Millions Are Made Each Day
In The Futures Markets
-
But 95% of Traders Lose.
.... I'll Show You What
Separates
The Winning 5%,
And
How You
Can Join Them.
People will tell you that unless you have that ‘special something’ you can’t make it as a successful trader.
But be reassured, TRADING CAN BE TAUGHT – it's not a divine gift, as others have claimed in the past - and that many still believe.
Neither is it all about ‘secrets’ or ‘special insider knowledge’ that only a few professionals know.
The reality is far simpler, so simple in fact that most traders refuse to accept it. This refusal by the majority is precisely what allows the minority to live the life they choose.
Letter from David Bromley,
Trader and Trading Research Analyst
Ten years ago, I started out as a newcomer myself. I had plenty of enthusiasm and I was hard working. I had come up with some ideas that I felt were good.
But in spite of all my best efforts I found that my money was gradually draining away. Surely I deserved some success for all my honest effort? I could hardly believe anyone else was making a better effort to do well.
I was puzzled - was I doing things the right way? Was there something important I didn’t know?
Shortly after this, I decided to stop trading, because I couldn’t see how things were ever going to improve. I made up my mind I wouldn’t start trading again until I worked out where I was going wrong.
I never did work it out. Looking back, I realize that I never could have done so for myself. But I found that somebody else had worked these things out. More than that – years previously - somebody had even proved that trading could be taught.
Can Trading Really Be Taught?
The arguments on this subject between legendary trader Richard Dennis and his partner Bill Eckhardt are part of the history of systems trading. No other event before or since has had such an impact on commodity trading than the resolution of this dispute.
Eckhardt insisted that trading was an art not a science. Successful traders were born, not made. You could no more create a top class trader than you could create an Arnold Palmer or an Ella Fitzgerald.
Dennis did not agree at all with his partner’s views. It could not be left like this – the argument would have to be settled. Dennis decided there was only one way to resolve the dispute – he would recruit a bunch of bright people and teach ‘em! This would prove the point one way or the other.
He’d recently seen the way they grew turtles in the Far East and he was convinced he would be able to grow successful commodity traders.
Jack Schwager describes the remarkable success of the Turtles in his book, Market Wizards. Dennis proved his point overwhelmingly – yes, there was no doubt that trading could be taught. A giant step was recorded in the history of systems trading.
Insights like this were responsible for Dennis turning $400 into hundreds of millions of dollars during his career.
Well - when I made this discovery, from Jack Schwager’s book, I figured that all I had to do was find somebody to teach me Richard Dennis’s techniques.
But I soon discovered there wasn’t anybody. Nobody was offering to teach the methods used by the professional traders. Richard Dennis had retired, so he wasn’t teaching anybody – and anyway why would the great man teach me?
Refusing to quit, I managed to get a position working at
Galt Capital, where one of my colleagues was none other than Curtis Faith, the most successful of all of Richard Dennis’s Original Turtles.
Okay, I was fortunate to find myself working with successful professional traders - but I have never forgotten how surprised I had been when I found that there was nobody around to teach new traders how to trade.
There and then I made up my mind that I would devote some of my time telling others how to employ the methods of the successful professional traders. - I realized that to ‘spread the message’ effectively a complete method was needed.
This method would combine all the essential procedures of the professional traders in one easy-to-follow process. That was how I came to produce what is known as the MODUS Method.
The overwhelming difference between the professional traders and all the ‘others’, is their method - and this accounts for their success. The methods they use, encapsulate all the system trading knowledge that has been amassed over the last half century or so.
These methods are not a secret in the sense that anybody is trying to guard against others finding out what they do. But they are detailed and specific and generally not available outside professional circles.
Because 'outsiders' are not aware of these methods, there is no demand for them. Influenced by products of doubtful worth, the majority of outsiders appear to trade according to all manner of ideas and beliefs, most of which only contribute to failure.
The thing that made the biggest impression on me at that time was that:
Non-professional traders have completely the wrong idea about how the professionals trade.
An examination of some of the false beliefs held by ‘outsiders’ is enlightening and informative:
Myth Number 1
"The professional trader knows the likely outcome of a trade, as soon as it is opened."
The professional trader has no idea what is likely to happen to a particular trade, whether it will go in his favor or not.
It may sound cavalier but you could say he doesn’t care what any particular trade does. That’s because he understands why one particular trade is not of great significance. What is important to him is that he follows his system.
Myth Number 2
"Professional traders know ‘tricks of the trade’ – trade secrets that give them an advantage over everybody else."
There are no tricks to know about. The trader knows things that give him an advantage but they are not tricks or even secrets.
Myth Number 3
"Professional traders are ‘closer to the markets’ and therefore able to gain special knowledge which is not available to the average person."
There is no special knowledge that could confer any significant advantage. If any such knowledge was used, the professional trader would violate one of his golden rules:
Never interfere with your live trading system.
Myth Number 4
"Professional traders must be prepared to take big risks – for which they need nerves of steel."
On the contrary - these traders tend to be risk averse and generally take much smaller risks than non-professional traders.
Well – that blows a few myths sky high, doesn’t it?
But the professional systems traders take most of the profits from the commodity markets – surely they must be doing many things differently to all the other traders?
Oh, yes, that’s true. They are doing quite a lot of things differently but that is nothing to do with any of these myths. In fact their whole manner of trading is different.
You’re saying it is all to do with their methods?
Yes, it is more than ‘to do with’ their methods it’s because of their methods.
Their methods are not particularly secret but they are not well known because they are not practiced very much outside professional circles – that means they are not at all well understood either.
This lack of understanding is the breeding ground for rumour, false belief and wild stories. It also provides a good foundation to allow unscrupulous people to develop products to catch the unwary.
The methods of the professional traders go a lot deeper than just being methodical, they incorporate the knowledge base that has been built up over the whole period of systems trading – about half a century.
These methods are not complicated but they are detailed and they have to be applied with discipline and consistency.
Human beings are not good at discipline and consistency – so the professional traders use computers for this side of things – because discipline and consistency is exactly what computers are good at.
Over the years, system traders have worked out the most important things that bring trading success – it should not be surprising that they have achieved the success they have because it has taken them a great deal of time to learn how to trade well.
They’ve found that successful trading demands doing things that humans don’t like doing all that much – such as assessing situations unemotionally – taking another trade immediately after suffering a big loss – resisting a tempting trade after a ‘big win’ - staying in a trade when ‘market rumours’ suggest doing otherwise.
So the first bunch of really successful traders were the ones who realized they were not good at doing these ‘difficult’ things when their trades were in progress.
But they also realized that humans were good at working out beforehand what ought to be done – if only these two things could be combined!
The challenge was to find out how to get the best of both situations – a sound way of trading that made the most of their human ingenuity without exposing their human weaknesses.
The next big advance was made when some traders began to delegate their work to computers – detaching themselves from the routine decisions. That was when systems trading truly came into being.
Although what I have described is the basic idea, there is a bit more to successful futures trading than this. Also, a successful trading method covers much more than just what is run on the computer.
Your system must cater for all your personal trading needs as well as all circumstances that may arise.
Above all, you need to be able to trust your system not to make a hash of things. No it’s more than that - you have to feel completely comfortable that your system will not make a hash of things.
Comfort is the key, because comfort means “OK” whereas discomfort means “I am going to interfere with my system” and that probably means - disaster!
The right ways to trade that professional traders have discovered and use are known within their group – and we now know they can be taught.
Their methods are detailed, but the good news is that all the detail is managed automatically by the methods themselves!
Professional trading software is highly specialized and dovetails perfectly with the methods used. The knowledge embedded in its design has been learned from the work and discoveries of predecessors.
Learning from scratch by personal experience is very expensive in all walks of life and especially so in commodity trading. It is therefore surprising how many new traders choose this perilous alternative.
This is not to say that the right way is to exclude the personal needs and preferences of the trader – nothing could be further from the truth. The trading method provides for the trader’s vital inputs.
For example, the professional has a method for translating his own personal attitude to risk, via his software, into the way he wants his trading to be conducted.
The trader’s method ensures that only the minimum of detail work is required to maintain his day to day trading. Most of his time is spent on planning and investigating new ideas – these are enjoyable tasks so it is not surprising that he reserves them for himself!
We now know the reasons why professional traders gain the lion’s share of the profits made in the commodity markets. We know these reasons are not well understood and that they have nothing to do with the myths that many think are responsible for their success.
The Beginnings of the Knowledge Transfer Movement
The arrival of cheap computers and reliable communications has changed the scene completely for the private individual trader.
Also, by releasing Veritrader on general sale a couple of years ago, Curtis Faith put professional quality software in the hands of anyone wanting to do serious system trading.
While all this was going on, Curtis and I both formed the opinion that it was in the best interests of the trading business if there was knowledge transfer between professional traders and new traders wanting to learn.
To start the ball rolling we put a lot of effort into designing and running trading seminars – teaching professional methods. Although these seminars were good and well received, it just took too much time to tell too few people.
It soon became clear that seminars were not going to be the way to tell everybody. I was still left with the unsolved problem of the ‘knowledge-gap’.
How was I going to find a replacement for the seminars?
- I needed a way I could explain HOW TO SUCCEED TRADING COMMODITIES to many more people much more efficiently.
I concluded that the best way to find an answer would be to cast my mind back to the time I began trading and ask this question:
What did I really need to know when I began trading commodities - that I later found was essential for success?
I wrote down 9 things that I called the Golden Rules. Then I realized I had omitted the method that was necessary to bind them all together into a working team. Adding the METHOD gave me what I call The Ten Golden Rules of the Winning Traders.
Objectives for the Golden Rules
The Ten Golden Rules of the Winning Traders was produced with the following objectives:
So what is in these Golden Rules?
The Golden Rules will make it clear to you what separates the winning traders from all the others.
To help students understand the Golden Rules properly, I felt I needed to add a few demonstration spreadsheets, explaining some of the essential principles that are tricky to put over in words.
To complete the job - and provide a solid foundation of knowledge for the student, I have included about 50 articles, explaining topics and terms of importance to commodity system traders.
And here’s what you’ll learn ….
In compiling the ‘Ten Golden Rules of the Winning Traders’ I have concentrated on those few issues which are the essence of what Richard Dennis taught and proved were the key to successful futures trading.
In the 'Golden Rules' you will discover ....
I've just given you a list of detailed stuff all of which constitutes the essential methods employed by the successful commodity traders.
So does it mean that when I know what the Golden Rules are, I just apply them to my trading?
Yes, in principle. But as you can see, there are quite a few things to look after and get right. It would be too much to expect any trader to do all this manually every trading day.
That is why, in practice - you need to systematize it all by applying a METHOD than incorporates all the rules PLUS the trading software.
When this is done, the amount of human effort required and time taken is minimal.
Using the SYSTEMATIC METHOD you will be able to conduct all your system evaluations and live trading in the systematic way needed for delegation to your computer.
The very essence of system trading is that you delegate your routine live trading to your computer – without interference.
Where do I go from here
– what is the next step?
Right now, you are standing at the place I refer to as the enlightenment barrier. All new traders must pass through this barrier before they can begin to make progress with their trading.
Knowing and understanding what needs to be done is the first step. The Ten Golden Rules of the Winning Traders will open your eyes and help you through the barrier.
Nowhere else will you find anyone offering to tell you the methods employed by successful professional traders.
In The Ten Golden Rules of the Winning Traders the essential methods are all presented as one comprehensive systematic method of trading.
If you place your order now, you can download the Ten Golden Rules for just $47.
My Unconditional, No-Quibble Guarantee
First of all, let me say that I genuinely believe you will be delighted with the ‘Ten Golden Rules.’
Such is my confidence and my experience with many happy purchasers, I have no hesitation in offering you a full refund if within six months you tell me you are not satisfied with your purchase. I’ll do this cheerfully and ask no questions.
I'm convinced that the route to success can be fast-tracked by 75% and the costs reduced by much more than that if you get the right advice early enough.
Regards and good trading,
Sincerely,
David Bromley.
P.S. – If you came to this web site looking for information on how to enjoy the life of a successful futures trader, The Ten Golden Rules is for you. My extensive research of the subject has uncovered no such item which is why I produced what I needed when I started out. And you can order it here right now.
P.P.S. – This is a ‘no-lose’ trade. You can ask for a full refund if you feel you made a mistake with your purchase within six months.
Click Here to Download
The 'Ten Golden Rules of the Winning Traders'
Modus Trading
Contact David
Copyright David Bromley 2006
All Rights Reserved.
Who is David Bromley?
Click Here for More Information
David Bromley helps traders develop a personal strategy for success with clear, easy to follow advice and software produced by professional traders.
Prior to joining U.S. Investment Advisor
Galt Capital, he developed a complete trading strategy testing harness which he used to develop and implement his own proprietary investment strategies.
Modus Students
On 5 Continents
What some readers say ...
“David does a great job of outlining a set of best practices for trend following system traders into his Golden Rules eBook. His use of real world examples was original and insightful."
Jim T - CO, USA
Dear David,
"Thank you for producing the unique and highly informative 'Ten Golden Rules.' It’s one thing to read a long narrative on the importance of sound money management. It’s another to truly understand what it means.
Thanks again for providing
direction for my journey."
Nick S - MN, USA
"I thought I knew them all until I read David Bromley’s ‘Golden Rules’ . It is truly inspiring and necessary for every trader.
Hal C - GA, USA.
