Picks. Stocks go up and down daily. They are dynamic. If you enter a trade, and you don’t know what your exit is, then how on earth will you know when it’s time to get out? I have a video lesson that teaches clients the psychology behind paying themselves, and it’s quite popular. Make sure you watch it.

So how many times have you been up nicely on a trade, only to give back all of your profits and sometimes worse, take a loss? Well I know exactly how that feels. It’s downright sickening!

You’ll see me saying this over and over in my daily watch lists and alerts. GREEN is better than EVEN. EVEN is better than RED. This means that if you get GREEN on a trade, in most cases don’t let the money slip away, however small it may be. And if you get back to EVEN by not taking a profit, by all means, avoid taking a loss.

Hoping that a stock will come back is no solution either. All that matters is what you think the trade will do next. Like many of the DO NOTs listed in this report, I’ve learned my lessons the hard way, so you don’t have to.

Bottom line is this…

Establish a consistent method for how you plan to exit trades. For me, it’s a simple process. I look for trading ranges of 20%, and inside those ranges I try to capture 5 to 10%, knowing that I’ll never get a perfect entry or exit. And I never want to hear, “Darn Jason, I sold too soon” come out of a client’s mouth.

Look at it this way. If a stock you already sold continues to advance, you should be happy you’re picking the right trades.You’re NEVER going to catch the top consistently, but you can capture consistent 5 to 10% returns. And that’s something any trader can get used to.

I’m like a robot in this regard, I set my sell for half my position at 5% profit, and let the rest ride for 10% profit. Therefore, a winning trade for me is about 7% profit.

Do that consistently, and you’ll be shocked at how fast the profits add up. I nearly tripled the S&P 500 in 2013 by applying this approach, and the S&P 500 had a monster year. So remember, if you fail to have a profit plan within your trading strategy, you’re setting yourself up for failure. And why would anyone in their right mind want to do that?

So be disciplined. Know what you’re looking for on your swing trades and stick to it. Once you take this initiative, you’ll find you are in fact in control, and that’s the only way to stay alive on Wall Street.

As a subscriber, you’re going to get a behind-the-scenes look at how (and why) my proven trading process works, consistently. I’m also going to send you: